Energy Trading
Risk Management & Pricing

Global energy markets are shifting. Energy price hikes and dives send shock-waves across the industry and affect businesses. The energy resources and their market trends are also highly interrelated. To make good business decisions, we need to first understand the energy markets. Adam Smith once described the market as where “individual ambition serves the common good”.

This training course introduces the audience to the fundamentals of the energy markets and gives them insights for the trading and risk management of prices. It highlights the role of energy markets (including oil, natural gas, and electricity) and discusses the insights we gain from these markets to make better business decisions. It also highlights new trends (such as the emission markets). Our focus would be on key insights that support major decisions in energy investment projects.

This GLOMACS Energy Trading, Risk Management & Pricing Training Course training course will highlight:

• The energy landscape and the global energy markets
• The regional electricity and natural gas markets
• Market insights for value creation through prudent investment decisions
• Risk and uncertainty in markets
• Management of risk (including hedging strategies) and the power of forecasting
• Emerging trends: electricity, weather, and emission markets

To succeed in the energy industry is to create value. The energy commodity markets supply information about the industry trend and the overall activity of its participants. This leads to insights that support good business decisions. Good project decisions often lead to value creation.

At the end of this Energy Trading, Risk Management & Pricing training course, you will learn to:

• Understand the trends and challenges of the energy industry
• Appreciate the dynamics of the energy markets and its drivers
• Gain insights from market dynamics to support project appraisals.
• Apply the understanding in technical and economic decision making.
• Develop models that create business insights

The instructor uses a proven learning technology that has been implemented with considerable success. The training course include lectures, discussions, and guided real-world practice. The aim is to develop problem-solvers and effective decision makers rather than merely conveying information.

The main challenge in the energy industry is in good managerial decision making. The firms should be able use market insights to find (and invest in) valuable projects. This training course trains individuals that;

• Increase organization’s capabilities in analyzing and evaluating energy ventures.
• Possess knowledge and skills to draw insights from market dynamics.
• Are effective in enhancing the energy value chain.
• Have an overview of the energy business and the appeal of the projects.
• Support the prudent decision-making process.
• Open doors to further opportunities in the energy landscape

Gaining knowledge about the workings of energy markets enhances one’s skills in decision making and further opens one’s perspectives. This is because these skills lead to enhancing the value of the person in an organization. The set of skills and knowledge that this training course offers prepares individuals for a more effective role within the process of project appraisals and investment in the energy business.

By attending this training course, the delegates will gain the following;

• Enhances the analytic capabilities of participants.
• Introduces the audience to state-of-the-art methods of analysis using simulation software
• Provides clarity for decision support.
• Leads to better managerial understanding (and better business decisions) using market insights.
• Empowers the participants to use the analytic skills in similar contexts.

This GLOMACS Energy Trading, Risk Management & Pricing Training Course is suitable to a wide range of professionals including:

• Managers and decision makers involved in value creation for the energy business.
• Commercial staff who would like to gain in-depth knowledge of energy markets.
• Decision makers involved in oil and gas investment.
• Analysts interested in market insights that support project decisions.
• Practitioners who aim to broaden their knowledge of the energy markets.

DAY 1

An Overview of the Energy Industry

• A brief history of the petroleum industry.
• Energy markets: crude oil, natural gas, their products.
• Other sources of energy: Fossil fuels versus renewable energy.
• The supply and demand forces in the energy markets.
• Reserve estimation and global reserves of oil and natural gas.
• Evolution of pries and price discovery mechanism.

DAY 2

Global and Regional Energy Markets

• The formation of the energy commodity markets.
• The value chain for energy projects.
• Price trends and insights for business decisions.
• Project value drivers.
• Lessons learned from the oil and gas industry.

DAY 3

Uncertainty and Risk in Prices

• Uncertainty versus risk in energy markets.
• Introduction to corporate finance and the foundation of value creation.
• Comparisons across time (time value of money).
• Comparisons across levels of risk (risk premiums).
• Measures of value.
• Sensitivity analysis in project appraisals.
• Price risk (as one of the most important factors of the business).

DAY 4

Managing Market Risk

• Modeling uncertainty.
• Uncertainty, risk, and the upside opportunity.
• Tools of risk management: insurance and hedging.
• forward, futures, options, and other derivative contracts.
• Arbitrage opportunities and efficient markets.
• Case study: Setting-up a crude oil hedge using forward contracts.

DAY 5

Analytical tools and future trends

• Implementation of economic thinking in Spreadsheets.
• Analysis of cash flows.
• The markets and the geo-politics of energy.
• Practical aspects of petroleum business decisions.
• Behavioral aspects of financial decisions.
• Heuristics and biases in management decision making.
• Emerging trends: environmental concerns and the emission markets.
• Concluding remarks: Does “individual ambition serve the common good”?

In Association With

Oxford Management Centre

A GLOMACS - Oxford Management Centre collaboration aimed at providing the best training services and benefits to our valued clients.

The Energy Training Centre

Our collaboration with Energy Training Centre aims to provide the best training services and benefits for our valued clients

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All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.

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Tel : +971 - 04 - 425 0700, Fax : +971 (04) 425 0701, Email : info@glomacs.com