Trading Natural Gas: A Nontechnical Guide

ISBN-13: 9781593705039 / Twarda / 2020

Fletcher J. Sturm

Opis

This ""how to"" book covers the various mechanics of natural gas trading, including the physical (cash) market for natural gas production, transportation, distribution, and consumption. It has been 23 years since Trading Natural Gas: A Nontechnical Guide was released, and many things have changed: electronic trading, power market deregulation, fracking and the shale revolution, pipelines reversing flow patterns, and LNG exports from the United States. In this second edition, the author addresses these changes, beginning with a deeper dive into the natural gas market fundamentals of supply, demand, storage, and transportation, maintaining a focus on the relationship to market pricing. Following discussion of the mechanics of trading physical natural gas, the heart of the text remains a study of financial derivative products specific to natural gas trading, presented through definitions and trading examples. Many of these products and concepts are still current and have been refreshed and kept intact. New material on the role of natural gas in the power market as it relates to fuel- switching and economic dispatch, as well as a survey of the global LNG market and US exports, is included in this second edition to bring in two of the biggest factors influencing prices in today's market. Additional statistics, tables, graphs and suggested spreadsheet templates have been provided throughout the book to help visualize many of the discussions on data. Features and Benefits Supply / Demand Fundamentals Market overviews (financial and physical) Contracts Derivatives Technical Analysis Risk Controls Audience Field level personnel Management Energy lending and finance professionals Anyone who seeks to understand how, or relies upon, energy markets Students

Spis treści

• Preface
• Chapter 1 Introduction Industry Segments Natural Gas Act of 1938 The Phillips Decision Natural Gas Policy Act of 1978 Orders 436 and 500 Mega-NOPR
• Chapter 2 The Physical (Cash) Market for Natural Gas Business Activity Supply Supply Data Summary Demand Demand Components Demand Data Summary Storage Physical Transaction Types
• Chapter 3 The Financial Natural Gas Market Value Perceived vs Market ValuePricing and Trading
• Chapter 4 Hedging and Trading Instruments Financial Market Terminology Futures Indexes Swaps Basis Swaps Index Swaps Swing Swaps EFPs Triggers Options Summary of Hedging and Trading Instruments
• Chapter 5 Structured Transactions Buying High and Selling Low for a Profit Hedging Firm Transportation Selling Physical Swing Options to Producers Selling Physical Swing Options to End-users Selling Index Gas with a Cap to a Buyer Hedging and Trading Storage Capacity Buying Gas at a Floating Nearby Futures Price Selling Gas at a Floating Nearby Futures Price Paying a Premium Over Market to a Supplier and Making a Profit Selling at a Discount to Market to a Buyer for a Profit
• Chapter 6 Building a Risk Management Model Centralized Risk Management The Fixed-Price Book The Index Book The Basis Book The Transport Book Organization of Regional Desks Sample Transaction
• Chapter 7 Natural Gas in the Electric Power Market Electricity Market Overview Characteristics of Electric Power Market Fundamentals Managing the Grid
• Chapter Summary
• Chapter 8 The Liquefied Natural Gas (LNG) Market Terms and Conversions Market Fundamentals LNG Trading
• Conclusion