Paige took a huge picture of gas trading and taught on a level that was practical and easy to understand. She built on each topic to convey the big picture of how the different elements are interrelated. She is very well-rounded as an instructor and good at teaching and imparting her knowledge.
Paige is very knowledgeable about the market and did an excellent job of teaching – she is very patient and detail oriented. Good course material – the book will be very helpful for future reference.
Students attending this training class will learn:
• how to identify the various risks that the energy industry participants are exposed to
• how each industry player looks at managing the risks that they are exposed to
• how to implement a perfect hedge strategy versus a partial hedge strategy
• how the various risk management products are applied to day to day business practices
• to understand how NYMEX futures, options and EFP’s work
• to understand the various types of swaps and how they are used
• to understand the various types of option contracts and how they are used
• which risk management product works best for their customer or themselves and why
• how each risk management product works by using real life examples
Section I - Key Concepts to Understanding Risk is a discussion of where we are in today’s energy industry and discusses what risk is, why does risk exist, the types of risk that we encounter in the energy industry and the basic concepts on how to manage this risk.
Section II - Risk Management in Practice introduces the various risk management products, how they work and how they can be applied using real world examples. How each product is used to manage risk will also be discussed. Forwards, Futures, Basis and EFPs are the focus of this section.
Section III - Options, Caps, Floors and Collars introduces the products and discuses various applications in the industry.
Section IV - Swaps looks at the different types of swap contracts and their use in managing risk.
Section V - Class Exercise – Students will work through real life problems using the risk products.
Atmos Energy Mktg
The Basics of Risk Management Training Class is designed to provide a comprehensive understanding of the energy risk-management world as it exists today. The class discusses how the energy industry has undergone radical changes from a fairly straight-forward, regulated industry, with a limited number of players, to an increasingly complex, market-driven industry with a multitude of players and new products. The consequence of the increasing complexity will be talked about as well as how all sectors of the industry are re-evaluating their needs, assessing the risk involved with these needs and are accepting or rejecting various methods and products for managing their risk and needs. The class emphasizes what risks the participants in today’s energy industry are exposed to, managing physical risk, price hedging, and understanding the various risk management products.
Each type of risk-management product/tool used will be discussed and compared to help the attendee determine which type of tool is best for themselves and their customer. A discussion of how Futures and NYMEX are used to manage risk is included as well. The attendee will gain an understanding of what price risk is, how it applies to their business, and how to combine the use of the available risk-management tools to develop a risk-management strategy for themselves and their customer.
Basics of Risk Management