3 days GIP/PRM
- 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.
- This training provides a better understanding of the principles and techniques for Oil & Gas price risk management.
- 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.
- 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.
- Clearing OTC Transactions.
- Options: pricing and sensitivities.
- Options strategies: caps, floors, collars.
Hedging strategies 0.5 day
- Various examples.
- Case study.