Energy Trading & Investing: Trading, Risk Management, and Structuring Deals in the Energy Markets

by Davis W. Edwards

Power-up your investment portfolio

Volatile energy prices and a rapidly changing energy industry provide investment opportunities for savvy investors and dangers for uninformed ones. Natural gas fracking has the raised the concern that the world may be awash in cheap oil and natural gas. A decade of record high temperatures has replaced concerns about shrinking fossil fuel supplies. Alternative energy technologies like batteries, solar, and wind are shaking up utilities. Constant innovation and changing markets remains the hallmark of the energy sector.

Written by a leading expert in the energy sector, Energy Trading and Investing, Second Edition covers this exciting market discussing topics that range from traditional and emerging markets to need-to-know financial principles and proven investing strategies. A longstanding veteran of Wall Street trading and the energy sector, Davis Edwards provides detailed information on every topic important to energy investors, including:

- Natural gas, electricity, petroleum, coal, weather, and emissions markets
- Details on financial products, like futures, forwards, swaps, and options
- Deal structuring examples explaining spread options, spatial load forecasting, and tolling agreements
- Coverage of specialty electricity markets - capacity, financial transmission rights (FTRs), power purchase agreements (PPAs), and ancillary services
- Explanations of natural gas transportation, storage, and swing option contracts
- A practical introduction to market risk, credit risk, and model risk management.

This hands-on guidebook covers topics for professional traders, individual investors, MBA students, and energy market participants. Jargon from both the financial industry and energy market is fully explained and the math is made accessible to the average reader. Regardless of your background, Energy Trading and Investing will provide you with a comprehensive understanding of energy trading.

If you're a serious trader, you need to understand the energy markets, and Energy Trading and Investing is the only book you need to trade successfully in this vibrant sector.

Genres: Finance, Business, Nonfiction

512 pages, Hardcover

First published October 3, 2009

Reviews

[karl · Rating 4 out of 5]

Easy to read; digestible

[Daniel Siliski · Rating 5 out of 5]

I really enjoyed reading this and I learned a fair deal. If you're interested in how electricity gets delivered to your home, with a little bit of the science/engineering, a little bit of the business side of things (market structure), in language that you can understand, but also will make you think a bit and extend your knowledge, this is a great book.

[Casper Borly · Rating 3 out of 5]

It's ok. To get an indept understanding of any of the subjects it is not very good however it gives a fair overview of the energy trading. It is very biased towards the american market and I missed suggestions to further knowledge.

[Chris Maguire · Rating 3 out of 5]

Well written: a high enough level that I didn't get completely lost, but also enough detail to stretch my understanding of the more technical aspects, such as Black Scholes, calculus, etc.

[A · Rating 3 out of 5]

One of the better books on commodities - as it goes into a bit about each energy generation method.
Feels very much like information that an energy analyst would know.

[Scott Pederson · Rating 4 out of 5]

Good, comprehensive overview of the energy markets. Not too deep in any one area. Good read for anyone new to the market or has an indirect role such as finance or accounting.

[Wen Jun Ong · Rating 4 out of 5]

A bit outdated but overall is a good read. You will be able to learn the fundamentals of NatGas, Crude Oil and Energy in this book