RETHINKING ENERGY RISK MANAGEMENT IN CHANGING MARKETS

Transcription

1 ENERGY RISK PRESENTS THE 18TH ANNUAL: Hilton Houston Post Oak, May 20-22, 2014 RETHINKING ENERGY RISK MANAGEMENT IN CHANGING MARKETS Main conference program highlights: Outlook for the global energy derivatives trading Review of FERC s analytics and surveillance tools Ongoing market liquidity issues and how to manage them Value creation through enterprise risk management (ERM) program Outlook for global oil prices and North Dakota s oil surge The changing landscape of state of the art energy risk management SEPARATELY BOOKABLE PRE-CONFERENCE WORKSHOP ON MAY 20 REGISTRATION ENQUIRIES Victoria Alderson T: +44 (0) E: victoria.alderson@incisivemedia.com SPEAKING OPPORTUNITIES Ruta Gnedeviciute T: +44 (0) E: ruta.gnedeviciute@incisivemedia.com SPONSOR OPPORTUNITIES Peter Petkov T: +44 (0) E: peter.petkov@incisivemedia.com 2014 SPEAKER LINE-UP INCLUDES: Francisco Blanch, Head of Global Commodity Research, BANK OF AMERICA MERRILL LYNCH GLOBAL RESEARCH Sean Collins, Deputy Director, Division of Analytics and Surveillance, Office of Enforcement, FERC Jonathan Stein, Chief Risk Officer, HESS CORPORATION James Caulfield, Global Head of Market Risk, IST, BP Brett Humphreys, Executive Director, Commodities Risk Management, MORGAN STANLEY Glen Mackey, Chief Risk Officer, NRG ENERGY Ben Bergum, Director, Fuel Hedging, DELTA AIR LINES John Doran, Director, Trade Monitoring and Surveillance, CONOCOPHILLIPS Follow us: #ERUSA Powered by:

2 WHO SHOULD ATTEND? WHY ATTEND? The following job titles: Chief Executive Officers Chief Compliance Officers Chief Financial Officers Chief Risk Officers Heads of Risk Management Heads of Compliance Heads of Derivatives Heads of Commodities Heads of Structured Products Heads of Business Development By company: Energy Companies Utilities Hedge Funds Investment Banks Technology Vendors Regulatory Agencies Risk Managers Market Analysts Portfolio Managers Quantitative Analysts Pricing Analysts Financial Engineers Traders Trade Control Managers Managers of Origination Consultancies Legal Firms Trading Houses Exchanges Refineries Network with senior risk professionals, traders, quantitative analysts, commodity researchers and regulators Receive a thorough update on regulatory initiatives and latest developments in global energy markets Engage in two interchangeable streams to tailor your learning experience Sharpen your skills in the tutor-led workshop Be a part of the global Energy Risk community and one of the most established events of its kind! WHAT DELEGATES SAID ABOUT THE 2013 CONFERENCE: Excellent place to see industry colleagues, make new friends and share new innovative ideas Director of Risk and Portfolio Analysis, TEXAS POWER Interesting presenters and well put together venue Chief Currency Strategist, CASTLE CURRENCY MANAGEMENT Very informative Director, Market and Portfolio risk, DUKE ENERGY I thought the conference was great and more importantly in tune to what is going on in the current industry Manager, Risk Analysis and Mitigation, WASHINGTON GAS LIGHT COMPANY I was impressed with the relevance of the topics and the quality of the speakers. I thought it was amazing how everything kept moving to fit so much content into such a limited time Supply Manager, CRYSTAL FLASH

3 DAY ONE MAY 21, Registration and refreshments 8.50 ENERGY RISK welcome address KEYNOTE ADDRESS: Outlook for the global derivatives trading: How does CFTC s cross-border jurisdiction impact energy traders worldwide? 9.40 Assessing viability of the commodity business: Can banks remain competitive in the commodity trading space? Maintaining competitive edge in the market of:» Low margins» High capital requirements» Increasing regulatory scrutiny If an exit is the only strategy, how can we expect commodity trading business to transform in coming years? Morning break Joining the club: Exploring struggles and joys of being a swap dealer PANEL DISCUSSION: The future of the energy derivatives trading under new position limits Assessing the impact of speculative position limits on commodity derivatives Liquidity risk management, trading and hedging With new position limits in place, how are markets participants expected to perform these essential tasks? Treatment of the hedge exemptions: How is it different from the earlier proposal? Defining bone fide hedge: What constitutes bone fide hedge according to CFTC? What modifications should be taken to make it agreeable for market participants? Which trades count as trade options and should be included in position limits? On balance, if proposed position limits come into effect, what long term changes are expected? Lunch and opportunity to visit the exhibition STREAM ONE 1.20 Outlook for renewables: How are renewables competing with traditional utilities? Utilities have been steadily losing their share in European energy markets: What are the trends in the US? The power shift: From consumers to producers Impact on energy prices How can utilities adapt their business model to effectively compete/collaborate with renewables? STREAM TWO Swaps to futures: How are energy trading and hedging strategies impacted by futurization? Taking a long, hard look at the futurization: How do swap futures align with Dodd- Frank guidelines? Execution, margin and delivery mechanism of swap futures Effect on liquidity and market structure of swaps and swap futures How can these innovative products be utilized to enhance trading and hedging positions?

4 DAY ONE MAY 21, STREAM ONE STREAM TWO The impact of Renewable Identification Numbers (RINs) on the refinery hedging RINsanity: Volatility of prices for ethanol Renewable Identification Numbers (RINs) The effect on US refined products Hedging RINs risk 2.40 CORPORATE ADDRESS: Corporate hedger s perspective on energy hedging programs and risk management processes Navigating new and old risks in the evolving energy marketplace Determining the source of risks Refinery and airlines: Managing unique sets of risks in different portfolios Revisiting hedging objectives, strategies and constraints How successful is your hedging program? 3.20 Afternoon break High frequency trading in energy markets What does a typical HFT operation look like? Impact of HFT on volatility in the futures market How does HFT interface with traditional energy trading? Trade surveillance approach that mitigates regulatory risk Critical program components What signals attract regulatory attention? How to take advantage of comparative market analysis Proven methods for seeing the big picture 3.50 PANEL DISCUSSION: Forward - looking liquidity risk management in energy portfolios How to manage prolonged market liquidity issues? Challenging traditional methods of measuring and monitoring liquidity risk Obtaining meaningful metrics for efficient liquidity risk management Communication is the key: How to encourage strong collaboration between traders and risk managers to manage liquidity risk? 4.30 CASE STUDY: Creating value through enterprise risk management (ERM) program Implementing ERM as a part of the operational process across the company to align the organization around major risks Applying ERM to understand value drivers for each asset and business line Utilizing ERM in the capital allocation decision process: How do you quantify major risks to assess the risk of projects? Integrated risk management process and value of facilitating across multiple internal stakeholders 5.10 Closing chairperson s remarks followed by drinks reception REGISTRATION ENQUIRIES Victoria Alderson T: +44 (0) E: victoria.alderson@incisivemedia.com SPEAKING OPPORTUNITIES Ruta Gnedeviciute T: +44 (0) E: ruta.gnedeviciute@incisivemedia.com SPONSOR OPPORTUNITIES Peter Petkov T: +44 (0) E: peter.petkov@incisivemedia.com Follow us: #ERUSA

5 DAY TWO MAY 22, Registration and refreshments KEYNOTE ADDRESS: Reviewing the Commission s analysis and surveillance tools to monitor trades and prevent/detect unlawful behaviour in power and natural gas markets Enhancing power and natural gas market surveillance in response to recent manipulation cases FERC s data analytics capabilities Assessing the Office of Enforcement abilities to prevent anticompetitive behaviour in energy markets 9.40 PANEL DISCUSSION: Exploring crude oil price benchmarks, spreads and correlations Shrinking oil price spreads and how they affect crude oil trade activity: Are WTI/Brent spread dynamics likely to change? Exploring viable oil price benchmarks Which pairs can we expect to create dynamic correlations? Oil and natural gas? Oil and liquids? How are current price oil benchmarks shaping the trading space? What is the impact of the structural change in the US oil production on oil prices? CHIEF RISK OFFICER S ADDRESS: Reviewing essential and unessential technology in energy risk management Morning break STREAM ONE North Dakota oil boom: How does the shift in production locations impact energy market participants? What effect does North Dakota s oil surge have on the oil market? How does the record high oil exploration in North Dakota impact infrastructure developments in North America? How are refineries coping with shale oil outpour? Assessing the impact on oil prices: Implications on WTI and Brent The role of fundamental information in energy trading Monitoring energy market fundamentals Effectively employing real time information to daily trading strategies Data capabilities and limitations 1.10 Lunch and opportunity to visit the exhibition STREAM TWO Calculating and hedging CVA Basic methods for calculating CVA Complexities related to implementation» Non-traded counterparties» Correlation between commodity prices and CDS curves Methods for hedging CVA Valuation and optimal hedging of storage contracts in incomplete gas markets Valuation framework Risk premium for individual investors Spot price modeling

6 DAY TWO MAY 22, STREAM ONE STREAM TWO PANEL DISCUSSION: Spotlight on gas and coal competition in power production Optimizing power generation: How much output is/should be generated from gas and how much from coal? Growing presence of natural gas in power production Outlook for coal: Can coal compete with low natural gas prices? 2.30 FOCUS ON MEXICO: Challenges and opportunities presented by the energy reform in Mexico How attractive Mexico is for foreign investors? What measures is Mexican government taking to meet foreign investors expectations? What government initiatives towards open Mexican energy market remain unclear? How will PEMEX business model change to accommodate the new reform? 3.10 Afternoon break 3.40 AFTERNOON KEYNOTE ADDRESS: Global energy outlook Oil prices and the macro economy Regional supply and demand trends for crude oil and petroleum products Key drivers of global natural gas prices Demand response issues Assessing the DR program: How effective is it? Distributed generation, demand response and storage Optimizing demand response and distributed energy resources Valuating liquidity risk in the new market structure Quantitative approach to liquidity risk management Liquidity risk and liquidity adjusted VaR Internal model validation process and supervision 4.20 PANEL DISCUSSION: Changing perception on state of the art energy portfolio risk management: Can immensely sophisticated tools and quantitative approaches retain their charm? Growing levels of regulation and how it changes the way you manage your portfolio Which risks are reduced as a result of new regulatory guidelines and which ones remain (increase)? Reviewing internal hedging programs under increased regulatory scrutiny Is there a place for exotic products in your energy portfolio? If so, how to use them to maximize returns? With the industry taking steps to simplified trading and risk management, what steps should managers take to adapt? What role does technology play in changing energy trading and risk management scene? 5.00 Closing chairperson s remarks. End of the conference. REGISTRATION ENQUIRIES Victoria Alderson T: +44 (0) E: victoria.alderson@incisivemedia.com SPEAKING OPPORTUNITIES Ruta Gnedeviciute T: +44 (0) E: ruta.gnedeviciute@incisivemedia.com SPONSOR OPPORTUNITIES Peter Petkov T: +44 (0) E: peter.petkov@incisivemedia.com Follow us: #ERUSA