N604 - Introduction to Energy Trading and Hedging

Course Overview
This two-day course is designed for professionals wishing to obtain a practical understanding of the basic energy derivative structures that are used in trading, marketing and risk management today. An emphasis is placed on understanding how financial tools are added to physical market components to manage the risk faced by both energy users and suppliers. Participants are requested to bring calculators preferably with the natural exponent function to the course.

Participants will learn to:
•	Understand the difference between risk and uncertainty.
•	Differentiate market and non-market risks.
•	Analyze the factors that impact crude oil, natural gas and natural gas liquids supply and demand.
•	Describe and contrast auction, physical and financial markets.
•	Differentiate spot and forward prices.
•	Understand how risk is described and reported.
•	Analyze the various hedge instruments and how they differ.
•	Employ strategies for hedging risk.

A complete set of course materials and lunches are included.

All scheduled event(s) for this short course:
Date: TBA
Course Syllabus
Download course syllabus
Course Outline
  • Energy Sector Risks (Physical, Financial, Basis, Performance, Cross-Commodity)
  • Natural Gas Index Pricing
  • Crude Oil Pricing
  • Understanding the Forward Curve
  • Energy Forward Curve Behavior - Backwardation/Contango/Cyclicality
  • Basic Hedging Instruments - Futures Contracts and Forwards
  • Basic Hedging Instruments - Fixed-for-Float (Fixed) Price Swap & Basis Swaps
  • Futures Versus Forwards Versus Swaps
  • Transforming Risks using Derivatives
  • Basic Risk Reporting - Position Reports and Mark-to-Market Reports
  • Basic Risk Reporting - Profit/Loss Reports and Value at Risk Reports
  • Managing and Controlling Risk Reports

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Detlef Hallermann earned an M.S. and a Ph.D. from the Colorado School of Mines, an MBA from the University of Denver, and a B.S. in Petroleum Engineering from Texas A&M University. He is currently Program Leader for the Reliant Energy Trade Center at Texas A&M University, and an Adjunct Professor for Rice University involved in their Continuing Education Programs. Dr. Hallermann has created programs related to almost all aspects of front and mid-office responsibilities for energy trading, and is well versed in oil and gas acquisitions, energy trading, and risk management.

Training Venue

To avoid potential course disruptions caused by the attendance of unconfirmed registrants, the training venue address will ONLY be provided to registrants upon receipt of payment (via an email confirmation note).

Participant Evaluations
Average participant rating 4.5 out of 5 stars
50 participant evaluations
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All course reviews are unedited.
October 27, 2016, Director, Human Resources, Calgary
I thoroughly enjoyed this course and the instructor. I left with a great introduction to trading & marketing and I will be more effective in my role as a result.
October 7, 2015, Business Development Engineer, Calgary
Detlef did a great job explaining energy forward curve behavior and ways to hedge with excellent examples and kept everyone engaged throughout the course. I learned a lot and really enjoyed the course.
October 7, 2015, Manager, Technical Business Support, Calgary
I think it was very worthwhile to attend "Energy Trading and Hedging". I learned a lot. I was impressed with the caliber of the instruction and the location/convenience of the facility.
May 22, 2015, Manager Accounting, Calgary
Interesting course material that was presented in a clear and understandable way.
May 22, 2015, Senior Consultant, Calgary
This is a good introduction and overview to trading and hedging, however, it does not have sufficient time to demonstrate the full impact of each type of trade on your income statement and balance sheet.
May 25, 2015, Controller, Calgary
This was one of the better courses that I have attended. The material was catered to the group and there was more in depth than many of the other courses I have taken. Highly recommended.
March 19, 2015, Principal Accountant, Houston
While the class was a little pricy, I feel it was worth every dime. The instructor was engaging and interactive. I would not hesitate to take another course from this professor as he made a very complex topic relatable, understandable, and memorable.
February 10, 2014, Asphalt & Emulsions Sales Manager, Houston
Excellent course! A great deal of information was coveredat the right level of detail. The course material was great and the instructor even better. He was very thorough and provided some great real life examples to help foster understanding of the course content
February 14, 2014, Director Commercial Applications, Houston
Informative and interesting introduction to Energy Trading and Hedging. Information was very applicable to my role.
October 25, 2013, controller, Calgary
Excellent course! instructor has extensive practical and theory based knowledge which aided in explaining concepts