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Price Risk Management in Energy Markets

3 days GIP/PRM
Level
Proficiency
Audience
  • Professionals in the Oil & Gas industries impacted by the volatility of oil or gas prices: producers, marketers, refiners.
  • Purchasing, planning and finance departments of energy consumers.
  • Professionals from the bank sector who need to understand the specificities of Oil & Gas price risk management.
Purpose
  • This training provides a better understanding of the principles and techniques for Oil & Gas price risk management.
Learning Objectives
  • Upon completion of the course, participants will be able to:
  • review the ways of evaluating price risk,
  • analyze and manipulate the exchange traded products used for hedging,
  • understand the different over the counter products used in hedging strategies for different Oil & Gas activities.
Prerequisite
  • Bachelor’s degree +3 and/or a minimum 3 years of working experience in oil Supply chain or oil Markets.
Ways and means
  • Selected teaching methods: case studies.
  • Hedging exercises.

Oil & gas markets 0.25 day
  • Physical Oil & Gas markets.
  • Markets structures and types of transactions.
  • Price references and pricing mechanisms.
Price exposure & risk management 0.75 day
  • Price risk: what is at risk?
  • How to monitor it?
  • How to mitigate the risk: definition of hedging.
  • How to account for the risk: Mark to Market and Value-At-Risk.
Exchange traded products: futures 0.75 day
  • Exchanges and their organization: NYMEX, ICE.
  • Main Futures contracts.
  • Electronic trading.
  • Hedging using Futures.
  • Basis risk and hedging imperfections.
  • Taking advantage of the market structure (contango, backwardation).
Other derivative instruments: forwards, swaps & options 0.75 day
  • Forward contracts.
  • Swaps.
  • Clearing OTC Transactions.
  • Options: pricing and sensitivities.
  • Options strategies: caps, floors, collars.
Hedging strategies 0.5 day
  • Various examples.
  • Case study.
2016 course calendar
Language Dates Location Tuition Register
Oct 25 - 27 Rueil €2,225 Online By email

2017 course calendar
Language Dates Location Tuition Register
Oct 17 - 19 Rueil €2,450 Online