Energy trading

I am currently a third-year undergraduate student in Commerce. I am extremely passionate about Shipping and Physical Commodities. I had applied to Cass's MSc Shipping, Trade, and Finance and have got an acceptance letter. However, I am also interested in History and Economics. I had applied to MSc International Political Economy and MSc Economic History at LSE. I got rejected for MSc IPE and got an acceptance letter for MSc Economic History. I love Shipping, I fell in love with it right after reading lofty tales of Onassis, Niarchos, and Naess but it is an extremely closed and secretive

12 Oct 2021

Hi everyone, I recently interned with a data + analytics provider for the electricity and power markets, and since then I've been extremely interested in a trading job in the field. Coming from a more traditional finance background, it doesn't seem like there's as clear of a career progression/path (at least to me). I'm not sure where I need to be looking in the short term to reach the long term goal of being a trader at a prop shop/HF trading electricity. Any advice on what types of jobs/firms I should be looking at for graduation would be much appreciated. Additionally, any information on

18 Jul 2021

Hello, I'm pretty deep in discussions with a US BB investment bank about joining as a VP on a power trading desk in London, I'm currently a relatively junior power trader at an EU utility. Anyone familiar with European power markets will know theres a pretty large shortage of power traders atm so we're in demand. Question is - does anyone have experience trading power in both a bank and utility? and whats the upside to the bank? apart from the obvious prestige that come with trading with a BB I don't see much benefit in power trading where I have significantly more expertise surrounding me in

31 Jul 2021

Preferably would like opinions about Power Markets, but open to other markets as well. How is the path like? I've seen people jump into trading right out of school (mostly Ivy League, rarely any other school). On the other hand, I've seen people not get a trading seat in 5 years while being an analyst! I have also seen people get a trading seat coming from a Consulting position without ever being an analyst.

22 Apr 2021

I was recently offered a summer internship at an oil major at a certain location, my home town, in their natural gas trading program and accepted it. I am extremely excited about the opportunity! But, I have always been interested in crude oil. Maybe I am a little biased; as I took a certificate program in Global Oil & Gas Management that was strongly focused in crude? Since then, I have been doing quite a bit of reading into the news and the process of crude trading. But, upon receiving my internship offer, I found out that their crude trading is actually at a different location than their

17 Nov 2016

Hello monkeys, I was wondering whether some of you know something about energy trading. Normally, when purchasing for your own portfolio one adds different types of premiums (for example imbalance and profile risks) to get to an ITP for your company, but what risk components are added if you sell the electricity on markets like the APX/EPEX? For example, if I have a PPA and directly sell the power on spot, how is that price built up? Thanks for your help!

22 Apr 2021

Looking to get some of the opinions of the other physical trade guys in the forum, but anyone feel free to chime in. Given the moves XOM has made, what are your opinions on having another monster trading shop coming into the market? I agree with the sentiment that they arent going to start paper trading, but the change of the company being anything different than a price taker is going to be substantial. I know they are essentially anchoring a new trading hub out in Big Perm. Also there have always been certain market signs, like when the banks are in energy trading times are good. What does

13 Jun 2018

Good afternoon, monkeys. Listen: A crude and natural gas midstream firm like MarkWest Energy Partners and an oil refinery in the middle of Alabama will have different price exposures, and thus require different hedges to protect themselves in the event of future uncertainty. While not everyone is interested in the energy markets, I figured I'd do a few pieces of some of the rudimentary energy lingo so you can impress your friends down in Houston. What is the crack spread?

11 Jan 2013

Hi all, I´ve started recently as a power trader and was wondering if you could recommend some resources (or write any comments) on various trading strategies possible in the electricity market. I tried searching on the forum here and there are few people with experience in energy trading, so hopefully I´ll get some answers (I found several discussions on power, but nothing detailed, except some info on DA vs RT and FTRs). Coming from the "traditional" financial markets background, where there are multiple bible-sized books available on every detail, I was quite surprised to not find much on

27 Dec 2017

Does anyone have any info about the following energy prop trading shops: Glencore Mercuria Arcadia Masefield Vitol Trafigura Gunvor How would you rank them in terms of prestige? How do they compare with trading at a BB? Any info would be appreciated

21 Nov 2017

Ok ladies and gents, the Energy Rodeo is fast coming up and, if the motivation to learn from industry professionals and insiders isn't enough to make you want to come down to Houston, maybe this will be. In addition to all the great things the Rodeo provides, some of your favorite WSO posters and contributors will be there as well. Big names like: Gekko20 Monty09 Anthony Shorttheworld CaptK and Happypantsmcgee Come on down to Houston January 29th and get the chance to learn, network, and have a good time as well as meet some of your fellow WSO regulars. www.energyrodeo.com

20 Nov 2010

It seems to me that a lot of people these days think that trading oil and energy is better than trading equities or fixed income and I'm not sure why. I am not familiar with oil trading companies and their business model. Can someone shed me some light on the matter? I know that a lot of prop trading firms make markets in derivatives. Some do high frequency trading in equities, some do statistical arbitrage and some take directional bets short-term and long. What exactly do oil trading firms and other energy trading firms do and how do they make money? Do they just buy physical oil, store them and sell them at a higher price and make money off the spreads? Do they take directional bets on the price of oil? Do they make markets in the commodities futures market? Thanks a lot

09 Jul 2011

I have 3 years of work experience developing real-time risk systems for commodities trading in Houston at a BB. BS in Computer Science and BA in Economics from UT Austin. Want to eventually become an energy trader in Houston. 3.95 GPA, 750 GMAT. I think an MSF program would give me time to do some independent study and network network network. Which program do you think would place the best in Houston for most likely a role as an energy trading analyst: UT Austin MSF, Tulane Master of Management in Energy, MIT MSF, or other (MBA or different school)? All these programs are relatively new, and UT's program is brand new. Top choices for employment after graduation would include Shell, BP, Vitol, Koch S&T, Chevron, ConocoPhillips, before BB.

22 Feb 2012

I was out last night having drinks with a few energy traders at a HF I am applying to for an entry level position. Clearly these guys make a lot of money especially the owner. After some drinks one of the traders said, "Listen this is an opportunity of a lifetime, I made a $1.5mm bonus last year and this year it will be closer to $2mm." On top of that his base is 150k The fund is not in a big city, or wealthy area, and adjusted for cost of living that's more like $4-5mm bonus in NYC and 350k base. With the opportunity in 2 years to become a trader I obviously was shocked at that number. Is

30 Dec 2012

Hi, Interested in learning from others on what its like to establish / specialize in each of the 3 big energy commodities. How easy is it to transition from one to the other? I would assume Gas to/from Power have a fairly easily transition ? Also, what is future career route and exit opp (just in case if one find it isn't suitable) for Gas trader Vs Oil Traders Vs power traders. Which one has the most international demand and the most lucrative in terms of industry compensation, turnover and the level of competitiveness. Thanks

04 Jan 2013

Are there better graduate degrees out there? I'm worried even if I applied to a program like this I wouldn't get a trading job, because I don't have any internship experience with big firms. A little bit about myself:

08 Jan 2014

Hi everyone. Like many others, I have been peeking around the forum for quite a lot of time without really posting. Now I finally need some bespoke advice from you. I am sure most of the people around here already think I am crazy just after reading the title of the post. The real reason I am posting is because I have two options ahead of me and I am struggling to choose. Hence… it would be quite useful to gather some opinions from this helpful community.

01 Nov 2014

Hello team, I've got a graduate gig at several BB ib's and a large utility. I am very interested in the utility as I firmly believe energy trading is the future. The problems I have is being offered ~80k at the BB's and ~45k at utility. Also the two year graduate program for the utility, meaning I would not be considered for bonus or be an actual trader until 2015 (if I start 2013). And the utility is based in the middle of nowhere and not a trading hub, ie NY, Houston etc... (The ultility trades oil, gas, coal, freight, pretty much everything) My question is where would you go, and how tangible it is to move to a trading house (glencore, vitol etc..) from a utility? Kind regards, and a merry xmas to all Curtis

26 Dec 2012

Hi everybody, I'm currently working in a small oil trading desk of a gas company where we only do derivatives (not physical). I'm here since mid of last year and it's my first job but I would like to consider new opportunities (I hope to find something new before the end of the year) in IB, utilities or trading companies (Vitol, Glencore...) in UK, Switzerland or Netherlands. I'm based in Europe, and because it's getting difficult to get a front office job in a derivatives energy trading when banks are closing their desk and job offers from utilities are quiet rare (however I only started my

13 Jun 2015

First of all, I was wondering why natural gas price affects electricity price so much in U.S. market. I interned at a trading floor this summer and I saw power traders sit very close to natural gas traders and interact a lot.. There are a lot of other sources of energy like coal, oil, nuclear etc, but why don't power traders don't follow those commodities as much as natural gas ? (like why power traders don't sit next to coal or oil traders, but natural gas traders) Also, I was wondering whether anyone can shed a light on the supply stack of power. Thank you!!

05 Oct 2010

Hi everyone, I'm in a big period of hesitation about my future and I need your advice. I would like to work in oil and gas trading. I have a French Master's degree in market finance (non target school) and quite good experience (Fixed-income brokerage + Gas structuring). In order to succeed in this type of job, I'm thinking of doing a second master in a target school. My question is: is it better to do a master's degree in energy to complete my master's degree in finance? I'm thinking of Cass (Energy Trade Finance) or Escp (Energy management). Or in the other case, I could do another master in

30 Jan 2020

Am I screwing myself for the future by taking a natural gas scheduling gig? Will I have limited exit opps if I ever decide to change?

28 Sep 2018

So last week one of my peers in the energy industry told me he leaving his firm to go work for a REIT and it got me thinking, is this another sign of rebound in the RE industry? To give u some background, I trade NG and so did my friend. Now, granted there are good and bad years in the energy industry, on average id say its a pretty decent paying industry, so it just made me think "why".

21 Apr 2012

Energy Rodeo 2012 has been confirmed for January 7th, 2012. Further details to follow…

17 Feb 2011

Let me preface this by saying that I had every intention of writing something meaningful about the fact that Google has applied to become a power marketer and how that will probably present a great opportunity to savvy energy traders. It's another sign of the coming global takeover by Google, and I'm frankly all for it. However. I stumbled across a website this morning that is too awesome not to share. I've been sitting here for the past hour on the verge of pissing myself from laughing. The website is Texts From Last Night and the premise of the site is to aggregate and archive all the

11 Jan 2010

Is there anyone out there who trades emissions, solar RECs, or LCFS credits? There is a very small community out there and wanted to share some ideas. Renewables are exploding but the ability to hedge the revenue streams have not.

01 Mar 2021

There is an electric company at my school doing OCR for some positions. I'm vaguely interested in trading, but I would like to specifically know more about power trading. I know for oil trading positions at the super majors you have to work as a scheduler before you can trade and I was wondering if there is a similar process at power companies.

02 Apr 2014

I've read through all the topics related to energy trading roles, and I know that you have to start in ops/scheduling before moving on to become a real trader. However, my background (chemical engineering major) isn't really suitable for obtaining a scheduling role at one of the majors. I know Conocophillips had a 2-yr analyst program that encouraged engineering majors, but I'm not sure what will happen this year after the COP/PSX split.

04 Aug 2012

I need some help folks. I'm using my Career Center to critique my resume and cover letter Though, I feel that their input may be very generic and not tailored for critiquing cover letters and resumes aimed at earning positions in IB or S&T. My undergrad is in industrial technology and engineering... been working in product development engineering for 4 years. I'm applying to every BB, MM, boutique, etc. that I can in hopes of landing a summer associate internship. I know there are quite a few of you Monkeys/Baboons/etc. that work in the industry and I would greatly appreciate any input you may have to offer. Let me know if you would be willing to take a look at my cover letter and resume. Again, thanks for your help!

23 Jan 2011

I am a 26 year old energy trader who has an UG in finance and an MFE from a top program. I've been trading for 2 years in physical energy at a top merchant trading firm such as glencore, trafigura, tenaska trading physical commodities (natural gas, oil etc. I don't want to mention specifics because the industry is small and I want to stay anonymous) I am considering going to get an MBA so I can more easily find financing to start my own merchant trading company. I was wondering if there are other traders (physical or financial) who have gone and gotten and MBA and what they think about its

19 Jan 2016

I am currently working in PWM at a major wire house. I have been out of school for about 2 years from a non-target. I have the opportunity to join a top group at my current firm. This group is in the top 100 in Barons and would be a great opportunity. I also have an opportunity to join an energy hedge fund at an entry level position to move into trading. I am trying to decide which would be best, I would prefer trading but want to consider everything before making this decision. I am a long time reader and would appreciate a little help!

20 Dec 2012

I am about to interview with an energy trading firm based in Switzerland for a natural gas trading role covering Europe. I have quantish background and experience at a bulge bracket investment bank in structuring. The interview is next week and I would appreciate any hints regarding the peculiarities of natural gas trading, as I am not very familiar with it. It is a junior role so that shouldn't be an obstacle, but I would like to show interest in the field. If you had couple of days, what would you read to revise for the interview? Based on the job spec, I expect it to have focus on market analysis and scheduling. It's more focused on operations, as that seems how they recruit for the entry level.. Also coding experience is required.

07 Aug 2014

I'll make this quick: Graduated with Finance undergrad December 2008 1st year MBA with focus in Energy Risk Management ~2 years experience as Credit Analyst for commercial bank I want to transition into a role that leads to energy trading (risk, scheduling, etc. as my long term goal would be to trade). For those with energy trading experience, how does the industry perceive energy brokers -- specifically Liquefied Petrochemical Gas Brokers? I wouldn't want to jump into this position if it carries a negative connotation (as seen with wealth management brokers) that would limit me to getting to where I want to be. Thoughts?

26 May 2010

I currently have two different offers for a summer internship, one offer from PwC to intern in their Houston office as a management consulting intern, and the other from Exxon to work as an analyst on their up and coming trading floor. I have experience working on another energy trading floor, and know that I really enjoy the industry. It sounds like there's a variety of projects at PwC, but given my background there's a good chance I'd be working in their commodities trading/advisory practice or else on some oil and gas project. I'm posting this in both the sales and trading as well as the

19 Oct 2018

It seems like a lot of the guys on this board are really knowledgable about energy trading so I would really appreciate your help.

27 Oct 2009

Hi all, I'm heading off in September to get my MBA from Chicago Booth and am looking to break into energy trading upon graduation. I grew up and live in Houston, Texas which seems to present numerous opportunities to come back after graduation with large banks having presences here (commodity HQs), multi-national energy firms located here (BP, Shell, etc) and a few energy hedge funds.

07 Apr 2009

Hi, I just graduated, most of the positions I keep getting interviews for seem to be either back-office or contract. I would still like to aim for investment banking and equity research jobs. Most of my internships were in the front office in Trading or Financial Analysis roles. I think my resume needs improvement and could be one of the things to help start landing more interviews in the sell-side of the business. http://www.razume.com/documents/11238

13 Aug 2009

I've read a few very good posts on WSO about commodities trading, so I'm led to believe the knowledge is out there... My question to the WSO community is: does anyone have a good understanding of how JPMVEC actually perpetuated the fraud (how did the scheme work in practice), and who might some of the victims be, specifically (e.g. interested in specific company/trader names, if possible)? Any insight would be appreciated! Cheers, BR

17 Sep 2013

I see that this topic has been touched on before but...I currently have a commodities trading related offer from one of the large energy/oil companies and with one of the large banks which has faired well thus far. I'd prefer to go with the bank which offers better compensation and a greater range in opportunities but with things so shaky right now, are the benefits of Wall Street worth the risk? Maybe this isn't the best time to be betting my future on an industry in distress right now if I don't have to. I'm not looking for a miracle answer here, but if anyone has an opinion I'd be

14 Sep 2008

This group is a place where energy traders and students trying to break into energy trading can come to discuss recruiting and the industry.

25 Nov 2013

Anybody hear much about this firm recently? I've checked wso, elitetrader, quantnet, etc. but most everything is from a few years back when it seemed like business in energy trading was more profitable/less regulated. Is it still a firm worth working at straight out of college? I've heard bad things about their 2 year restrictive non compete. How would it compare with working at a larger prop firm like SIG? Thanks in advance!

02 Nov 2015

Hi, Entering final semester this September majoring in finance and econ at semi target. experience include summer internship at a major BB energy trading desk. would love some information on any energy trading companies or utilities that are willing to recruit/train new traders. Other valuable inputs are always welcome. Thanks

27 Aug 2012

Sorry for the long post in advance. Please offer any advice you have. I have been doing software development focusing on commodities front office risk in Houston for 3 years. I have degrees in Comp Sci and Econ. I have a strong desire to become an energy trader, and I am looking for advice on the highest probability path to achieve this result. I would ideally like to stay in Houston, as my family is here, and the job market and low cost of living is a good combination.

14 Feb 2012

Hi, first post here, ima keep it very brief. I would be grateful for your answers. Im about to graduate with a business degree and am currently evaluating my options. Did internships in M&A but found it quite boring. Hence I want to try trading (ADHD high level btw. lol just thought might explain why watching the paint dry sucks). Anyways I don't know how many people are actually commodity traders here. Moreover how many in Europe? I found this program of E.ON which is similar to the ones of Shell, BP, RWE etc. what do you think? would I be able to make the switch to a Bank maybe at some point? all in all good entry position? I think learning the fundamentals at a utility might be a good idea. http://www.eon-energy-trading.com/cms/en/tqp_vaca…

04 Aug 2009

What's the word on the street about these guys? I hear they are one of the bigger players in natural gas and recruit heavily from UH. Any info would be greatly appreciated.

03 Nov 2013

Let's say you have just been hired into an energy trading group (North American power and gas only) at a BB bank. You have your choice of desks. In what order would you rank these groups? NYMEX gas East Gas East Power ERCOT West gas West power Also, you could trade either flat price or options.

21 Jan 2010

They called me the Commodity Merchant, I prefer "relationship manager". It not just buy low, sell high. It's managing the relationships, structuring the logistics assets and trades from the origin to the destination. We are a regular shipper on the Colonial Pipeline Line 2, Off-Exchange EFP cash settlement & buying from USGC, ship it with CPL and resell it to Greensboro, I also do rail scheduling balance +50 contracts a month. We are not aggressive like some other co, we are not too conservative [like say... Chevron]. The plain truth. Interesting world, but has been tough since 2 years compare

22 Dec 2016

Currently in Calgary, looking to get into energy trading, preferably nat gas or crude. So far, this is my list of desks, 1. BP 2. Transalta 3. Transcanada 4. Trafigura 5. Vitol 6. J Aron 7. JPM 8. TD Energy 9. CIBC Commodities 10. RBC 11. Suncor 12. Shell 13. EDF Trading 14. Encana 15. ConocoPhilips 16. Mercuria Energy anyone know additional ones?

16 Sep 2012

Has anyone ever heard of DC Energy. Just got a role as an associate and was wondering if anyone had any insight. What are some good books/sites to check out for energy trading.

27 Jan 2012

I am leaving for South-East Asia this fall for a one-year internship leaving behind a "charming" life in an inconspicuous small town in Sweden. My majors are finance and political economics from two well-known universities in the country and I have aspirations of working in the finance industry, preferably in Asia. I could go into further detail regarding my background but the main purpose of this post would be in line with the title. So - does anyone possibly have any insight in the matter or even better, has anyone endeavored in a career move such as this? I.e. Working/has been working as a

28 Jul 2014