Natural Gas Trading and Hedging - NGTH 

CPE Credits Awarded: 8
Categories: The Natural Gas Industry , Trading, Derivatives, Hedging and Risk Management

Date Register by Date Duration Venue Price Register
22 Jun 2017 19 May 2017 1 Day Calgary TELUS Convention Centre Country: ca
$ (USD)1,170.00+5%GST
25 Oct 2017 22 Sep 2017 1 Day New York City, NY Country: us
$ (USD)1,170.00

5c003d5e591091d484ea3c6e8f6051f1150 150This course will provide an understanding of the full spectrum of natural gas trading and hedging. It covers the physical aspects of commodity markets and natural gas as a commodity, discusses the influence of shale gas, defines trading and hedging, presents the main types of contracts for natural gas trading and hedging, defines and discusses natural gas volatility, gives examples of primary types of natural gas trading, and discusses integrated portfolio management for hedging and trading.

All facets of an organisation are likely to attend including: human resources, info systems, back-office personnel, credit department, accountants, legal, quantitative analysts, consultants, programmers, trade support staff, secretarial, marketing/sales, risk managers. This course provides a broad overview of physical and financial natural gas trading and hedging, and requires no prerequisites.

Natural Gas & the Natural Gas Physical Markets

  • Measuring natural gas
  • Common trading quantities
  • Natural Gas Market Centers - Hubs
  • Natural Gas Exchanges

The Shale Gas Revolution

  • New natural gas reserves
  • Horizontal drilling and fracking
  • Shale’s affect on:
    • production
    • pipelines
    • basis values
    • LNG exports

Defining Trading and Hedging

  • What does “trading” mean?
  • What is hedging?
  • Definition of risk management
    • Risk management vs. hedging
    • The risk management process
  • Dealing with non-price risks such as credit, operational and cash flow
  • Reasons for hedging and hedging objectives
  • The mechanics of hedging
  • Physical vs. financial settlement

Market Instruments in Natural Gas

  • Physical and financial instruments
  • Index transactions
  • Forwards, futures and swaps
  • Clearinghouses
    • Margining and collateral
    • OTC clearing
  • Advantages and disadvantages of each instrument
  • Hedging with forwards, swaps, futures ad options

Natural Gas Price Behavior and Volatility

  • Definition, measurement, and types of volatility
  • The distributional characteristics of natural gas prices
  • Volatility skews

Natural Gas Basis and Basis Swaps

  • Definition of basis and basis quoting conventions
  • Basis statistical analysis
  • Basis swaps, basis swap quotes, payoffs and hedging examples

Optimization and Monetization of Natural Gas Assets and Exposures

  • Natural gas trading strategies: monetizing storage and transportation assets
  • Position management and integrated portfolio management

Exercises

  • Learning objectives are reinforced by a series of group quiz questions spread throughout the course
  • Two rounds of trading simulations

Faculty

Testimonials

If you have attended a past course please provide us with some feedback.

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