This comprehensive and clearly explained program is for professionals who are seeking a solid understanding of the structure and workings of the North American and global petroleum industry, the fundamentals of how the physical crude and refined products markets operate in the refining, retail, wholesale, shipping, logistic and storage sectors, and the various methods and financial instruments used to identify and hedge risk and profit from market inefficiencies.

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What You Will Learn:

1. A detailed overview of all the parts of the petroleum industry, its history, its development and its impact on the modern world.
2. How crude oil is formed, found and the various grades and types of crude oil.
3. The overall supply and demand picture of world crude and the international movement of petroleum.
4. How crude oil is produced from deposits, types of drilling techniques, and discussion of on shore and off shore drilling platforms. 
5. The development of oil deposits, enhanced recovery techniques and the life cycle of an oil field.  
6. A detailed overview of refining crude oil into useful products. Including the types of refineries, the internal processes and the resulting refined petroleum products.
7. The different types of storage, logistics, pipelines for crude and petroleum products along the value chain.
8. A detailed overview of the tanker and barge transportation markets, trade routes, vessel nomenclature, freight rates, charter parties, and regulating entities
9. The various physical crude and petroleum markets in North America and globally.
10. The various petroleum financial markets and instruments including the NYMEX and ICE futures exchanges and OTC swaps markets.
11. What basis risk is and how basis and delivery risk can destroy your hedging program.
12. How to structure profitable crude and petroleum product transactions without exposure to price risk, and what “trading around assets” means.
13. A summary of industry clearing procedures and deal contract language.
14. The participants involved in the petroleum industry and its markets.
15. How energy futures and derivatives are impacting the forward petroleum markets.

You Will Also Learn:

1. How basis and spread trading works.
2. Explanation of North American petroleum pipeline trading (“up downs”)
3. How to calculate the carrying costs of inventory and how/when to manage the inventory
4. What the ‘refining crack’ is, calculating the crack and why the value changes
5. The basics of petroleum product specification guarantees, the “seasonality” of these ‘specs’ and where to find them.
6. How to hedge price risk with NYMEX, the ICE and OTC Swaps .
7. A virtual voyage for petroleum products between various regions with an outline of all the necessary transactions/operations involved in the endeavor.
8. How to establish and execute a fully hedged jet fuel program.

Seminar Agenda

Day One

• Brief History of Petroleum
• Crude Oil: its composition, types, reserves and supply.
• Crude Oil: Producing and Consuming Countries - OPEC
• Global Movements of Petroleum
• Formation, Crude Oil Structures (Hydrocarbon traps) and Exploration
• Methods of Finding Crude Oil Reservoirs
• Exploration of Crude Oil – Overview of Oil Derricks Operations and Systems
• Developing Crude Oil Discoveries – the Life Cycle of an Oil Field
• Primary, Secondary Production Techniques and Enhanced Oil Recovery Methods
• Discussion of Various Off Shore Drilling Platforms
• Overview of Refinery Operations: the concept, the methods and the various components of the refining process
• Simple and Complex Refining Operations
• Discussion of the “Crack Spread”
• Petroleum Pipelines (Crude and Product), tariffs, costs and regulatory bodies.
• Types of Storage facilities, racks and truck/rail transportation.
• Maritime Transportation: Tankers and Barges
• Overview of the various physical petroleum markets
• Overview of Physical Market Participants
• Discussion of Physical Market Business/Pricing Models (Platts’, Argus, OPIS, etc.)
• Introduction to Financial Markets and Financial Instruments in Petroleum markets
• What makes a good commodity market
• What makes a good futures exchange market
• The futures contract concept
• How buyers and sellers hedge petroleum price risk with NYMEX/CME futures contracts.
• How to hedge jet fuel price risk with NYMEX/CME heating oil futures contracts.
• What basis is, and what the different types of price spreads are.
• What basis risk is, and how it can destroy your futures hedge.
• How traders "basis trade" and why it works. Discussion of trading petroleum products on Colonial Pipeline

Day Two

• The fundamentals of a cash settled futures exchange such as ICE and how it differs from NYMEX/CME
• The fundamentals of fixed-for-floating swaps, basis swaps, exchange indexed swaps, and contracts-for-differences.
• How institutional energy brokers operate.
• How electronic marketplaces such as ICE and NYMEX's Clearport Services work.
• The carry/contango and inverse/backwardated market structures
• Example/Exercise of Carry Storage Deal and Inverse Inventory Liquidation program
• Example/Exercise of Location Spread (Brent/WTI, heating oil/Gasoil,)
• Example/Exercise of Hedging a Refinery margin using Crack Spreads
• Example/Exercise of Hedging premium grade petroleum products using a combination of basis OTC swaps and futures contracts.
• Exercise of a establishing, pricing and managing a fully hedged jet fuel program.

Your Instructor:

Ed Tweedy is an experienced physical and financial energy trader with over 30 years experience in trading, risk management, shipping and consulting. Recently, Ed was Senior Managing Director of Energy Arbitrage Management an affiliate of MD Sass, a 35 year old +$12 billion multi-strategy hedge fund. He presently is the Principal of Tweedy Associates, an independent consultancy in the energy fields of petroleum, natural gas, shipping, coal, emissions markets and electricity. As a Petroleum, Electricity, Natural Gas Trader at Louis Dreyfus Energy Corp, he devised fully hedged merchandising strategies to support commodity and forward physical (cash) markets trading with refiners, end users, wholesalers and suppliers in New England, the Mid-Atlantic, the Southeast, Europe, South America and Asia . Ed set up fully hedged and integrated physical merchant energy desks in Europe, North American and Central America for petroleum, natural gas/LNG, electricity, freight and coal. Other work experience includes Vice President/Head Trader-Dealer, Sithe Energies: Responsible for establishing Asset Optimization/Proprietary Trading Department following Sithe’s $2.2 Billion acquisition of over 40 generation plants from Boston Edison and GPU fleets, including developing and managing the entire merchant energy/emissions function, Senior Energy Trader and Structured Dealer, Citizens Power, Senior Energy Trader, NorAm Energy/Houston Industries/Reliant Energy and Senior Merchant. Ed brings his trading experiences to the emerging emissions markets and offers timely insights into how to trade emissions while managing emission/fuel risks.

Who Should Attend this Seminar?
Among those who will benefit from this seminar include energy and electric power executives; attorneys; government regulators; traders & trading support staff; marketing, sales, purchasing & risk management personnel; accountants & auditors; plant operators; engineers; tanker charterers and owners and corporate planners. Types of companies that typically attend this program include energy producers and marketers; utilities; banks & financial houses; industrial companies; accounting, consulting & law firms; municipal utilities; government regulators and electric generators.

Prerequisites

This fundamental level group live seminar has no prerequisites. No advance preparation is required before the seminar.

Why Choose PGS?

PGS seminars are known for their clear explanations and in-depth content. Register for a PGS program today, and team up with the leader in electric power and energy education. Join over 10,000 energy and financial professionals who have already attended one or more of PGS's proven courses. View Past Seminar Attendees

Hotel & Seminar Information

This two-day seminar will be held at the location listed below or can be conducted on-site at your facilities. The seminar will start promptly at 8:00 AM and will finish at 4:30 PM on the first day. On the second day, the seminar will resume at 8:00 AM and will finish at 3:30 PM. The program includes continental breakfast, lunch, and coffee/cookie breaks for each day. Attendees also receive a professionally produced seminar manual of over 500 slides that can serve as a valuable office reference. Dress is casual for all seminars. 

Embassy Suites Houston by the Galleria
2911 Sage Road
Houston, Texas 77056
Telephone 1-713-626-5444
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PGS Energy Training has secured a limited number of Embassy Suites t hotel rooms at a special discounted rate. Please dial 1-713-626-5444 and mention the PGS Energy Training event for your discounted rate. Please sign up early to receive your special room rate. This Embassy Suites frequently sells out.

Registration Fee & Discounts

Register Now and invest in your future. The price for this two-day seminar is $1,495 (USD).

• Additional attendees, commission and government employees receive a 10% discount.
   
• Sign up for 4 or more classroom seats during the same month and all attendees will receive a 20% total discount. ( If you plan to register 4 or more classroom seats, but want attendees to pay by separate credit cards, register one party now and mention this fact in the "Comments" section of the registration form. We will manually subtract the 20% discount from the first registrant's seminar fee. Tell other parties in your group to mention your name when they register, and we will give them the 20% discount as well.) Please call 412-521-4737 for more information.
  

Payment & Cancellations

Payment is due prior to the start of the seminar by Visa, Master Card, American Express, Diners Club, or corporate check. Seminar fees will be charged to your credit card at the time of registration unless other arrangements have been made. Please make checks payable to "PGS Energy Training" 43 Fawnvue Drive, Suite 700 • Mckees Rocks, PA 15136. Cancellations can be made up to three (3) business days prior to the start of the seminar for a full refund. No refunds will be made thereafter, but credit will be given toward future workshops. Substitutions may be made at any time. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at 412-521-4737.

CPE Credits

This group live seminar is eligible for 13.0 CPE credits. Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit. As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accept one-half credits.

PGS  Energy Training 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. Complaints regarding registered sponsors  may be addressed to the National Registry of  CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org. CPAs interested in attending any seminars  should contact our offices for details on CPE credits granted and any prerequisite requirements.