Tuesday, November 18, 2014

An instructive approach to energy trading tenets

In the challenging world of energy trading, fortune favours the prepared. Whether one is brave enough (or not) comes second and not having a clear strategy would be borderline foolishness.

Given such a backdrop, almost inevitably, there are resources aplenty targeting those who feel the need to be better informed and equipped. Among the latest reference sources, industry veteran and academic Dr Iris Marie Mack’s book Energy Trading and Risk Management published by Wiley is a pretty compelling one.

The Oilholic instantly warmed up to the book barely a chapter in, struck by its practical approach, balanced tone, contextualised narrative and a genuine desire on the author’s part to define terms and methodologies for the benefit of those with a mid-tier investment knowledge base.

Furthermore, the instructive narrative seeks to bring about a holistic understanding of how energy markets work to begin with, leading on to an adequate treatment of risk, speculation and portfolio diversity tenets. The format in which Energy Trading and Risk Management is minutely sub-sectioned point to point is simply splendid. So should you wish to salami slice and pick up bits of the subject, it would serve you just as well as a cover to cover read through.

Conversely, if you are confident enough to skip the basics and go straight through to concepts and formulas, the sequential flow of text in each chapter helps you breeze through basic definitions usually quoted in boxed text on to what you are after.

Accompanying the text are charts, case studies, background briefs, notes on macro drivers and definitions at various points split into ten weighty sub-sectioned chapters in a book of around 270 pages. From contango to the modern portfolio theory, from risk management in the renewables business to mitigation in an ever changing market climate – it’s all there and duly referenced.

While the Oilholic appreciated Dr Mack's work in its entirety, a chapter on exotic energy derivatives (which follows a passage on the plain vanilla variety) stood out for this blogger. One would be happy to recommend this title to energy professionals, fellow energy analysts and those with a desire to pursue energy trading as a career pathway.

It would most definitely appeal to entrants finding their feet in the market as well as established participants wanting to refresh their thinking and methodologies. Ultimately, for every reader this title is bound to morph from being an informative and educational book at the point of first reading, to an invaluable reference source as and when subsequently needed. That makes it worthy of any energy sector professional’s bookshelf.

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To email: gaurav.sharma@oilholicssynonymous.com

© Gaurav Sharma, October, 2014. Photo: Front Cover – Energy Trading and Risk Management © Wiley Publishers, May, 2014.

1 comment:

Anonymous said...

Thank you for writing such an awesome review of my book.

I took the liberty of sharing with my students and posting on my blogs:

1. http://www.globalenergypost.com
2. http://www.wilmott.com/blogs/irismack/index.cfm/2014/11/30/orbes-Columnist-Gaurav-Sharma-An-Instructive-Approach-to-Energy-Trading-Tenets

Happy Holidays,
Iris Mack

Contact:

For comments or for professional queries, please email: gaurav.sharma@oilholicssynonymous.com

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