COURSE SUMMARY

This one-day course is designed to introduce delegates to the functionality of the natural gas industry and those involved in its operation. Discussion includes physical natural gas beginning with exploration and concluding with the delivery to the burner-tip. This course uses an historical perspective to explain how the regulation shaped the current market place and will also introduce financial products used for hedging physical positions. Delegates will become familiar with industry nomenclature and operation of the physical natural gas market place.

Delegates interact through a trading simulation designed to show how trading has evolved and how different physical and price risks are managed with financial tools. Delegates will create and manage a natural gas position using fixed and floating price instruments.

Includes Online Pre-study Module
This course is accompanied by a preparatory course available online. Delegates will receive a voucher as part of their joining instructions upon confirmation of registration. By taking advantage of this "blended" learning approach, in-class time and learning are optimized.

PRE-REQUISITES

As this is an introductory course, there are no prerequisites.

WHO SHOULD ATTEND?

As this is an introductory course, all facets of an organization are likely to attend. The most likely to attend are: human resources, info systems, credit dept, accountants, legal, quantitative analysts, consultants, programmers, trade support staff, secretarial, marketing/sales, risk managers.

COURSE CONTENTS

Natural Gas, Supply and Reserves

• Natural gas as a commodity
• Exploration and Production
• Measurement
• Classification
• Shale Gas
• Reserves

Physical Natural Gas Monthly Supply Management

• Base load vs. Swing
• Bid week and physical gas trading

Industry Segments

• Producers
• Transportation
  • Pipelines
  • Rate Basics
• Storage
• End Users

Deregulation

• History of natural gas regulation
• Pre-open access vs. open access
• Federal and State regulation
• Regulated market challenges
• The beginning of open access
• The emergence of a spot market
• FERC Order 636
• Structure and operation of the deregulated open access market

The Convergence of Natural Gas and Electric Power

Natural Gas Pricing and Hedging

• Pricing mechanisms
• NYMEX
• Basis
• Fixed vs. Floating exposures
• After Bid Week
  • Managing daily natural gas exposures
  • Gas Daily swaps
• Physical versus Financial
• Hedging with futures and swaps

Exercises

• Team based quizzes
• Trading simulations
  • Monthly block supply trading
  • Daily portfolio balancing (including storage management)

Some topics covered in this workshop are specific to either the American or Canadian market and will be adjusted as necessary.

TESTIMONIALS

“A must course for any oil and gas professional.” B.O., Brass LNG