The life of an energy markets analyst

If any of you have read my previous topics, I've been looking at a way to transition from the commercial banking graduate role (transactions DCM, which I would still be very interested in but I think would be a (big) stretch.

However, I'm at a BB with a sizable commodities division. Their energy markets team may be reachable for me: in college I interned on the commodities desk of my country's main derivatives brokerage, and also in the derivatives trading team of a major energy company. I also somewhat specialized in energy economics at college: acing several classes on it and winning an energy markets case competition.

The energy markets team services clients (I assume institutional) with energy market exposure, providing risk management, financing, etc. It is not part of the IBD, so I assume they don't do M&A, ECM or DCM for energy clients but they probably work alongside the analysts who do.

Could someone please elaborate on this role, for example on:
a) Hours
b) Comp
c) Exit opps

Thanks!

 

Personally I think energy sucks, power/industrials/utilities is better (here comes the monkey shit for the honest opinion).

I think energy is the one of the worst parts of finance and if you're not in IBD within 1-2 yrs of undergrad I think you're better off exploring other options.

Why does energy suck? Because it's so unrelated to everything and doesn't seem to require much deep thinking or analysis. How applicable and relevant do you think energy is to most jobs? Even in finance? Even if it is, how interesting do you think it will be? If you do energy now, you will do it for life.

Let me hear you say, this shit is bananas, B-A-N-A-N-A-S!
 

Thanks for the answer. Always appreciate an honest opinion. I'm just impatient as hell to break out of commercial banking, and thought my energy experience might help. If you have any other suggestions as to how I can achieve this, I'm all ears. Been in the role one month, hoping to be out within twelve.

 

I wouldn't think too much about getting into IB. It's really difficult to break in (best shot is undergrad). If you're exceptional enough to break in, then you can be exceptional right where you are.

Enjoy what your working on and kill it inside or outside of work. You don't need to work at BB to do something special.

Success will come.

Let me hear you say, this shit is bananas, B-A-N-A-N-A-S!
 
Best Response
xgozax:

Personally I think energy sucks, power/industrials/utilities is better (here comes the monkey shit for the honest opinion).

I think energy is the one of the worst parts of finance and if you're not in IBD within 1-2 yrs of undergrad I think you're better off exploring other options.

Why does energy suck? Because it's so unrelated to everything and doesn't seem to require much deep thinking or analysis. How applicable and relevant do you think energy is to most jobs? Even in finance? Even if it is, how interesting do you think it will be? If you do energy now, you will do it for life.

By "energy", you mean upstream E&P. Power, industrials (in some cases), and utilities all fall within the broader realm of energy.

That being said, you are generally correct in saying that upstream-specific finance knowledge is not as applicable to general finance as knowledge gained from other industries. However, saying that it requires little "deep thinking or analysis" is a fucking dumb statement to make (no, I don't work at an upstream-focused PE fund).

Also, FYI, power / utilities is similar in that it is also extremely specialized. Just like in upstream, you're essentially investing in an asset (i.e. a power plant) and not in operating companies. You really don't have any idea what you're talking about.

Edit: lol yep. checked your post history. you're still in college. shut the fuck up. take the opportunity to learn from the people on this website who are actually knowledgeable about things instead of spewing misinformation.

 

Hi,

Noticed you trade physical and was wondering if I could ask you a few questions.

I currently work in equity research at an IB covering the oil majors. For a number of reasons I've decided it's not really for me and am looking for alternative careers, although this will likely be in a year or two.

Questions:

How transferrable will my current skillset be in a physical trading career? Given I cover the integrated oils, I get very good exposure to downstream, petchems and lng as well as upstream. I also have a technical Chem Eng background.

What level would I expect to enter at having 2ish years of research experience?

What initial comp and progression can I expect? Seems to my understanding that I will probably take a cut until I land a junior trader role.

Cheers,

 

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