Natural Gas Physical & Financial Markets
May 13, 2020 | Online :: Central Time
This is an Online Course. For the health and safety of our speakers and attendees, we have decided to move many of our events to Online Courses.
If this event is of interest you may also be interested in this related event
Introduction to the Natural Gas Industry, Infrastructure and Regulations, May 12, 2020, Online
Introduction to the Liquefied Natural Gas (LNG) Industry, May 14-15, 2020, Online
This course will present an overview of physical and financial natural gas markets. Attendees will review natural gas market basics, including terminology, concepts, and the mechanics of physical natural gas trading. They will discuss the role of NYMEX Natural Gas Futures Contract in determining the value of physical natural gas. Our expert instructor will provide an in-depth understanding of gas indices, fixed price, and physical basis deals. He will address major trends on how sellers and purchasers price physical natural gas. Attendees will gain an understanding of where to find price information, what affects prices, and the role of the natural gas index publishers. They will leave the course with the ability to assess the importance of liquidity in physical natural gas markets and review considerations used to determine whether or not to hedge. The course will discuss the role of FERC, the Commodity Futures Trading Commission (CFTC), states, and other participants in regulating natural gas markets. The course will conclude with a discussion regarding where natural gas markets are headed.
The intent is that participants will be able to apply the information learned the first day they return to their jobs. Hands-on activities will be included throughout the day.
- Discuss an overview of physical and financial natural gas markets and their key differences
- Explain the role of NYMEX Natural Gas Future Contract in determining the value of physical natural gas
- Review natural gas market basics, including terminology, concepts, and the mechanics of physical natural gas trading
- Express where physical natural gas can be bought and sold
- Discuss gas indices, fixed price, and physical basis deals
- Address major trends on how sellers and purchasers price physical natural gas
- Describe where to find price information and what affects prices
- Explain the role of the natural gas index publishers
- Assess the importance of liquidity in physical natural gas markets
- List the major players of physical natural gas markets
- Review considerations used to determine whether or not to hedge
- Describe the role of FERC, the Commodity Futures Trading Commission (CFTC), states, and other participants in regulating natural gas markets
- Discuss where natural gas markets are headed
EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET). In obtaining this accreditation, EUCI has demonstrated that it complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.
EUCI is authorized by IACET to offer 0.7 CEUs for this event.
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 Level: Beginner
Delivery Methood: Group-Live
Advanced Preperation: None
EUCI 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.
Requirements for Successful Completion of Program
You must be logged in for the entire presentation and send in the evaluation after the online course is completed.
Case studies, PowerPoint presentations, classroom exercises
Wednesday, May 13, 2020
9:00 – 9:15 a.m. :: Login and Welcome
9:15 a.m. – 4:30 p.m. :: Course Timing
12:30 – 1:15 p.m. :: Lunch Break
- Geopolitics and Social Media
- Where are natural gas prices headed?
- Crude oil, NGL, and gas production effects
- Gas processing and pipeline constraints
- U.S. exports to Mexico and global markets by LNG companies
Other Drivers of Natural Gas Prices
- Infrastructure constraints
Physical & Financial Natural Gas Markets
- Regional Gas Markets
- NYMEX at the Henry Hub
Kinds of Transactions
Physical Natural Gas: Buying and Selling
- Where can physical natural gas be bought and sold
- Bidweek (next month gas)
- Daily gas (next day gas)
- Weekend gas
- Firm and interruptible pipeline transportation nominations
Physical Natural Gas Pricing and Indexes
- Fixed price deals
- Kinds of Indexes
- Index Developers
- How indexes are calculated
- How indexes are used
Financial Markets: NYMEX Natural Gas Futures Contract and ICE Look-Alike Futures Contract
- Contract specifications
- Key differences
- Role of NYMEX Natural gas futures settlement during bid week in setting gas prices
- How Settlement of the NYMEX affects physical daily and monthly gas indices
Natural Gas Basis
- What is basis?
- What causes basis
- Using basis when buying and selling gas
Natural Gas Market Basics & Terms
- Bulls and Bears
- Going Long and Shorting the Market
- Mechanics of physical natural gas trading
- Role of: Intercontinental Exchange and CME ClearPort
- Voice brokers
Hedging with Physicals and Futures
- What is hedging
- Hedging and Risk Management
- Why do financial hedges
- To hedge or not to hedge- and how much?
- Long Hedgers and Short Hedgers
- Hedging for natural gas producers and purchasers with examples
Natural Gas Options
- Buying and selling options
- Anatomy of an option
- Call options vs Put Options
- Speculating and hedging with gas options
- Examples of how to hedge with options
Natural Gas Swaps and Hedging Basis
- Defining Swaps
- Basis Swap
- Index Swap
- Swap dealers
- Key differences between futures and swaps and related costs
Natural Gas Markets: Regulatory Perspectives
- Who’s watching the natural gas markets for manipulation?
- FERC, CFTC, states
- What gets FERC’s attention in the natural gas markets?
- How FERC performs oversight and surveillance of the natural gas markets
- FERC’s hotline and its role in preventing market manipulation
- Fines and penalties
Natural Gas Markets and Decarbonization
- Climate Change
- Presidential Election and Ban on Fracking
- Environmental regulation
- Keep it in the Ground and the New Green Deal
- Carbon Capture, Use and Storage
- Blue and Green Hydrogen
Tom Russo, Principal, Russo on Energy LLC
Tom Russo is an Energy and Environmental expert with unique FERC regulatory skills in siting hydropower, 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 hydropower licensing, NEPA environmental impact assessment of energy projects, business process reengineering, and natural gas and crude oil market oversight. Mr. Russo thoroughly understands the Natural Gas Act, Natural Gas Policy Act, Federal Power Act and Energy Policy Act as they apply to natural gas and hydroelectric projects.
He is very active in hydropower and natural gas matters and writes an Energy and Environmental column for the Natural Gas and Electricity Journal. He also co-authored for the R Street Instiute entitled “Ebbing the flow of hydropower red tape.”
Mr. Russo is a native of Brooklyn, New York. He earned a credential as a Certified Information Systems Security Professional (CISSP) in 2010. He also graduated with a MBA in Finance from the George Washington University and a MS in Biology from the University of Alabama.
Our courses are designed to be the best possible use of your valuable time – get the information you need to improve your position in the market in an interactive, dynamic format.
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.
- 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.