Energy PE vs Crude/Products Trading Decision

Have an opportunity to go into both - energy PE and crude oil / distillates trading on a physical / financials desk - both decently well known firms.I know they are very different jobs and I think they are both interesting for different reasons.

From what I've seen, from a comp perspective, in trading, if you're good you get paid and don't have to worry about carried interest.

Additionally, the traders seem sharper than the PE guys and I find the nitty gritty in the weeds of understanding S&D's and granular drivers of markets interesting.

On the flip side, PE seems much more "doable," easier to succeed at and overall more "fun" from a deal perspective / high level learning about new businesses and structures.

Comments (8)

Aug 9, 2022 - 1:38pm
oil_quant, what's your opinion? Comment below:

Only you know your specific circumstance, but speaking from an energy trading perspective, there are multiple entry points with way less uniform requirements than PE.  So your odds of moving into trading from PE is higher than vice versa.  You can always do a TDP after a few years of unrelated work experience.  But you can't join a PE firm with a few years of unrelated experience.  Bear that in mind if you want to explore a bit for the first few years.

Aug 9, 2022 - 4:52pm
marcellus_wallace, what's your opinion? Comment below:

Never heard anyone say Traders much sharper, interesting one. The general requirements and academic expectation is much higher in PE. Also disagree with PE being easier than trading to do well, PE is a very tough world and moving up aint easy.

You mention you know they are different jobs but enjoy "s&d" analysis more so think if you like the team, physical makes sense.

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Aug 13, 2022 - 8:48pm
sithlord69, what's your opinion? Comment below:

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