An Interactive 5-Day Training Course
Price Risk Management in the Energy Industry
Valuation and Trading in an Uncertain Market
Course Overview
Virgil famously wrote “Fortune sides with him who dares”, meaning rewards often go with risk. Today, global energy markets are shifting. Energy price hikes and dives send shockwaves across industry and affect businesses. To make good business decisions, we need to first understand the uncertain energy prices.
This Price Risk Management in the Energy Industry training course introduces the audience to commodity risk management in the energy markets. It highlights the dynamics of oil and gas markets and discusses the insights we gain from these markets to make better business decisions. Our focus would be on key insights that support management of risk for major decisions in the energy business.
This Price Risk Management in the Energy Industry training course will highlight:
- The energy landscape and the dynamics of energy commodities
- Global crude oil market and regional natural gas markets
- Modelling risk and uncertainty in energy prices
- Management of risk and the role of forecasting
- Emerging trends: electricity, weather, and emission markets
Training Outline
DAY 1: An Overview of the Energy Industry
- A brief history of the energy industry, fossil resources versus emerging renewables
- Energy market dynamics: crude oil, natural gas, and their products
- Other sources of energy: revisiting Fossil fuels versus renewable energy and future trends
- The supply and demand forces in the energy markets
- Reserve estimation and global reserves of oil and natural gas
- Uncertainty and risk in prices of energy commodities
DAY 2: Global and Regional Energy Markets
- The formation of the energy commodity markets
- The value chain for energy projects
- Price trends and insights for business decisions
- Project value drivers
- Market instruments that support risk management
- Lessons learned from the oil and gas industry
DAY 3: Uncertainty and Risk in Energy Prices
- Introduction to corporate finance and the foundation of value creation
- Comparisons across time (time value of money)
- Comparisons across levels of risk (risk premiums)
- Measures of value
- Sensitivity analysis in project appraisals
- Modeling uncertainty and price risk
DAY 4: Managing Market Risk
- Modeling uncertainty of energy prices
- Uncertainty, risk, and the upside opportunity
- Tools of risk management: insurance and hedging
- forward, futures, options, and other derivative contracts
- Arbitrage opportunities and efficient markets
- Case study: Setting-up a crude oil hedge using forward contracts
DAY 5: Analytical Tools and Future Trends
- Implementation of economic thinking in Spreadsheets
- Analysis of cash flows, using risk models to assess the downside
- The markets and the geo-politics of energy
- Practical aspects of petroleum business decisions
- Behavioral aspects of financial decisions
- Heuristics and biases in management decision making
- Emerging trends: environmental concerns and the emission markets, weather derivatives
- Concluding remarks: Does “fortune favor the bold”?
Certificates
- On successful completion of this training course, GLOMACS Certificate will be awarded to the delegates
- Continuing Professional Education credits (CPE) : In accordance with the standards of the National Registry of CPE Sponsor, one CPE credit is granted per 50 minutes of attendance
Accreditation
GLOMACS is registered with NASBA as a sponsor of Continuing Professional Education (CPE) on the National Registry of CPE Sponsors. NASBA have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.
All Training Seminars delivered by GLOMACS by default are eligible for CPE Credit.
Providers and Associations
About Saudi Glomacs
At Saudi GLOMACS, we specialize in delivering world-class training courses in Saudi Arabia and across various international locations. Our training courses are tailored to meet the unique demands of Saudi Vision 2030 and the Human Capability Development Program, focusing on empowering Saudi citizens and enhancing workforce skills. We offer diverse courses spanning leadership, management, engineering, and technical disciplines to cultivate expertise and drive professional growth. Our flexible learning options—whether in-person, online, or in-house—ensure accessibility and convenience for individuals and organizations alike.
With over 30+ years of experience through the GLOMACS global network, we are committed to delivering innovative, results-driven training solutions. Our expert instructors combine industry knowledge with dynamic teaching methods, fostering practical skill development and long-term career success. By choosing Saudi GLOMACS, you're investing in personal excellence and contributing to the Kingdom’s sustainable economic growth and vision-driven transformation.
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