There are many companies looking to enter the business of trading physical crude oil, refined petroleum products petrochemicals or LNG e.g. oil and gas producers seeking to trade their own equity production; commodity trading companies seeking to expand into the energy sector, financial institutions seeking to grow a commodity trading business. CER and it associates are well-positioned to use their significant experience in establishing and growing a fully-fledged commodity trading company to advise aspiring companies of what it might take to become capable of trading globally by deploying all of the necessary inter-linking functions that form part of a physical trade working in unison. CER advises clients on the critical aspects pertaining to such an enterprise including set-up time; capital requirements and sources of capital, anticipated operating budgets, required risk management systems, etc.
Where there is no conflict of interest CER is able to offer strategically and economically attractive alternatives to these aspiring companies setting up their own independent supply and trading organisation including the possibility of establishing formal or informal “incubation” joint ventures to trade these commodities or to capitalise on specific trading opportunities.
In respect of the more conventional commercial advisory and training services CER is able to offer support in the following:
- Review and manage crude oil / commodity supply contracts for Governments and oil company marketing teams.
- Review and manage complex Strategic Inventory Management for Governments.
- Capturing Time-Value in Energy Commodities and Assets
- Manage the Mark-to-Market Control of Complex Structured Energy Trades
- Advise on general matters related to commodity supply and trading (shipping, trade finance, risk management, etc.)
- Pre-production finance
- Hedging of forward production to stabilise cash flow
- Optimising trading netbacks relative to contractual and other risks
- Developing structured multi-commodity product trades e.g. crude for refined products (diesel/gasoline)swaps
CER and its associates have developed a training course comprising 11 modules which can take place over a maximum period of 12 months. Individual elements of the course are presented by expert companies or individuals active within each specific field of the industry and the course can be adapted to address specific corporate and individual needs. The standard course includes the following modules:
• Module 1 – General Oil Market Orientation
- Module 2 – Claims
- Module 3 – Financing and Risk Management
- Module 4 – Financing and Risk Placement
- Module 5 – Oil Trading
- Module 6 – Risk Identification
- Module 7 – Price Risk Management
- Module 8 – Deals Desk
- Module 9 – Contango Storage Business Case Study
- Module 10 – Backwardation Business: Case study
- Module 11 – Combined Contango and Backwardation Business: Case Study.