Energy Markets: Price Risk Management and Trading

by Tom James

Overview

Price Risk Management and Trading.

Energy risk management expert, Tom James, does it again. His latest book is a timely addition to the rapidly developing energy trading markets. This book should be on every energy trader, risk manager and corporate planer's desk. it is an easy read as Tom goes into great detail to explain the intricacies of this market and its various unique elements. - Peter C. Fusaro, Chairman, Global Change Associates Inc., Best-selling Author and Energy Expert

This sensible and practical guide is essential for those seeking an understanding of commerce in energy derivatives. beyond merely informative, this hand book for the practitioner details the finer points of the use of derivatives as tools for price-risk management. No energy trading desk should be without it. - Ethan L. Cohen, Senior Director, Utility and Energy Technology, UtiliPoint International Inc.

Energy markets are much more volatile than other commodity markets, so risk mitigation is more of a concern. Energy prices, for example, can be affected by weather, geopo9litical turmoil, changes in tax and legal systems, OPEC decisions, analysis' reports, transportation issues, and supply and demand - to name just a few factors. Tom James's book is a practical guide to assessing and managing these risks. It is a must-read for senior management as well as risk and financial professionals.- Don Stowers, Editor, Oil & Gas Financial Journal

This book is the most comprehensive on price risk management-centric efforts. It provides the reader with a tangible experience of derivatives in today's capital and energy markets. The breadth and scope of the passages are immense, in that both developed and developing countries' energy markets are considered and examples applied. Terrific read! - Rashpal Bhatti, Marketing Manager, Energy Trading Asia, Enron/BHP Billiton

Tom James has simplified the intricacies of a very complex market. In this new market of "hot" commodities, he has been able to give a fresh course to those who are new to the energy markets and a solid review for those that are well seasoned. he covers everything within the oil market from A to Z in this book and does it well. Coming from a financial background myself, it's good to finally find a book that can bring a better understanding to the field of energy commodities. - Carl Larry, Vice President Citi Energy Global Commodities

Product Details

ISBN-13:	9781118580479
Publisher:	Wiley
Publication date:	11/27/2012
Series:	Wiley Finance
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	250
File size:	4 MB

About the Author

Professor Tom James has been involved in energy and commodity markets since 1989 and is an internationally know business architect, leading market analyst, and trader in the commodity sector within top tier financial institutions. he is currently Head of Commodity Trading for the firm Liquid Capital (www.liquidcapital.com). before joining Liquid Capital in July 2007, he was acting as an advisor to numerous energy firms in Asia and Europe and prior to this he held positions as Director for the Commodity Derivatives Groups at the Bank of Tokyo Mitsubishi, Director of Traded Energy Markets at Credit Agricole Indosuez and as Asia Pacific Regional Head for Commodity Derivatives at Credit Lyonnais (Singapore).

His publications include Energy Price Risk (Palgrave Macmillan, 2003), which has been published in English, Chinese and Russian, Energy Hedging in Asia (Palgrave Macmillan, 2005), and Energy & Emissions Markets (John Wiley & Sons, 2006). He was a contributor to Agribusiness & Commodity Risk Strategies (Risk Books, 2003) and the Professional Risk Managers Association's book on Energy & Environmental Markets (PRMIA, 2007).

Table of Contents

Introduction vii

1. Risk Management in Energy Markets 1

2. The Energy Derivatives Markets 9

3. Energy Futures Contracts 27

4. Pricing Middle East Crude in the Next Century 73

5. Emissions Trading — Towards a Global Carbon Market 117

6. Options Trading and Hedging Application Strategies 135

7. Energy Option-pricing Models 157

8. Value at Risk and Stress Testing 163

9. Questions to Ask When Establishing a Risk-Management or Trading Program 175

10. Management Controls 179

11. Derivatives Controls & Usage Statement and Control Infrastructure 201

12. OTC Derivatives Legal Documentation 213

13. Energy-Market Hedging Scenarios 249

14. Key Technical Analysis for Energy Futures Markets 269

15. Operational Risk and its Management 305

16. A Practical Guide to Credit Control and Risk-Mitigation Methods 315

17. Accounting for Energy Derivatives Trades 343

Index 357