Contents:

INTRODUCTION Energy risk management The risk management process Style of presentation in the book Chapter review and look ahead RISK IN ENERGY MARKETS Financial and commodity markets Understanding risk Designing a risk management programme Chapter review and look ahead MARKET VALUE OF PHYSICAL AND FINANCIAL COMMITMENTS Preamble Commitments, positions and market prices Contracts and mark-to-market quantities Mark-to-market is valid only for an instant Chapter review and look ahead PHYSICAL TRANSACTIONS AND BASIC HEDGING INSTRUMENTS Physical transactions: Preamble Physical producer Physical consumer Physical transformer Risk analysis Physical futures and forwards Fixed-for-floating swaps Other types of swap: Floating-for-floating swaps Quanto swaps Indexation swap Other swap types Chapter review and look ahead Technical appendix: Futures margining Technical appendix: Pricing of OTC linear instruments BASIC OPTION CONCEPTS Break-out boxes Technical appendices Black-Scholes option valuation Computing historical volatility and correlation Types of volatility Comparison of option values for European, American and Asian options DERIVATIVES PACKAGES Break-out boxes TAILORED DERIVATIVE TYPES AND STRUCTURING Hedge-based financing Technical appendix: Getting the most out of your quants Break-out boxes REAL OPTIONS What are real options? Break-out boxes Technical appendix: Diagrammatic notation VALUE AT RISK AND OTHER RISK MEASUREMENT TECHNIQUES Break-out boxes APPENDIX: UNITS OF MEASUREMENT NB – These contents are provisional and subject to change until final publication