Foundations of Energy Risk Management: An Overview of the Energy Sector and Its Physical and Financial Markets

by GARP (Global Association of Risk Professionals)

Overview

A comprehensive overview of the energy sector and its physical and financial markets

The first in a series of study guides for GARP's Certificate in Energy Risk Management program

The Global Association of Risk Professionals (GARP) created the Certificate in Energy Risk Management to provide a practical understanding of the risks inherent in the energy industry and to offer a comprehensive overview and analysis based on the everyday practice of energy risk management in the global physical and financial energy markets.

Foundations of Energy Risk Management is an integral part of GARP's Certificate in Energy Risk Management—a rigorous, practice-driven, comprehensive program developed to meet the needs of today's dynamic global energy markets and the highly skilled professionals working with energy—and the first in a series of books focusing on energy risk management.

Developed from in-depth insights and expert advice from internationally recognized leaders in energy risk management, this book familiarizes the reader with the language of the energy industry, energy trading, and risk management, and covers:

• The steps in the commodity cycle

• The global markets for various energy products—crude oil, refined products, natural gas, LNG, and electricity/power

• The various risk types inherent to the energy business

• The risk management tools available to energy companies . . . and much more

Each chapter contains practical, real-life examples and explanations of energy-related events to explain the "science" and "business" of energy. Tables, graphs, and diagrams reveal the complex path energy takes to reach the consumer, the risks relating to various energy commodities, and the role of the commodity markets. For anyone working in the energy industry or interested in energy, it is essential to have a firm understanding of the physical and financial energy markets, how these two markets interrelate, and what risks are involved in each. Foundations of Energy Risk Management helps in achieving this goal.

It puts you in a better position to excel in GARP's Certificate in Energy Risk Management.

Completing the Certificate in Energy Risk Management is not only an accomplishment, but the right step in career development.

Product Details

ISBN-13:	9780470447826
Publisher:	Wiley
Publication date:	12/23/2008
Series:	Wiley Finance , #512
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	140
File size:	3 MB

About the Author

The Global Association of Risk Professionals (GARP) is a not-for-profit association consisting of 74,890 individuals around the world who are involved in financial risk management. Members come from more than 100 countries and work in regional and global banks, asset management firms, insurance companies, central banks, securities regulators, hedge funds, universities, large industrial corporations and multinationals.

Table of Contents

Introduction.

Garp's Certificate In Energy Risk Management.

Garp's Foundations Of Energy Risk Management Course Specification.

Syllabus And Learning Outcomes.

User Guide.

Chapter 1: The Energy Cycle.

1.1. Introduction.

1.2. Exploration.

1.3. Production Or Extraction.

1.4. Processing.

1.5. Transportation And Storage.

1.6. Refining.

1.7. Distribution.

1.8. Integrated And Specialty Companies.

Chapter 2: Risks In The Energy Cycle.

2.1. Overview.

2.2. Market Risk.

2.3. Credit Risk.

2.4. Operational Risks.

2.5. Liquidity Risk.

2.6. Political And Regulatory Risk.

2.7. Price Risk And Credit Risk.

2.8. Integrated VS. Specialty Companies.

2.9. Common Risk Management Tools.

2.10. Volatility And Energy Risk Management.

Chapter 3: World Energy Use.

3.1. Overview.

3.2. Energy Intensity.

3.3. Energy Consumption By End-Use Sector.

Chapter 4: Major Sources Of Energy.

4.1. Overview.

4.2. World Crude Oil.

4.2.1 Production.

4.2.2 Consumption.

4.2.3 Oil Reserves.

4.2.4 Factors Influencing World Oil Markets.

4.2.5 Factors Influencing Crude Oil Prices.

4.2.6 Refined Crude Oil Products.

4.3. World Natural Gas.

4.3.1 Production.

4.3.2 Consumption.

4.3.3 Natural Gas Reserves.

4.3.4 Factors Affecting Gas Markets.

4.3.5 Factors Affecting Natural Gas Prices.

4.4. World LNG.

4.4.1 Recent Developments.

4.4.2 The LNG Market.

4.5 Coal.

4.5.1 Production.

4.5.2 Reserves.

4.5.3 Consumption.

4.5.4 Coal To Liquid Fuels (CTL).

4.6. Power / Electricity.

4.6.1 Power Generation.

4.6.2 Basic Technical Fundamentals of Power.

Chapter 5: The Markets For Energy Products.

5.1. Introduction.

5.2. The Physical Markets.

5.2.1 Spot Markets.

5.2.2 Crude Oil Spot Markets.

5.2.3 Crude Oil Forward Markets.

5.2.4 Physical Gas Markets.

5.3. The Financial Markets.

5.3.1 Organization Of Financial Markets.

5.3.2 Financial Derivatives.

5.3.3 Basis Risk.

5.3.4 Speculation, Arbitrage And Hedging.

5.4. The Relationship Between The Physical And Financial Prices.

5.5. Emission Trading

5.5.1 Emission Trading Programs.

5.5.2 Emission Trading In The United States.

5.5.3 Emission Trading In The European Union.

5.5.4 Kyoto Protocol.

Chapter 6: Real Options In The Energy Market.

Glossary.

Index.

Acknowledgements.