“Energy prices are an important risk.”

Managing Energy Price Risk

The Energy Price Risk Practitioner Series are designed to provide participants with an understanding of pricing, risk management, asset valuation and derivatives within the energy markets.

The program “Managing Energy Price Risk” lays a solid foundation for the analysis of issues in energy price risk assessment and management, including the relevant markets, modules and analytical approaches.

Key Takeaways
  • 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, 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
Who should attend?
Those who work with:
  • Oil and gas exploration companies
  • Production and distribution companies
  • Coal companies
  • Energy trading firms
  • Oil-field services
  • Energy-intensive manufacturer
  • Transportation companies especially air
  • Investment and commercial banking
  • Financial services firms
  • Consultants in energy sector
And involved in
  • Financial analysis
  • Valuation
  • Trading
  • Marketing
  • Risk management
  • Quantitative analysis
Or in terms of job titles, these individuals include:
  • 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
About the trainer:
The trainer is currently a Professor of Finance at the University of Texas at Austin.

His expertise covers investments, interest rate-sensitive instruments and energy derivatives in the academic and practitioner literature. He is the editor of Real Options and Energy Management: Using Options Methodology to Enhance Capital Budgeting Decisions published in 2002 by Risk Books, London.

While on a two-year 1991 - 1993 leave of absence from the University of Texas, he served as Vice President, Trading Research Group at Merrill Lynch & Co. From Jan. 2010 to Feb. 2011, he served as Commodity Market Modeling practice area manager at Morgan Stanley & Co.

Since 1993, he has served as consultant to government agencies, an insurance company, investment banks, risk advisory firms and an energy-derivative software vendor in the interest-rate and energy-commodity arenas. In Nov. 2004, he was one of fifty individuals selected by Energy Risk Magazine to the “Energy Risk Hall of Fame."

In the energy-consulting area, he hasaddressed the multiple issues of Risk Assessment; Construction of Optimal Hedge Portfolios; VAR and CVAR; Dual-Fuel Options; Valuation of Load-Following Services; Modeling Energy Prices and Pricing Monthly and Daily Options; and the Valuation and Optimal Management of Storage Facility.

Dates Location  
22 - 23 August 2011 (Mon - Tue) Royal Plaza on Scotts, Singapore Download Brochure


Official Endorsers    
Global Association of Risk Professionals (GARP)
The Centre for Energy Environment Resources Development (CEERD)
Official Media Partners    
Oil Offshore Marine
Arab Petroleum Research Center
Reconnect Africa
World Oils
Raw material waste
Biofuels Digest
E-Energy Market
Energy Update
Interfax China


Related Event:

Real-Life Case Studies

  • “Managing Energy Price Risk” – “How a major European airline disposes of its energy risk exposure.”