Introduction

Corporations involved in the energy sector need executives who understand the extreme volatility of global energy markets and how to manage the financial risks created by changing energy prices. 

This ETC online training course on Advanced Energy Finance Analytics is designed to give the participants an in-depth understanding of energy finance by addressing three areas of finance in an energy context: Pricing, asset valuation and risk management. This ETC online training course will increase your comprehension of the energy markets, as well as demonstrate how to model and forecast energy and forward/futures prices. 

This ETC online training course will build knowledge of energy-related derivatives, including the different derivative products and how to apply them in the energy markets to develop hedging and risk management strategies.

This ETC online training course on Advanced Energy Finance Analytics will develop an understanding of pricing, risk management, asset valuation, and derivatives within the energy markets:

  • Learn to use financial models to analyze and forecast energy prices; extrapolate forward prices beyond the liquidity tenor
  • Understand the risk of and return from futures and options contracts on energy commodities
  • Manage and optimize your organization’s energy risk exposure
  • Learn to estimate and calculate volatility in energy prices
  • Utilize real options theory to value energy assets; use information from futures/option prices to make optimal production decisions: Optimal timing for extraction, the optimal rate at which to extract oil (gas) from a field; value oil fields, pipelines, and storage facilities, power plants

Objectives

This ETC online training course on Advanced Energy Finance Analytics is designed to provide participants with an understanding of pricing, risk management, asset valuation, and derivatives within the energy markets:

  • Use financial models to analyze and forecast energy prices; extrapolate forward prices beyond the liquidity tenor
  • Understand the risk of and return from futures and options contracts on energy commodities
  • Manage and optimize their corporations’ energy risk exposure
  • Estimate and calculate volatility in energy prices
  • Apply option valuation techniques to the energy markets
  • Understand and use derivative products to mitigate energy price risk; use structured products to enhance firm value; understand exotic structures unique to oil (e.g., average option) and gas and power (e.g., swing options, weather derivatives)
  • Utilize real options theory to value energy assets; use information from futures/option prices to make optimal production decisions: Optimal timing for extraction, the optimal rate at which to extract oil (gas) from a field; value oil fields, pipelines, and storage facilities, power plants
  • Apply Value-at-Risk to the energy industry

Training Methodology

This online training course will utilize a variety of proven online learning techniques to ensure maximum understanding, comprehension, retention of the information presented. The training course is conducted Online via an Advanced Virtual Learning Platform in the comfort of any location of your choice.

Who Should Attend?

This ETC online training course is designed for individuals working in financial analysis, valuation, trading, marketing,  risk management or quantitative analysis positions with oil and gas exploration companies; investment and commercial banking, consulting, and financial services firms working in the energy sector; production and distribution companies; energy trading firms; and corporations outside the energy industry with a significant cost exposure to energy prices, such as energy-intensive manufacturing industries, transportation including air, coal companies, and oil-field services.

This ETC training course is suitable for a wide range of professionals but will greatly benefit:

  • Financial Analysts
  • Quantitative Analysts or Researchers
  • Energy Traders dealing with commodities
  • Risk Managers dealing with commodities
  • Commercial and Investment Bankers dealing with commodities
  • Consultants in the Commodity Arena
  • Government and Regulatory Officials, especially those with responsibilities for the energy sector

The Course Outline

  • The Crude-Oil Markets
  • Level and Slope of Crude-Oil Futures Markets
  • Fundamentals of Forwards and Futures Contracts:  Definition, Payoff Diagram, Pricing by Arbitrage
  • Forward/Future Prices and Forecast Prices
  • Black-Scholes Formula
  • Option “Sensitivities” (the “Greeks”): Delta and Gamma
  • Characterizing the Volatility “Surface” Across Time and Strike
  • Jump-Diffusion Process
  • Categorizing Derivative Products: Option Collars, Average Options, Spread Options, Swing Options, Weather Derivatives, Commodity-linked bonds; “Swing” Options; Weather Derivatives
  • Structuring and Valuing Option Collars

The Certification

The Energy Training Centre e-Certificate will be given to the participants who attend and complete the online training course.

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