Serving the energy industry for over 30 years
By - Jon Brown

Natural Gas Physical & Financial Markets
August 12, 2020 | Online :: Central Time

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Overview

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, August 11, 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.

Learning Outcomes

  • 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

Credits

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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

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.

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.

Instructional Methods

Case studies, PowerPoint presentations, classroom exercises

Agenda

Wednesday, August 12, 2020

8:45 – 9:0 a.m. :: Login and Welcome

9:00 a.m. – 4:30 p.m. :: Course Timing

12:30 – 1:15 p.m. :: Lunch Break


Introduction

  • 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

  • Weather
  • Storage
  • Infrastructure constraints

Physical & Financial Natural Gas Markets

  • Regional Gas Markets
  • NYMEX Natural Gas Futures Contract at the Henry Hub
  • Global natural gas benchmarks

Kinds of Transactions

  • Forwards
  • NYMEX and ICE look-alike futures
    • Contract specifications
    • Key differences
  • Clearing
  • Liquidity
  • Comparing forwards and futures
  •  

Physical Natural Gas Pricing and Indexes

  • Fixed price deals
  • Daily index prices
  • Monthly index prices
  • Price reporting agencies (Platts, NGI, Argus, ICE)
  • How indexes are calculated

Physical Natural Gas: Buying and Selling

  • Where can physical natural gas be bought and sold
  • How and when indexes are used to price gas
  • What is Bidweek?
    • What happens during Bidweek
    • Settlement of prompt month NYMEX Gas Futures contract
  • Daily gas (next day gas), Intraday (same day gas), and Weekend gas
  • Buying and selling physical gas using index, fixed price, and physical basis
  • Pricing long-term sale and purchase of gas
  • Firm and interruptible pipeline transportation nominations

Natural Gas Basis

  • What is basis?
  • Using basis when buying and selling gas

Natural Gas 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

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 natural gas producers and purchasers with examples

Hedging with Natural Gas Options

  • Definition of options and why they are popular
  • Anatomy of an option
  • Buying and selling options
  • Call options vs Put options
  • Hedging with gas options
  • Speculating with options
  • Example of how to hedge with options

Using Natural Gas Swaps to Hedging Basis

  • Why hedge basis?
  • Defining swaps
  • Basis swaps
  • 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, and ISOs and RTOs
  • 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

Instructor

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.

Online Delivery

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.

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

Event Standard RateAttendees
Natural Gas Physical and Financial Markets - (single connection)US $ 895.00
Pack of 5 connectionsUS $ 4,025.00
Pack of 10 ConnectionsUS $ 6,715.00
For volume discounts call +1.303.770.8800 for quote
* all other discounts do not apply to license packs

This event has the following related events:

Introduction to the Natural Gas Industry, Infrastructure and RegulationsUS $ 895.00
Pack of 5 connectionsUS $ 4,025.00
Pack of 10 ConnectionsUS $ 6,715.00

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 Natural Gas Industry, Infrastructure and Regulations and pay US $ 1,695.00 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 July 10, 2020 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

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