How This Seminar Works
	1. This live seminar consists of two 90-minute, high quality conference calls combined with your choice of printed or Internet-posted slides. 2. The day before the seminar, you will be emailed a toll-free telephone number to access the audio portion of the live seminar session. The seminar's slides will be attached to the email as a PDF file, and a Website link will be provided so you can view the slides on the Internet if you prefer. Phone calls originating from outside of the USA and Canada will be a toll call billed to you by your telephone service provider. 3. A few minutes before the seminar is to begin, you will call the toll-free phone number to access the audio portion of the seminar. You can follow the visual portion of the presentation by using the printed PDF files or by viewing the Internet-posted slides on your computer screen. 4. A professional moderator will manage the seminar teleconference and there will be ample opportunity to ask questions. All participants will hear both the question and the instructor's response. After the seminar is over, further questions can be directed to the instructor via email.

An important issue when valuing electric power, natural gas, and petroleum assets is the proper recognition of their imbedded optionality. Because many energy assets include choices for further development, increasing or decreasing output, or the curtailment of operations, the accurate valuation of these assets requires a real-option methodology.

This seminar will present the fundamental principles of real option valuation and will show how these powerful methodologies are being used to value electric generation and natural gas storage assets. (A detailed practical example will be examined). Click Here to Register

What You will Learn (Session #1 from 1:00 pm to 2:30 pm)

	The fundamental definitions and principles of real options, and why real options are being used to value energy assets.
	The difference between financial options and real options.
	Real option solution methods including Black Scholes, Finite Differences, Binomial Trees, and Monte Carlo Simulation.
	How to construct binomial trees for characterizing price movements, and how to fold back the binomial tree for proper option valuation.

What You will Learn (Session #2 from 3:00 pm to 4:30 pm)   How to construct Monte Carlo simulation models.     The difference between Geometric Brownian Motion (GBM), Mean Reversion, and GARCH, and why its important to pick the right model.     How to combine Monte Carlo simulation, forward commodity prices, and log-term production cost model results.     How to use real options to value electric generation and gas storage assets.

Your Instructor

Kenneth Skinner, Ph.D. – Dr. Skinner is Vice President and Chief Operating Officer of Integral Analytics, a retail energy consulting and software development firm focusing on valuation of Demand-Side Management (DSM) programs, customer targeting for marketing and engineering applications, spatial load forecasting and feeder load-at-risk analysis, and traditional market research.  Dr. Skinner has 15 years of energy industry experience including 5 years as a Derivative Structuring Manager for Sempra Energy Solutions, a national energy supplier, focused on developing retail commodity supply strategies including portfolio risk management, hedging strategy, and least-cost supply opportunities.

Having worked with several energy consulting companies including Summit Blue Consulting, RDI Consulting and PHB Hagler Bailly, Dr. Skinner has significant experience in economic analysis and modeling of energy demand, forward energy prices, financial derivatives, transmission and pipeline capacity, natural gas storage, and generation assets using econometric time-series and cross-sectional analysis, statistical methods, optimization principles, real option valuation techniques; Structured valuation of distributed generation and electricity and natural gas commodity transactions, including demand response; Financial risk assessment and valuation of energy hedging strategies and market potential of new business ventures. He is fully trained in econometric methods, engineering principles, organizational development, optimization, and valuation techniques and has extensive experience with various software packages including Visual Basic, C++, SAS, SPSS, Crystal Ball, Matlab, GAMS, IREMM and ProSym.

Who Should Attend this Seminar

This seminar will benefit a wide variety of organizations in the electric power, financial and energy industries. Professionals from banks, energy producers, electric utilities, energy marketers, industrial companies, electric generators, and municipals will gain valuable insights, as will natural gas, oil and electric power executives, traders, marketers, (sales, purchasing & risk management professionals), accountants, economists, trading support staff, auditors, attorneys, government regulators, rate specialists, plant operators, engineers and corporate planners.

Why Choose PGS?

Save time and travel expenses while you increase your knowledge. PGS seminars are known for their clear explanations and in-depth content. Over 3,000 energy and financial professionals have already attended PGS Energy Training's proven courses. View Past Seminar Attendees

Prerequisites

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

Registration Fee