About This Career
Energy Traders buy and sell both physical and /or financial energy products to optimize a company’s financial returns. They review and analyze energy markets to understand current supply and demand, logistics, and quality differential trends and combine it with factors such as weather and political environment to manage storage volumes and identify opportunities to take advantage of market price differentiations. They also provide hedging strategies and execute a strategy for production working with company energy marketing departments.
Energy Traders must keep an eye on multiple factors and be able to quickly make decisions to take advantage of an opportunity to get the best price and making a profit for their company. Traders analyze data to identify trends, gaps and or logistical shorts in the market.
They interact with internal and external clients, other colleagues on trading teams and/or commodity vendors. Energy traders use computer software programs and other analytical tools, such as meteorological data to help determine which way energy prices might be headed.
Education This occupation requires an undergraduate degree. Most traders have a finance, business, economics or mathematics background. Energy Traders typically need five years’ experience in financial trading, analytics and supply chain logistics / pipeline schedulers. Experience in these areas is critical to being able to identify financial opportunities. The ability to quickly assess all information, foresee financial opportunities and be willing to make decisions are critical to success in this role.
Employment Energy Traders are employed in onshore environments in the exploration and production, oil sands and pipeline sectors of the oil and gas industry.
Example Titles: North American Energy Traders or International Energy Traders, related careers may use Financial Analyst, Marketing Analyst, Data Analyst
- The following are examples of progressive or lateral career paths for this occupation
- Banker to Treasurer to Corporate Finance/Scheduler
- Business Development
High Stress Situations
Some Overtime Required
- Utilities, including renewable energy
Business and Operations Support
Exploration and production
- Post-secondary degree
- While there is no industry standard certification for this occupation, working towards a CFA or related Master’s degree may be considered desirable by some employers.
- Specific health and safety certifications will be determined by job requirements.
- Typically, five years of industry experience in supply chain logistics, analytics or pipeline scheduling is required. Experience in financial trading can also be a route into this occupation.
- The key to this positions is the ability to quickly analyze information and see/project where the opportunity is.