Price Risk Management in the Energy Industry

INTRODUCTION

Virgil famously wrote “Fortune sides with him who dares”, meaning rewards often go with risk. Today, global energy markets are shifting. Energy price hikes and dives send shockwaves across industry and affect businesses. To make good business decisions, we need to first understand the uncertain energy prices.

This Price Risk Management in the Energy Industry training course introduces the audience to commodity risk management in the energy markets. It highlights the dynamics of oil and gas markets and discusses the insights we gain from these markets to make better business decisions. Our focus would be on key insights that support management of risk for major decisions in the energy business.

This Price Risk Management in the Energy Industry training course will highlight:

• The energy landscape and the dynamics of energy commodities
• Global crude oil market and regional natural gas markets
• Modelling risk and uncertainty in energy prices
• Management of risk and the role of forecasting
• Emerging trends: electricity, weather, and emission markets

Objectives

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 risk management strategies and leads to good business decisions. Good project decisions often lead to value creation.

At the end of this Price Risk Management in the Energy Industry 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 skills in management or price risk using market instruments
• Gain insights from market dynamics to support project appraisals
• Apply the understanding in technical and economic decision making

Training Methodology

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

Organisational Impact

In this training course, we discuss a global perspective of the energy markets while also highlighting the regional characteristics. We further introduce the audience to effective risk management strategies that would lead to corporate value creation. Such an understanding is vital for project investment decision making. This course trains individuals that:

• Increase organization’s capabilities in analyzing and pricing the uncertain ventures in the energy industry
• Possess knowledge and skills to deal with trading and investment decisions
• Are effective in enhancing value chain through hedging risks and capitalizing on the upsides
• Understand the overall mechanics of the energy markets and appeal of the ventures
• Support the prudent decision-making process in projects
• Open doors to further opportunities and more informed decisions

Personal Impact

By Attending this training course will be able to:

• Increase organization’s capabilities in analyzing and evaluating uncertain investments and trades
• Possess knowledge and skills to draw insights from market dynamics and manage risky positions
• 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

WHO SHOULD ATTEND?

The material in this training course will be useful to managers and decision makers in the energy business. The training course is also relevant to analysts, engineers, and consultants that support the process of decision making. Professionals interested in the practice of pricing and risk management also find this course useful.

This Price Risk Management in the Energy Industry training course is suitable to a wide range of professionals but will greatly benefit:

• Managers and decision makers involved in value creation for the energy business
• Commercial staff who would like to gain in-depth knowledge of price risk management
• Decision makers involved in energy investments
• Analysts interested in market insights that support project decisions
• Researchers and practitioners who aim to broaden their knowledge of the business