“Energy Derivatives: Pricing & Risk Management“, by Les Clewlow and Chris Strickland. Published by Lacima Group, 2000.

Energy markets around the world are rapidly being deregulated leading to unprecedented levels of competition in the energy industry, increased exposure to the prices on energies, and exposing participants to potentially catastrophic risks.

This book provides a comprehensive and technical treatment of the valuation and risk management of energy derivatives, within the oil, gas, and electricity markets, and looks in depth at:

• the behaviour of spot and forward prices
• modelling and estimating volatility
• structures that exist in the energy derivatives market and their applications
• pricing and hedging of energy derivatives using single and multi-factor spot price models
• using simulation and trinomial trees for pricing caps, floors, swaptions, and path-dependent securities such as barriers, Asians, lookbacks, and swing options.
• multi-factor models of the forward curve, including volatility estimation and pricing of exotic derivatives
• risk management of energy derivative positions
• value-at-risk and credit risk for energy derivatives.

A large proportion of the content is original research by the authors who have applied over 20 years combined derivatives experience and research to the energy markets.

“Electricity Markets: Pricing, Structures and Economics“, by Chris Harris. Published by John Wiley & Sons, 2006.

Understand the electricity market, its policies and how they drive prices, emissions, and security, with this comprehensive cross-disciplinary book. Author Chris Harris includes technical and quantitative arguments so you can confidently construct pricing models based on the various fluctuations that occur. Whether you re a trader or an analyst, this book will enable you to make informed decisions about this volatile industry.

“Managing Energy Risk: An Integrated View on Power and Other Energy Markets“, by Markus Burger, Bernhard Graeber and Gero Schindlmayr. Plublished by John Wiley & Sons, 2007.

Managing Energy Risk closes the gap between modern techniques from financial mathematics and the practical implementation for trading and risk management. It takes a multi-commodity approach that covers the mutual influences of the markets for fuels, emission certificates, and power. It includes many practical examples and covers methods from financial mathematics as well as economics and energy-related models.

“Energy Markets: Price Risk Management and Trading“, by Tom James, Published by John Wiley & Sons, 2008.

Energy companies are increasingly exposed to price fluctuations in the volatile energy markets since the turn of the new century. Energy prices are affect by numerous factors such as geographical and political environments, developments in legal systems, OPEC decisions, speculative investment in the market as well as demand and supply.

Energy Markets: Price Risk Management and Trading is the practitioner′s guide to trading the markets and optimizing company performance using the correct price risk strategies and tools. This book will also help you put in place the strategy, management controls and reporting structures necessary to ensure that trading or hedging progr5ams achieves its goals and does not add unexpected or unwanted risks to your firm.

As a direct trader in these markets or as an investor in hedge funds in the energy sector, this comprehensive book will give you an insight to the financial energy markets and their operation.

Inspired by the success of the courses run by Professor Tom James in global energy and commodities trading and price risk management, this book includes a wealth of practical knowledge applied to the market place. It is required reading for anyone involved in managing risk in the volatile yet opportunistic energy markets.

“Petroleum Shipping Industry, Vol 2: Practices and Operations“, by Michael D. Tusiani. Published by PennWell Books, 1996.

This book give an expert overview of all aspects of today’s petroleum shipping industry. Volume II: Practices and Operations, covers all the aspects of vessel operation and other matters that are common to all vessel types.

• Oil: an introduction to shipping
• Why tanker owners?
• Pre-Onassis era
• Onassis era
• Post-Onassis era: Creating and dealing with the surplus
• Refinery operation
• Tanker demand
• Tanker design and employment patterns
• Forecasting tanker rates
• Oil pollution liability
• LPG carriers
• LNG carriers

“The Oxford Companion to Ships and the Sea“, edited by I. C. B. Dear and Peter Kemp. Oxford University Press, 2006.

The most comprehensive and authoritative reference book of its kind, The Oxford Companion to Ships and the Sea is a completely revised and updated edition of a classic volume that was first published in 1976, to huge acclaim. It brings together more than 2,600 entries on every imaginable aspect of the seas and the vessels that sail on them, from shipbuilding, yachting, diving, and marine mammals, to tidal power, piracy, and the literature and language of the sea. The Companion includes authoritative and fascinating entries on maritime history, including its greatest naval battles, like Pearl Harbor and Trafalgar, its most well-known ships, and its most famous individuals, both real and fictional.

This second edition provides significant new material on topics that have come to prominence in recent times, such as oceanography and marine archaeology. Key contributions on these subjects include climate change, environmental issues, marine pollution, and marine wildlife. Among the many brand new entries to this edition are up-to-the-minute articles on underwater vehicles, tsunamis, warfare at sea, the Economic Exclusion Zone, and ship preservation. Entries are fully cross-referenced, and the text is now illustrated with over 260 detailed drawings, making it more accessible than ever before. It will prove an essential point of reference for anyone with a professional or amateur interest in the seas, from yachtsmen, maritime historians, and oceanographers, to naval architects, environmentalists, and armchair sailors.

“Financial Calculus: An Introduction to Derivative Pricing“, by Martin Baxter and Andrew Rennie. Published by Cambridge University Press, 1996.

The rewards and dangers of speculating in the modern financial markets have come to the fore in recent times with the collapse of banks and bankruptcies of public corporations as a direct result of ill-judged investment. At the same time, individuals are paid huge sums to use their mathematical skills to make well-judged investment decisions. Here now is the first rigorous and accessible account of the mathematics behind the pricing, construction and hedging of derivative securities. Key concepts such as martingales, change of measure, and the Heath-Jarrow-Morton model are described with mathematical precision in a style tailored for market practitioners. Starting from discrete-time hedging on binary trees, continuous-time stock models (including Black-Scholes) are developed. Practicalities are stressed, including examples from stock, currency and interest rate markets, all accompanied by graphical illustrations with realistic data. A full glossary of probabilistic and financial terms is provided. This unique, modern and up-to-date book will be an essential purchase for market practitioners, quantitative analysts, and derivatives traders, whether existing or trainees, in investment banks in the major financial centres throughout the world.

“Options, Futures and Other Derivatives, 7th edition“, by John C. Hull. Published by Pearson, 2008.

For undergraduate and graduate courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management.

Designed to bridge the gap between theory and practice, this highly successful book is the top seller among both the academic audience and derivative practitioners around the world.

“Commodities and Commodities Derivatives, Modeling and Prices for Agriculturals, Metals and Energy“, by Hélyette Geman. Published by John Wiley & Sons, 2005.

The last few years have been a watershed for commodities, cash and derivatives industry. New regulations and products have led to an explosion in commodities markets, creating a new asset class for investors that include hedge funds as well as university endowments, and has resulted in substantial growth in spot derivative trading.

This book covers hard and soft commodities (energy, agriculture and metals) and analyzes:

• Economic and geopolitical issues in commodities markets
• Commodity price and volume risk
• Stochastic modeling of commodity spot prices and forward curves
• Real options valuation and hedging of physical assets in the energy industry

It is required reading for energy companies and utilities practitioners, commodity cash and derivatives traders in investment banks, the Agrifood business, Commodity Trading Advisors (CTAs) and Hedge Funds.

Findur is OpenLink’s fully integrated financial markets solution, offering a straight-through-processing (STP) environment that supports the entire transaction management life cycle, covering a comprehensive list of instruments. TUI needed a single, integrated Treasury / Commodity management system to manage, control, analyse and report their financial exposures and positions. TUI was able to go to into production within eight months – from the design phase, beginning in September 2008, and finishing in mid-April 2009.

TUI has operations in a large number of countries and operates more than 150 aircraft. Given that the volatility of foreign exchange (FX) rates and fuel prices has greatly increased in the past two years, the need to effectively manage these risks, coupled with a stronger focus on cash management is crucial. It was of critical importance that the solution use a single database, with multi-site access interfaces to banks and Reuters (FX and bond data), to provide the functionality needed to deliver hedge accounting and advanced market risk assessment capabilities as well as user-friendly reporting.

OpenLink’s CEO Kevin Hesselbirg commented, “We are very pleased that OpenLink was the vendor of choice, providing TUI with the Findur solution. With its leading Treasury and Commodity management capabilities, it was the “best of breed” application that TUI had been seeking and was the alternative to the existing disparate legacy systems that were not integrated, and did not provide TUI with the requisite tools required to properly manage their financial and operational risks.”

About TUI Travel PLC

TUI Travel PLC is a leading international leisure travel group which operates in approximately 180 countries worldwide and serves more than 30 million customers in over 25 source markets. Headquartered in Crawley, near Gatwick airport in the UK, the Group employs approximately 50,000 people and operates a pan-European airline consisting of over 150 aircraft. The company mainly serves the leisure travel customer and is organised and managed through four business Sectors: Mainstream, Specialist & Emerging Markets, Activity and Accommodation & Destinations. In the financial year ended 30 September 2008, TUI Travel had revenues of £13.9bn and an underlying profit before tax of £320m.