Syllabus - Tom Seng Version

EBF 301 - Global Finance for the Earth, Energy, and Materials Industries

This syllabus is divided into several sections. You can read it sequentially by scrolling the length of the document or by clicking on any of the links below to “jump” to specific sections. It is essential that you read the entire document as well as material covered in the course Orientation. Together these serve as our course "contract."

• Instructor
• Course Overview
• Required Course Materials
• Assignments and Grading
• Course Schedule
• Course Policies
• Technical Requirements

Instructor

Tom Seng
College of Earth and Mineral Sciences, The Pennsylvania State University.

• E-mail: Please use the course e-mail system (see the Communicate tab in ANGEL).
• Office Hours: I live in Tulsa, Oklahoma which is in the United States Central time zone (CST). I am one hour behind the Eastern time zone (EST) for those of you on the East Coast. I will try to check for and reply to messages at least once a day. Please contact me to make an appointment if you’d like to speak to me at a given time. I am flexible and will make every effort to accommodate your schedule.

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Course Overview

Description: The aim of this course is to introduce fundamental concepts of physical and financial energy commodity trading.

The course will cover the physical and financial aspects of the following energy commodities – crude, natural gas, natural gas liquids, gasoline, and power. The physical “path” of each commodity from the point of production to the point of use will be explained, as well as, the “value chain” that exists for each. Commodity market pricing, both cash and financial, will be presented, encompassing industry “postings” for cash, commodity exchanges, and “over-the-counter” markets. The use of financial derivatives to reduce market price risk (“hedging”) will be presented, and “real world” examples will be utilized. Students will “trade” mock energy contract portfolios using a trading simulator (factsim.org)while learning about “mark-to-market” and risk controls.  Financial contracts for crude oil and natural gas will be used with students justifying their "buy/sell' trades using both fundamental and technical analysisy. Other energy sources such as coal, nuclear, and alternative energy will not be covered in any great detail.

The course will largely be comprised of online narrative, audio lectures, and required readings. Students will use standard pricing and hedging models to work “real world” problems from both producer and consumer perspectives. Online forums will be available for student discussion with Instructor feedback and contribution.  There will also be several case studies presented involving disastrous trading results where a lack of risk controls were present.

When you successfully complete this course, you will be prepared to:

1. Understand the nature of energy commodity logistics, i.e., the ways in which energy production is delivered to the ultimate consumer.
2. Establish costs and revenues associated with the movement of energy commodities from point of production to point of consumption, (the so-called economic “value chain”).
3. Describe market pricing both “cash” and financial, including how prices are established. Identify key industry pricing publications, financial exchanges, and “over-the-counter” markets.
4. Define energy financial derivatives, including futures, forwards, swaps, spreads and options. Illustrate how they are traded and their use for “hedging” market price risk and which industry segments utilize them.
5. List the “do’s and don’ts” of energy commodity trading, i.e., risk controls and trading limits.

EBF 301 will be conducted entirely on the World Wide Web. There will be no set class meeting times, but you will be required to complete weekly assignments. The content of this course is divided into 14 lessons. Each lesson will be completed in approximately 1 week (subject to change). All assignments will be due Sunday, 11:59 p.m. Eastern Time on the week assigned.

What I Expect of You

On average, most students spend seven to nine hours per week working on course assignments. Your workload may be more or less depending on your study habits.

I have worked hard to make this the most effective and convenient educational experience possible. The Internet may still be a novel learning environment for you, but in one sense it is no different from a traditional college class: how much and how well you learn is ultimately up to you. You will succeed if you are diligent about keeping up with the class schedule and if you take advantage of opportunities to communicate with me and with your fellow students.

Specific learning objectives for each lesson and project are detailed within each lesson. The class schedule is published below.

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Required Course Materials

1. Fundamentals of Trading Energy Futures & Options, 2nd Edition, Steven Errera and Stewart L. Brown. Pennwell, 2002. ISBN 0-8714-836-1. (Core text on trading.) You may purchase the text through your favorite local or online bookseller.
2. FACTSim.org Commodity Trading Simulation: University of Florida energy commodity simulation. Students will have to go to "www.factsim.org" to register. Cost is $50 (Note: Access is active for six months from the time of purchase.) Instructions for registration and use will be posted in ANGEL.
    

All additional materials needed for this course are presented online through this course website and in ANGEL. In order to access all materials, you need to have an active Penn State Access Account user ID and password (used to access the on-line course resources). If you have any questions about obtaining or activating your Penn State Access Account, please contact the Outreach Helpdesk (if you are a World Campus student) or the Penn State HelpDesk if you are a resident student.

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Assignments and Grading

EBF 301 will rely upon a variety of methods to assess and evaluate student learning, including:

• Quizzes allow you to practice your mastery of the terms and concepts in the lessons.
• Lesson Activities & Reflection/Discussion
• Trading & Reflection/Discussion
• Mid-term Exam and Final Exam evaluate your ability to synthesize and apply terms and concepts from throughout the course.

It is important that your work be submitted in the proper format to the appropriate place by the designated due date. Many of these activities require some interpretation and independent thinking on your part. As you are working on assignments, you are encouraged to share ideas and questions you may have in the "Questions?" Discussion Forum located in ANGEL. I will read daily and reply as needed.

Assignments are due by 11:59 p.m. Eastern Time on Sunday evenings.

You will earn a grade that reflects the extent to which you achieve the course learning objectives listed above. Grades are assigned by the percentage of possible points earned in each lesson's activities.

Make-Up Exams

Make-up exams will not be offered except in the case of University-excused absences.

Grades

I will use the ANGEL gradebook to keep track of your grades.  You can see your grades in the gradebook, too, by clicking the Reports tab in ANGEL, then choosing "Grades" from the "Category" dropdown menu, then clicking "Run." Overall course grades will be determined as follows. Percentages refer to the proportion of all possible points earned.

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Course Schedule

Below you will find a summary of the primary learning activities for this course and the associated time frames. All assignments will be due Sunday, 11:59 p.m. Eastern Time on the week assigned.

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Course Policies

• Penn State E-mail Accounts
  All official communications from the Penn State World Campus are sent to students' Penn State e-mail accounts. Be sure to check your Penn State account regularly, or forward your Penn State e-mail to your preferred e-mail account, so you don't miss any important information.
• Deferred Grades
  If you are prevented from completing this course within the prescribed amount of time, it is possible to have the grade deferred with the concurrence of the instructor. To seek a deferred grade, you must submit a written request (by e-mail or U.S. post) to your instructor describing the reason(s) for the request. It is up to your instructor to determine whether or not you will be permitted to receive a deferred grade. If, for any reason, the course work for the deferred grade is not complete by the assigned time, a grade of "F" will be automatically entered on your transcript.
• Late Policy
  I do not expect any "late work." In exceptional circumstances, you should contact me. The earlier you contact me to request a late submission, the better. Requests will be considered on a case by case basis. Generally, late assignments will receive a grade of -0-. All assignments will be due Sunday, 11:59 p.m. Eastern Time on the week assigned.Consider each Lesson to be one week of the semester unless otherwise notified to the contrary. Course lessons are available to you in advance. It is your responsibility to plan ahead and work ahead if necessary to accommodate your personal schedule. This flexibility is one of the great features of online learning. Take advantage of it!
• Academic Integrity
  This course follows the guidelines for academic integrity of Penn State's College of Earth and Mineral Sciences. Penn State defines academic integrity as "the pursuit of scholarly project in an open, honest and responsible manner." Academic integrity includes "a commitment not to engage in or tolerate acts of falsification, misrepresentation, or deception." In particular, the University defines plagiarism as "the fabrication of information and citations; submitting other's work from professional journals, books, articles, and papers; submission of other student's papers, lab results or project reports and representing the work as one's own." Penalties for violations of academic integrity may include course failure. To learn more, see Penn State's "Plagiarism Tutorial for Students." I cannot overemphasize the importance of academic integrity. DO NOT copy and paste from unreferenced sources. Without exception: if you use a direct quote from any source, as part of any submitted assignment, the quote must be clearly noted and properly referenced. (In-line references are fine.)
• Citation and Reference Style
   Academic Integrity and Citation Style Guide
• Accommodating Disabilities
  Penn State welcomes students with disabilities into the University's educational programs. Every Penn State campus has an office for students with disabilities. The Office for Disability Services (ODS) Web site provides contact information for every Penn State campus. For further information, please visit the Office for Disability Services Web site.
  
  In order to receive consideration for reasonable accommodations, you must contact the appropriate disability services office at the campus where you are officially enrolled, participate in an intake interview, and provide documentation. If the documentation supports your request for reasonable accommodations, your campus’s disability services office will provide you with an accommodation letter. Please share this letter with your instructors and discuss the accommodations with them as early in your courses as possible. You must follow this process for every semester that you request accommodations.
• Military Personnel
  Veterans and currently serving military personnel and/or spouses with unique circumstances (e.g., upcoming deployments, drill/duty requirements, disabilities, VA appointments, etc.) are welcome and encouraged to communicate these, in advance if possible, to the instructor in the case that special arrangements need to be made.
• Inclement Weather
  In case of weather-related delays at the University, this online course will proceed as planned. Your instructor will inform you if there are any extenuating circumstances regarding content or activity due dates in the course due to weather delays. If you are affected by a weather-related emergency, please contact your instructor at the earliest possible time to make special arrangements.
• Netiquette
  The term "Netiquette" refers to the etiquette guidelines for electronic communications, such as e-mail and bulletin board postings. Netiquette covers not only rules to maintain civility in discussions, but also special guidelines unique to the electronic nature of forum messages. Please review Virginia Shea's "The Core Rules of Netiquette" for general guidelines that should be followed when communicating in this course.
• Connect Online with Caution
  Penn State is committed to educational access for all. Our students come from all walks of life and have diverse life experiences. As with any other online community, the lack of physical interaction in an online classroom can create a false sense of anonymity and security. While one can make new friends online, digital relationships can also be misleading. Good judgment and decision making are critical when choosing to disclose personal information with others whom you do not know.

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Technical Requirements

For this course, we recommend the minimum technical requirements outlined on the Dutton Institute Technical Requirements page, including the requirements listed for same-time, synchronous communications. If you need technical assistance at any point during the course, please contact the Outreach Helpdesk (for World Campus students) or the Penn State HelpDesk (for students at all other campus locations).

Disclaimer: Please note that the specifics of this Course Syllabus can be changed at any time, and you will be responsible for abiding by any such changes. Changes will be posted to the course discussion forum.

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