Natural Gas Physical & Financial Markets
October 17, 2018 | Denver, CO
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 Future 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, Commodity Futures Trading Commission, 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, Commodity Futures Trading Commission, 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.
Requirements for Successful Completion of Program
Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.
Case studies, PowerPoint presentations, classroom exercises
Wednesday, October 17, 2018
7:30 – 8:00 a.m. :: Registration and Continental Breakfast
8:00 a.m. – 4:00 p.m. :: Course Timing
12:00 – 1:00 p.m. :: Group Luncheon
How Oil, NGL and Gas Prices are Affecting the Industry
- Where are natural gas prices headed?
- Why crude oil, NGL, aging infrastructure and environmental factors are important
- Shale 2.0
Physical and Financial Natural Gas Markets
- Key differences
- Liquidity in physical markets vs. financial markets
- Role of clearing in natural gas markets
Physical Natural Gas: Buying and Selling
- Where can physical natural gas be bought and sold
- Bidweek (next month gas)
- Daily gas
- Weekend gas markets
Natural Gas Pricing
- How is natural gas priced?
- Natural gas indices
- Fixed price deals
- Physical basis deals
- Role of index publishers and price discovery
- WebICE electronic platform
- What do index publishers use to calculate indices
- Major trends on how sellers and purchasers price physical natural gas
- Gas and electric coordination
NYMEX Natural Gas Futures Contract and ICE Look-Alike Futures Contract
- What are these and how do they differ
- 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 Market Basics
- Mechanics of physical natural gas trading
- Role of: Intercontinental Exchange and Natural Gas Exchange (NGX)
- Voice brokers
- Firm and interruptible pipeline transportation nominations
Hedging with Physicals, Futures and Swaps
- How to physically hedge natural gas with firm transportation, storage, LNG, peak shaving plants, and take and release contracts
- To hedge or not to hedge- and how much?
- Hedging for natural gas producers and purchasers with examples
- Key differences between futures and swaps and related costs to hedge
Natural Gas Markets: Regulatory Perspectives
- Who’s watching the natural gas markets for manipulation?
- FERC, Commodity Futures Trading Commission, States
- What gets FERC’s attention in the natural gas markets
- How FERC performs over sight and surveillance of the natural gas markets
- FERC’s hotline and its role in preventing market manipulation
- Fines and penalties assessed by FERC
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.
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