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

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

GARP (Global Association of Risk Professionals)

ISBN: 978-0-470-44782-6

Dec 2008

140 pages



GARP's Fundamentals of Energy Risk Management introduces investors to the basic components and some of the basic terminology used in the energy industry. It covers the commodity cycle, energy use and sources, and various risk types, various energy products and the markets where energy is traded. It also introduces certain risk management fundamentals and real option thinking. The book is GARP's required text used by risk professionals looking to obtain their Certificate in Energy Risk Management.

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.