from an article on chron.com
An energy risk management expert told me recently he regularly talks to students who think they'd be great energy traders because "they can just get a good sense of which way prices are going" from watching the markets. It's a ridiculous notion, he says, because the only way to really know is to study all the parts that drive suppy and demand of a commodity, to know the producers, the pipelines, the storage facilities and the end customers. That deep knowledge of the physical side of the business helped make Enron such a formidable trading force years ago and it's likely the reason one of the most successful energy trading shops, Houston-based Centaurus Energy, made a big move into natural gas storage several years ago.
"When they find out what's really involved in energy trading they tend to lose interest," he said.
Very true point. Not so much on the financial side, know people from a Canadian top Math uni who just show up at DRW and trade futures/options in 2 years.
Also I think it goes further these days you need to know the whole energy stack in some areas. Like how power, coal affect natty and vice versa. How Crude production could affect liquids which affects natty....and so on.
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