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

Lesson 5 Introduction

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Overview

Energy is being consumed at every hour of the day everywhere on earth. Thus, energy commodities are being bought and sold constantly to fill this demand. When we are talking about prices for the actual physical production and consumption of natural gas and crude oil, we are talking about the "cash" market. In this lesson, we will explore the ways in which cash prices are established in the physical marketplace, historical pricing, the main publications that report these prices, and the methodologies they use to collect the data.

Learning Outcomes

At the successful completion of this lesson, students should be able to:

  • Gain a sense of historical natural gas “cash” market pricing
  • Understand the methodology for cash price determination
  • Become familiar with key industry pricing publications and their uses
    • Platt's Inside FERC
    • Platt's Gas Daily
    • OPIS & ARGUS Price Reports for NGLs and Crude Oil.
  • Review historical price trends
  • Discover online price data resources

What is due for this lesson?

This lesson will take us one week to complete. There are a number of required activities in this module. The chart below provides an overview of the activities for this lesson. For assignment details, refer to the location noted.

All assignments will be due Sunday, 11:59 p.m. Eastern Time.

Lesson Requirements
REQUIREMENT LOCATION SUBMITTING YOUR WORK
Lesson Quiz Modules > Lesson 5: Energy Commodity Logistics - Crude Oil Submitted through Canvas
Mini-lecture: Pricing - Physical Natural Gas & Crude Oil Mini-lecture: Pricing - Physical Natural Gas & Crude Oil page No submission
Lesson Activity Lesson Activity page Submitted through Canvas
Fundamental Factors (on-going) Lesson Activity page Submitted through Canvas

Questions?

If you have any questions, please post them to our General Course Questions discussion forum (not e-mail), located under Modules in Canvas. The TA and I will check that discussion forum daily to respond. While you are there, feel free to post your own responses if you, too, are able to help out a classmate.