Advanced Energy Finance Analytics
Corporations involved in the energy sector need executives who understand the extreme volatility of global energy markets and how to manage the financial risks created by changing energy prices.
This Advanced Energy Finance Analytics is designed to give the participants an in-depth understanding of energy finance by addressing three areas of finance in an energy context: Pricing, asset valuation and risk management. This training course will increase your comprehension of the energy markets, as well as demonstrate how to model and forecast energy and forward/futures prices.
It will build knowledge of energy-related derivatives, including the different derivative products and how to apply them in the energy markets to develop hedging and risk management strategies.
COURSE OBJECTIVES
- Use financial models to analyze and forecast energy prices; extrapolate forward prices beyond the liquidity tenor
- Understand the risk of and return from futures and options contracts on energy commodities
- Manage and optimize their corporations’ energy risk exposure
- Estimate and calculate volatility in energy prices
- Apply option valuation techniques to the energy markets
- Understand and use derivative products to mitigate energy price risk; use structured products to enhance firm value; understand exotic structures unique to oil (e.g., average option) and gas and power (e.g., swing options, weather derivatives)
- Utilize real options theory to value energy assets; use information from futures/option prices to make optimal production decisions: Optimal timing for extraction, the optimal rate at which to extract oil (gas) from a field; value oil fields, pipelines, and storage facilities, power plants
- Apply Value-at-Risk to the energy industry