Oil Physical and Financial Markets

Oil Physical & Financial Markets

February 8, 2022 | Online :: Central Time

Overview

The Oil Physical & Financial Markets course will present an overview of how the physical and financial oil markets price, domestic and global crude oil, and refined petroleum products. The program will kick off with an overview of how geopolitics, climate change, and COVID-19 are affecting oil markets and some of the pricing drivers (i.e., drilling rigs, storage, infrastructure, exports, pipeline constraints, speculation, etc.) and transition all the way through transactions, price benchmarks, energy derivatives, and regulatory oversight. The agenda will go on to detail market participants, NYMEX and ICE oil futures, price discovery, trading, swaps, and options.

Once the day concludes, attendees will have gained an extensive knowledge of everything from basic terminology and concepts to hedging and speculating. The intent is that participants will be able to apply the information learned the first day they return to their jobs. Hands-on activities and open discussion will be included and encouraged throughout the day.

Learning Outcomes

  • Introduce market terminology and identify how oil markets are affected and what drives oil prices (i.e., drilling rigs, storage, constraints, petroleum reserve, speculation, etc.)
  • Review physical and financial oil markets and understand price benchmarks, futures, swaps and options, and market participants
  • Discuss the types of transactions, clearing, liquidity, and forward contracts
  • Explain physical market pricing and benchmarks and how they are calculated
  • Identify how to buy and sell physical crude oil and associated expenses, including where it can be bought/sold, domestic vs. global pricing, and waterborne transactions
  • Discuss the mechanics of trading futures and options and the concepts of hedging and risk management
  • Discuss the regulation of national and international oil markets, including safety oversight, manipulation, fines, and penalties

Agenda

Tuesday, February 8, 2022 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:30 – 1:15 p.m.
Lunch Break

9:00 a.m. – 5:00 p.m.
Course Timing

 

Introduction

  • Geopolitics, Climate Change, and COVID-19
  • Where are Crude Oil Prices Headed?
  • OPEC+ and Oil Choke Points
  • Crude Oil, NGL, and Gas Production Effects
  • Gas Flaring and Pipeline Constraints
  • US Oil and Refined Petroleum Product Exports

Other Drivers of Oil Prices

  • Oil Storage
  • Infrastructure constraints
  • Strategic Petroleum Reserve
  • International Maritime Organization

Physical & Financial Oil Markets

  • ICE and NYMEX Crude Oil Benchmarks and Futures
  • Physical Global Crude Oil Benchmarks
  • Refined Petroleum Futures and Benchmarks
  • Market Participants
    • Energy Traders
    • Oil Companies
    • Financial Institutions
    • Transportation Companies

Kinds of Transactions

  • Forward Contracts by Pipeline and Waterborne
  • NYMEX and ICE Futures Contracts
  • Clearing
  • Liquidity
  • Comparing Forwards and Futures

Physical Oil Pricing and Indexes

  • Price Discovery
  • Price Reporting Agencies (Platts, Argus, ICE)
  • How Price Benchmarks are Calculated

Physical Crude Oil: Buying and Selling

  • Where Can Physical Crude Oil Be Bought and Sold?
  • What’s Used to Price Domestic and Global Crude Oil?
  • Firm and Interruptible Pipeline Transportation Nominations
  • Waterborne Transactions:
    • Export Terminal Fees
    • Vessel Charter Rates
    • Insurance
    • Canal Transit Fees

Oil Market Basics & Terms

  • Bulls and Bears
  • Going Long and Shorting the Market
  • What Buying and Selling Futures Means
  • Open Interest & CFTC Commitments of Traders Report

Speculating with Oil and Refined Petroleum Product Futures

  • Mechanics of Trading Futures
  • Margin Requirements

Hedging with Physicals and Futures

  • What is Hedging?
  • Hedging and Risk Management
  • Financial Hedges
  • To Hedge or Not To Hedge—And How Much?
  • Long Hedgers and Short Hedgers—Determining Your Natural Position
  • Hedging for Oil Producers and Purchasers with Examples

Hedging with Oil Options

  • Definition of Options and Why They Are Popular
  • Anatomy of An Option
  • Buying and Selling Options
  • Call Options vs Put Options
  • Hedging with Oil Options
  • Speculating with Oil Options
  • Example of How to Hedge with Options
  • Comparison of Future and Options

Hedging with Swaps

  • Definition of Swaps and Why They Are Popular
  • Anatomy of A Swap
  • Who Are the Counterparties
  • Buying and Selling Swaps
  • Hedging with Swaps
  • Speculating with Swaps
  • Example of How to Hedge with Swaps
  • Comparison of Swaps and Futures

Oil Markets: Regulatory Perspectives

  • Oil Pipeline Safety Oversight
  • Who’s Watching the Oil Markets for Manipulation?
  • International Organization of Securities Commissions
  • Fines and Penalties

Workshop

The Future of the Oil Industry

Wednesday, February 9, 2022 : Central Time

This workshop is designed to provide attendees with further insight into where the industry is going in regards to political, economic, and international considerations and constraints. This is an interactive event, during which we will be utilizing real-time data and attendees are expected to bring stories, concerns, and questions to the program. Other topics of discussion besides what are noted in the agenda are encouraged as well.

Although this workshop is paired after Introduction to the Oil Industry, Infrastructure & Regulations and the Oil Physical & Financial Markets programs, it is not required to attend these programs in order to attend this workshop.

Requirements for Successful Completion of Program 

Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

Instructional Methods

PowerPoint presentations, group discussions, and active participation.

Who Should Attend

New Oil Industry Employees, Energy Industry professionals, Gas Industry professionals wanting to learn more about the oil industry

 

Agenda

8:45 – 9:00 a.m.
Log In

9:00 a.m. – 1:00 p.m.
Workshop Timing

 

  • This Week’s Oil Prices and Drivers—And Is US Shale Back?
    • Supply side: The US and Canadian drill rig and production trends
    • Storage and SPR
  • What’s OPEC+ Up To?
    • Iran and Venezuela
  • Demand-Side: Comparison of Demand Today and COVID-19
    • Is the US back or is COVID-19 still affecting demand?
  • Status of EU and Asia Economic Recovery
    • Post-COP16 (Conference of the Parties 16)
    • IMO proposals on bunker fuel
  • Biden Administration and US Shale
    • Glas flaring and drilling on federal lands
    • Wall Street’s influence on US shale
  • What Are the Effects on Oil Exports?
    • New pipelines
    • Refinery output
    • Export terminals
  • Where’s the Industry Headed?
    • Crude oil to petrochemicals

 

Instructors

Pete Berzins, Senior Director—Oil & Gas, TTL

Pete Berzins has broad experience in various sectors of the energy Industry. This includes project management and design from preliminary engineering report (PER) preparation to design of meter stations, compressor facilities, processing plants, pipelines containing natural gas or liquid petroleum products, HDD’s, and underground utilities. Mr. Berzins has also performed specification preparation, subcontractor oversight, utility coordination, inspections, and construction oversight/support.

Mr. Berzins has received a BS in Mechanical Engineering from Georgia Institute of Technology and an MBA in Finance and International Business from University of Houston.


Tom Russo, President, Russo on Energy, LLC

Tom Russo is an Energy and Environmental expert with unique FERC regulatory skills in oil, natural gas and liquefied natural gas infrastructure, NEPA environmental impact assessment and in how energy markets, prices and physical/cybersecurity affect infrastructure investments.

Prior to founding Russo on Energy LLC in May 2015, Mr. Russo worked for over 30 years as a Manager and Sr. Energy Industry Analyst at the Federal Energy Regulatory Commission (FERC). During that time, he amassed experience in the natural gas and crude oil markets and its regulation by the FERC. Mr. Russo thoroughly understands the Natural Gas Act, Natural Gas Policy Act, and Interstate Commerce Act which are applicable to natural gas and oil pipeline transportation.

Mr. Russo is also an adjunct professor at the George Washington University’s Elliott School of International Affairs. He teaches Global Energy Markets and Global Energy Security to undergraduate and graduate students. He actively conducts independent research on oil, natural gas, and power matters and writes an Energy and Environmental column for the Climate & Energy Journal.

Instructor

Tom Russo, President, Russo on Energy, LLC

Tom Russo is an Energy and Environmental expert with unique FERC regulatory skills in oil, natural gas and liquefied natural gas infrastructure, NEPA environmental impact assessment and in how energy markets, prices and physical/cybersecurity affect infrastructure investments.

Prior to founding Russo on Energy LLC in May 2015, Mr. Russo worked for over 30 years as a Manager and Sr. Energy Industry Analyst at the Federal Energy Regulatory Commission (FERC). During that time, he amassed experience in the natural gas and crude oil markets and its regulation by the FERC. Mr. Russo thoroughly understands the Natural Gas Act, Natural Gas Policy Act, and Interstate Commerce Act which are applicable to natural gas and oil pipeline transportation.

Mr. Russo is also an adjunct professor at the George Washington University’s Elliott School of International Affairs. He teaches Global Energy Markets and Global Energy Security to undergraduate and graduate students. He actively conducts independent research on oil, natural gas, and power matters and writes an Energy and Environmental column for the Climate & Energy Journal.

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time.
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Register

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

Event Standard RateAttendees
Single Connection - Oil Physical & Financial MarketsUS $ 795.00
Pack of 5 connectionsUS $ 3,180.00
Pack of 10 ConnectionsUS $ 5,565.00
Pack of 20 ConnectionsUS $ 9,540.00
Call us at 303.770.8800 if you have any specific questions on the volume discounts
* all other discounts do not apply to license packs

This event has the following workshops:

The Future of the Oil IndustryUS $ 495.00
Pack of 5 ConnectionsUS $ 1980.00
Pack of 10 ConnectionsUS $ 3465.00
Pack of 20 ConnectionsUS $ 5940.00

This event has the following related events:

Introduction to the Oil Industry, Infrastructure & RegulationsUS $ 795.00
Pack of 5 connectionsUS $ 3,180.00
Pack of 10 ConnectionsUS $ 5,565.00
Pack of 20 ConnectionsUS $ 9,540.00

By registering I indicate I agree with EUCI's privacy policy and understand I may receive emailed reports, articles, event invitations and other information related to products and services from EUCI and any of our business partners. I understand I may unsubscribe at any time by clicking the link included in emails.

Take advantage of these discounts!

  • Attend the Course and Introduction to the Oil Industry, Infrastructure & Regulations and 1 workshop and pay US $ 1,990.00 per attendee (save US $ 95.00 each)
  • Attend the Course and Introduction to the Oil Industry, Infrastructure & Regulations and pay US $ 1,495.00 per attendee (save US $ 95.00 each)
  • Attend the Course and workshop and pay US $ 1,195.00 per attendee (save US $ 95.00 each)

Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before January 07, 2022 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

Secured By:

CEUs

Credits

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EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 0.7 CEUs for this event.

Requirements for Successful Completion of Program 

Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

Instructional Methods

PowerPoint presentations, group discussions, and active participation.


Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 8.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Beginner/Intermediate
Delivery Method: Group-Live presented online due to COVID-19
Advanced Preperation: None

CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.

Who Should Attend

New Oil Industry Employees, Energy Industry professionals, Gas Industry professionals wanting to learn more about the oil industry

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