A Non-Technical Guide To
Energy Commodity Trading
Why did crude oil shoot to record high prices in
How does natural gas get to market?
What are the supply/demand factors that impact
How can I manage price risk in these volatile times?
What happened at Enron?
you work in the energy business, you may not understand the
ups and downs of oil and gas prices. Energy terms can sound
like a foreign language and watching the ranting antics of
traders on the floor of the NYMEX doesn’t make a lot of
sense. How do you sort out the complexities of market
dynamics and pricing in the energy business?
be better at your job in the energy industry if you
understood how natural gas gets to market, what supply and
demand factors impact prices or the difference between
“financial” and “physical” trading? Maybe you are just an
investor wanting to better understand what impacts your
financial portfolio and whether you should be investing in
energy stocks (funds or direct company stocks?). Designed
to demystify the world of energy commodity trading—this
course will benefit the employees of companies who produce
or consume energy commodities.
Long-time physical and financial natural gas
Trader, and TU Adjunct
professor, Tom Seng, will share the secrets of how oil and
gas trading really works in language you can understand.
Learn the tools to manage price risk in a volatile market.
Enhance your understanding of the markets and improve your
decision-making in the energy industry.
completion of the seminar, participants will understand:
"wellhead-to-burnertip" path for natural gas.
Supply and market
areas of the US and the interstate pipeline grid.
dynamics that impact energy commodity prices.
for natural gas and crude oil.
The New York
Mercantile Exchange contracts for natural gas and crude.
Ways energy financial
derivatives are used to mitigate market price risk for
both producers and end-users ("Hedging").
Natural gas marketing
This course will also
How do energy commodity
prices affect my company and my wallet?
What is risk control and "mark-to-market" and, why are they
What does the future US supply of energy look like?
How does my gas company arrive at the price they charge me?
What is "financial" vs. "physical" trading?
As a producer, how can I protect myself from a volatile
As an end-user, how can I guarantee a supply at a price that
works for me?
What is "hedging" and who would benefit from it?
What is the difference between "futures" and "forwards"?
What are "options" and how are they used?
What is the "over-the-counter" energy market?
What are some types of "alternative" energy?
President of BME Energy Consulting, LLC, Tom provides
numerous services to oil and natural gas producers and
end-users. With more than 30 years in the energy industry,
Tom has an in-depth background in both the physical and
financial marketing and trading of natural gas and natural
gas liquids (NGLs) in the midcontinent and western regions
of the US.
He has directed the commercial marketing of transportation
and storage services and regulatory compliance activities at
both inter- and intra-state pipeline companies initiated
risk control programs at three different energy companies.
In addition, Tom designed, developed and teaches an “Energy
Trading & Marketing” course, the first of its kind to be
taught at any four-year university in the country. It is an
upper-division class for the undergraduate degree in
Energy Management in the TU Collins College of
Target audiences how they may
Accountants/CPAs - gain
knowledge and comprehension of energy transactions
(Internal/External) - deepen understanding of both
physical and financial energy trades for enhanced review
and testing of hedge "books" as well as, evaluation of
risk controls and procedures.
Middle Management -
increase overall industry knowledge base to more
effectively oversee marketing and trading operations and
provide career advancement.
Attorneys - learn detailed
aspects of the natural gas industry to better serve
energy clients and in handling energy-related cases.
Administrators - discover the importance of their role
in the overall transaction chain.
Energy Schedulers - gain
understanding of the total transaction from start to
finish including the impact of transportation rates and
Bankers - assessing the
company value for capital investment.
Energy Industry Engineers
and Geologists - expand knowledge from exploration to
Anyone wanting to unlock
the "mysteries" of energy commodity trading: "would-be"
traders, recent college graduates looking to enter the
industry, current energy employees wishing to change
Energy Company Executives
- gain an understanding of the specifics of financial
trading in order to better review company uses/abuses of
What people say about Tom’s
“Tom’s years of experience and immersion in natural gas
marketing enabled him to deliver a built-from-the-ground-up
foundation on the fundamentals of energy trading. Tom
identifies and explains the building blocks needed to
understand the workings of the market: NYMEX pricing,
industry publications, pipeline transportation, gas storage,
index postings and the vagaries of the cash market. For the
newcomer, it’s a thorough and valuable overview of the
industry. For the more experienced marketer, it’s a great
review of a complicated and dynamic industry. Would
definitely recommend to others….and would advise them to
come ready to take notes and ask questions.”
John D. Points
Seminole Energy Services