Natural Gas Risk Management

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With a primary focus on emerging trends, this course approaches the natural gas market with a view of the main elements that not only impact price and volatility but also how these elements are part of the tools needed to manage the margins of your specific business.

What You Will Learn

Effective Natural Gas Risk Management will help you understand what market factors impact your margins and why you need to manage your company's risk. You'll examine: Market macro and micro fundamentals • Natural Gas purchasing and selling methodology • Processing and marketing • Futures and options for natural gas risk management • Over-the-counter swaps, options, forwards for natural gas risk management and trading • Techniques to put all of the above pieces together.

 

Topics covered include:

  • Establishing a Futures Account.
  • Establishing an OTC account.
  • Establishing relationships with all suppliers.
  • Designing a Risk Management Program.
  • Defining the hedge objectives of your company.
  • Determining the hedge strategies for your company.
  • Understanding the daily Marked to Market.
  • Monitoring and adjusting your hedge strategy.
  • Designating individual(s) responsible for hedging.
  • Defining your price/margin exposure.
  • Quantifying the volume of natural gas.
  • Qualifying the mix and quality of natural gas.
  • Reviewing the structure of your supply contracts.
  • Assessing the risk profile of your company.
  • Establishing your corporate risk policy.
  • Obtaining board approval of risk policy.

Who Should Attend

This course is designed for utilities, major oil and large independent processors, marketers, government agencies, end users, purchasers with responsibility for managing natural gas risk, futures and OTC Brokers.