Training Course Overview

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 program is designed to give 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 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 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.

By the end of this training course delegates will leave with an understanding of the energy markets and how to manage the financial risks created by volatile energy prices. In addition, delegates will gain the skills to accurately value energy assets and use derivatives to mitigate energy price risk.

Training Course Objectives

This training course 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, optimal rate at which to extract oil (gas) from a field; value oil fields, pipelines and storage facilities, power plants

Designed For

This 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 training seminar is suitable to 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, esp. those with responsibilities for the energy sector

The Course Outline

Amongst a wide range of valuable topics, the following will be prioritised:

Session 1:  The Current State of the Equity and Commodity Markets -- The "Message from Markets"

Session 2:  Overview of Risk Management

Session 3:  Option Pricing

Session 4:  Volatility and Correlation in Energy Prices

Session 5:  Using Derivative Products to Mitigate Energy Price Risk

The Certification

Certificate of Completion will be provided to the participants who attend and complete the training course.

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