Price Risk Management in Energy MarketsTRT/PRM

Who should attend?

  • This training provides a better understanding of the principles and techniques for Oil & Gas price risk management.
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.

Level : Proficiency

Course Content

  • OIL & GAS MARKETS

      • Physical Oil & Gas markets.
      • Markets structures and types of transactions.
      • Price references and pricing mechanisms.
  • PRICE EXPOSURE & RISK MANAGEMENT

      • 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

      • 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

      • Forward contracts.
      • Swaps.
      • Clearing OTC Transactions.
      • Options: pricing and sensitivities.
      • Options strategies: caps, floors, collars.
  • HEDGING STRATEGIES

      • Various examples.
      • Case study.

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.

Ways & Means

  • Selected teaching methods: case studies.
  • Hedging exercises.