linking energy trading and logistics

8/7/2019 Linking Energy Trading and Logistics

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LINKING LOGISTICS ANDENERGY TRADING

Arunav Barooah

Ankush Dhiman

Kumar Siddhartha

MBA-ENERGY TRADING


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PRESENTATION OUTLINE:

Logistics..??

Energy Trading..??

Linking Logistics with Energy Trading


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LOGISTICS..??


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ENERGY TRADING..??

The energy market is a collection of interrelated

businesses focused on delivering sources of power

and heating fuel to consumers.

drilling for new fuel reserves transports these sources of power closer to end

consumers

generating power

Public utilities- distribution


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ENERGY TRADING

Energy trading is a broad term used to

describe the trading of energy cargoes and of

paper instruments

It is a complex system composing of several

markets :-spot , over the counter ,futures

market


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MAJOR COMMODITIES IN THE ENERGY

MARKET Oil and natural gas

Coal

Industrial metals and other precious metals Carbon emissions (greenhouse gases)

Power( nuclear, solar or wind)

Commodities like agricultural products


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LINKING LOGISTICS WITH

ENERGY TRADING

The energy business is in large part about

logistics: assuring the physical delivery of oiland other energy products across and

between continents as efficiently as possible


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Energy trade: bridging gaps between

requirements and capabilities

The fragile supply- demand balance across

energy carriers can only be achieved today

thanks to the transportation of respective

energy carriers from net-exporting countries

to net-importing countries.


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ROLE OF LOGISTICS

In the past

Service the needs of the energy system

Moving production off take

Satisfying refinery demands

Managing pipelines and

Implementing marketing plans

Now

Add value to a deal

Be creative


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LINKING LOGISTICS AND ENERGY

TRADINGTraders must constantly monitor factors affectingprices:

Supply and demand for products

Storage Pipeline capacity

Shipping

Geopolitical and environmental developments

Changes in relevant regulations, and

The weather.


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LINKING LOGISTICS AND ENERGY

TRADING

Aim of an energy trader:

Cost-minimisation

Cheaper shipping

Proper Scheduling of products

Terminal management

Trans-shipment and storage


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LINKING LOGISTICS AND ENERGYTRADING

The energy business is in large part about logistics:

assuring the physical delivery of oil and other

energy products across and between continents as

efficiently as possible Energy ( coal, gas and oil) are transported

internationally through mainly pipelines and ships.

The transportation cost contribute a lot to the value

of the final product and as such it becomes

important for traders to manage the logistics

involved to bring down the costs.


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POWER SUPPLY CHAIN


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Trading organization rely on its logistic and

operation personnel to monitor and, to some

extent control the activities of its traders

besides providing support.

Traders and oil companies now have taken

additional steps of logistics management into

the approval system of a deal.


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For an energy trader constant monitoring of

the bunker rates , geopolitical conditions,

weather conditions , time taken for loadingand unloading and other such specifications

become very important as they add

substantially to the costs


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CONCLUSION

Traders have to work for a living; And

Logistics have become all important toprofitability.


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REFERENCES

http://www.cygnusindia.com/Our%20Product%20Basket/In

dividual%20Reports/Infrastructure%20Services/TOC%20-

%20Indian%20Logistics.pdf

http://en.wikipedia.org/wiki/Logistics http://www.upes.ac.in/mba-energy-trad.html

http://en.wikipedia.org/wiki/Energy_trading

linking energy trading and logistics

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