GARP Webcast

Energy Markets
and Risk:
The Big Picture

Presented by:

Glenn Labhart
Partner, Labhart Risk Advisors
Chairman of EOC Committee, GARP ERP Program

July 15, 2010

8 Things to Know About the ERP Designation

1. The ERP is the first and only global professional designation for energy risk management

2. The ERP program creates a link between the physical and financial energy markets, instilling and understanding of
the unique risks associated with each.

3. Upstream and downstream processes, trading and structuring of diverse energy commodities, and the latest risk
management techniques are all incorporated in the ERP curriculum.

4. Since its inception, ERP registrations have grown 70%

5. ERP candidates are currently represented by 39 countries across the globe

6. More than 300 organizations have registered one or more candidates for the ERP Exam

7. More than 11 organizations have had five or more candidates register for the ERP Exam

8. Registration for the November 2010 ERP Exam is now open

For more information, visit www.garp.com/ERPExam

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The GARP Energy Series

The GARP Energy Series is a regular program of one hour webcasts

covering current topics of importance to all professionals in the energy
industry. Designed to be an educational, thought-provoking program, the
GARP Energy Series provides a forum for responsible discussion and
debate between industry leading practitioners, academics and regulators.

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Glenn Labhart

Glenn Labhart
Partner, Labhart Risk Advisors Inc.
Chairman, Energy Oversight Committee, GARP ERP

A recognized authority on trading and risk control, Glenn has more than 15 years of experience in the design and
implementation of sound risk management practices and policies for the energy industry. Prior to forming Labhart
Risk Advisors Inc., Glenn was senior vice president and chief risk officer at Dynegy Inc. where he managed the
risks associated with Dynegy’s foreign exchange, assets and energy commodities trading businesses. Glenn is a
frequent industry lecturer on risk management issues where audiences include industry associations, training
seminars and universities including Rice University, Texas A&M University and Columbia University. Glenn holds
a B.B.A. from the Abilene Christian University and is a graduate of the Rice University Executive Management
Program.

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Program Outline

• Current Supply and Demand Trends in Major Energy Markets

• Developments in New Markets

• Upstream and Downstream Processes Associated with Physical Commodities

• Identification, Measurement and Management of Key Physical and Financial Risks

• Trading and Structuring of Energy Based Transactions in the Financial Markets

• About the GARP ERP® Program

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What’s Happening in the Energy Markets?

• Financial Reform
 How will new financial regulations impact the energy markets?

• Crude Oil and Refined Products

 How short and long term supply be impacted by current events?

• Natural Gas
 Is shale gas a viable alternative and how will it impact the natural gas market?

• Electricity
 What is the “smart grid” and will it impact supply and demand for electricity?

• Alternatives
 Will alternatives meaningfully reduce demand for fossil fuels?

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Risk is Managed in Every Phase of the Upstream and Downstream Process

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Overview of Upstream and Downstream Processes in Oil and Gas
Production and Transportation of Raw Materials

Step 1 Production

On/Off Shore Crude

Production Natural Gas
Production

Natural Gas Transport

Step 2 Transportation

Crude Oil Transport

LNG

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Overview of Upstream and Downstream Processes in Oil and Gas
Refining, Storage and Transport of Refined Product

Oil Refining and Storage Natural Gas Fractionation

Step 3 Refining and Storage

Step 4 Transport of Refined Products

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Overview of Upstream and Downstream Processes in Oil and Gas
Storage and Distribution

Refined Oil Products Natural Gas

Step 5 Storage

Step 6 Distribution

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Overview of Upstream and Downstream Processes in Oil and Gas
End Users

Step 7 End Users

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Framework for Assessing Business Risk in the Energy Industry

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Identification and Measurement of Underlying Risks in Energy Assets

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Framework for Managing Energy Risk

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Key Trading Strategies and Products for Managing Risk

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Overview of GARP’s Energy Risk Professional (ERP®) Program

• Program Curriculum
 Physical Energy Markets
• Exploration and Production
• Crude Oil, Refined Petroleum Products, Natural Gas,
Liquefied Natural Gas, Coal, Electricity, Alternative
Energy
 Financial Trading Instruments
 Valuation and Structuring of Energy Transactions
 Risk Management in Financial Trading
 Financial Disclosure, Accounting, and Compliance

• ERP Designation Requirements

 Pass exam
• 8-hour, 180 multiple choice questions offered annually
in May and November
 2 years relevant work experience
• Not required to sit for exam
• Complete within 5 years of passing exam
 Continuing Professional Education (CPE)

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About the Global Association of Risk Professionals

GARP is the world leader in financial risk certification, education and training.

• Founded in 1996

• Not-for-profit association

• Over 100,000 members representing 195 countries

• Dramatic cumulative aggregate increase in membership

• Governed by Board of Trustees and Executive Committee

• Certification programs developed by practitioner oversight committees

• Financial Risk Manager - FRM®
• Energy Risk Professional – ERP®

• Risk education and training programs designed for immediate application of learning objectives

• GARP Risk Professional magazine

• Offices in Jersey City, NJ and London, UK

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Creating a culture of
risk awareness.TM

Global Association of
Risk Professionals

111 Town Square Place

Suite 1215
Jersey City, New Jersey 07310
USA
+ 1 201.719.7210

Minster House, 1st Floor

42 Mincing Lane
London EC3R 7AE
UK
+ 44 (0) 20 7397 9631

www.garp.org

bout GARP The Global Association of Risk Professionals (GARP) is a not-for-profit organization dedicated to the risk management profession through education,
A
training and the promotion of best practices globally. With a membership of over 100,000 individuals, GARP is the only worldwide organization offering comprehensive
risk management certification, training and educational programs from board-level to entry-level. To learn more about GARP, please visit www.garp.org.


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