Fuel Management Master Class

Fuel Management Master Class - Click image to direct event website.


Mastering the essentials of global markets for oil, gas, coal, renewable and strategize your fuel   purchase management

23 – 26 June 2014, Singapore

Official event website: http://neo-edge.com/event-line-up/commodities-supply-chain/fuel-management-master-class/


For full agenda, please email us your detailed contact information to rueburn@neo-edge.com . Please indicate subject “Fuel Management Master Class”. 

Some 60% to 80% of ongoing costs for electric generators and somewhat lower percentages for energy intensive industries are made up of fuel. For electric utilities and IPPs fuel purchasing also tends to be the greatest source of troubled relations with vendors and suppliers. It is also an area where in many instances management improvements with little or no capital cost can result in significant cost savings.

Fuel purchasing is a function where it is critical that all levels of management understand the fundamentals of the market. Unfortunately it is also a subject upon which there is a great deal of mythology in the business press with discussions of subjects such as the imminent advent of “peak oil” or “peak gas.” All too often judgment on fuel purchasing is made in response to such media discussion.

The goal of the workshop is to provide an understanding of how global markets for oil, gas and coal work. This involves an examination of market fundamentals: reserves, the cost of production, and demand. Also included is a discussion of how environmental concerns play an increasing role in inter-fuel competition.

The workshop includes an examination of the rise and importance of paper markets in oil, coal and natural gas, first in North America and Europe, and now developing gradually in Asia, Africa and Australia. There is a critical analysis of how price data is gathered for oil and coal and then published and the role which derivative markets play in spot market pricing.

The various factors which play a role in the development of a purchasing strategy will be reviewed. Ultimately the various factors boil down to trade-offs between supply security and price. Utilities with access to nuclear hydro power may have greater freedom to buy more spot coal or oil in times of soft market conditions. In other instances, the existence or absence of local resource may play a major role in shaping decisions about fuel selection and combustion technology. Increasingly government policies driven by environmental concerns are playing a role in fuel selection and efficiency of fuel use.

Fuel contract design and language is a major part of the workshop. We shall examine alternative wording for contract fundamentals dealing with volume and quality. Pricing provisions will be an important part of the discussion. Indexation to published prices, long common in the oil markets is becoming increasingly common for coal in Asia. For almost a decade it has been the norm in the European coal market. Although pricing is increasingly determined by reference to published indices, it continues to be important for the buyer and seller to agree to the details of the force majeure, dispose resolution and termination provisions. As well, in order to avoid the risk of disputes and misunderstandings, contracts should carefully define provisions for custody transfer, quality testing and weighing.

The focus of this Master Class will be on fossil fuels purchasing: coal of various sorts, natural gas (pipeline and LNG) fuel oils and if there is participant interest, biomass purchasing can be included. The geographic focus will be South and East Asia, Africa and South America. Experience from North America and Europe will be drawn upon if it is particularly relevant to these other markets. Principals and techniques covered will be applicable to utilities, IPPs, large industrial fuel users such as cement and chemical plants. The Workshop will span a broad range of issues from the primary factors driving global fossil fuel markets and national energy security to the details of drafting effective fuel purchase contracts. Contracted provision language will be drawn from a library of over 300 international fuel contracts. The rising impact on fuel markets of renewables and environmental concerns.



For full agenda, please email us your detailed contact information to rueburn@neo-edge.com . Please indicate subject “Fuel Management Master Class”. 

In this master class we will be discussing the market movement of both conventional fuels (Oil, coal, gas/LNG) and renewable resources which are used for power generations. We will explore many purchase strategies and analyse tradeoff between supply security and pricing. Various hedging techniques will be discussed together with the drivers of price volatility. Contracts provisions will also be an area of focus in this master class in order to cope with volume and quality shortfalls.

Global Market Basics:

 We will focus on the fundamentals of supply and demand: the size and location of the reserve base, production costs and the interaction between demand and price. While short-term price changes are often the reaction to geopolitical or financial events it is possible to pick out clues to form an understanding of the longer term direction of fossil fuel prices. An assessment of decades of prices enable a much better understanding how price changes in oil, natural gas and coal impact on one another. Environmental concerns increasingly play a role in fuel selection and inter-fuel competition.

Choice of Purchasing Strategy:

For IPPs the choice of purchasing strategy (mixture of short-term and long-term contracts) is often a product of the security concerns of the banks and the economic needs of the project developers. For utilities the trade off is between price and the need for security of supply (which may vary with season and type of fuel). Other considerations, such as availability of hard currency or a desire to foster regional economic development may also play a role. Industrial fuel purchasing is subject to the price and flexibility needs of the ultimate product produced, e.g., cement, chemicals, pulp, and paper. Many buyers of all types are increasingly using derivative markets to dampen price volatility and to provide greater price predictability.

Prices and Hedging

Trend in recent years for all fuels has been to short term pricing (quarterly or monthly) even in long-term contracts. Energy indexes are attracting increasing interest from regulators in the US, Europe and Asia. This is accompanied by the rise of paper markets for all fuels. There is a great importance of paper markets in Europe and the US and gradual development of derivatives trading in oil and coal in Australia, Singapore, China, etc. In the midst of this new financial legislation in the US (Dodd-Frank) and proposed in Europe will alter derivatives trading globally.

Major Contractual Provisions

Experience shows that things go unexpectedly wrong in many medium and long-term fuel purchasing arrangements. The goal is to build a contract structure which is not only fair to both the buyer and the supplier but also robust enough to withstand the numerous problems which will arise during the course of a long-term business relationship. Even spot purchase contracts are about much more than price. Real world outcomes indicate that things frequently can go wrong: mines flood or have strikes; trains derail; and coal loaders break down; natural gas fields have unanticipated production problems. Contracts should cope with all of the volume and quality shortfalls in the product that can be anticipated. There should also be clearly defined dispute resolution mechanisms which allow for timely settlement of contentious issues.


Attendee Profile

All those involved in the Fuel Management Programme
  • Contract / Lawyer / Legal executive.
  • Business Development
  • Fuel Marketing Executive
  • Government Energy Regulators/Auditors
  • Project Financier
  • Policy analysts
  • Fuel Supply Planner
  • Energy company planners
  • Energy intensive industry managers
  • Corporate planners
  • Regional development specialists

For full agenda, please email us your detailed contact information to rueburn@neo-edge.com . Please indicate subject “Fuel Management Master Class”. 

From the following industries:

Fuel Suppliers (Fossil AND Renewable)
  • This entire workshop focuses on the contract and rationale governing Fuel Management Programme. Understand Buyer decision making process and it translate into the contract and negotiation phase. In an interactive mode, it will navigate through important provision of a Fuel Supply Contract. Manfred Raschke has worked on energy projects worldwide since 1987.
Companies with substantial amount of Fuel usage
  • Many industries uses fossil fuel as primary means of energy generation in their production/manufacturing process. Learn how you can streamline your decision making process, and garner substantial saving on your fuel cost.
Electric Company Executive
  • IPPs and Utilities utilize large amount of fuel to meet the rising energy demand in Asia. This workshop covers every relevant aspect of your undertakings on Fuel Management: We will also compare the usage of conventional fuels and their renewable counter part. All key contracts, the comparative experience distilled from more than 50 countries worldwide. This is adapted specifically for the Asia.
Ministry officials and Energy Regulators
  • This workshop covers select aspect confronting Ministry and Country Energy Regulators; Fuel Supply Security, regulatory incentives, and many more.
Bank and Financial Institutions
  • This workshop will show the economic reasoning behind fuel/energy supply project. Understand how their performance and contract formation can impact your risk assessment on decision to lend. Understand where are your “loaned” money going to, and its implications.
New Ventures
  • For entities evaluating entry into Fuel Supply business, but does not know what are its pitfalls and challenges, this workshop will present and dissect the business from conception to operationally ready state.

For full agenda, please email us your detailed contact information to rueburn@neo-edge.com . Please indicate subject “Fuel Management Master Class”. 


Trainer Profile

The trainer has 32 years of experience in project development and market analysis in global fossil fuel markets. He has been involved with every type of fossil fuel (including orimulsion and oil shale) in some 50 countries and six continents. In Asia, where most future growth in fossil fuel demand is expected to occur, he has been involved with mine and generation projects in China, India, Indonesia, Philippines, Sri Lanka, Pakistan, Taiwan, Malaysia, Thailand, Vietnam and Mongolia. Dr. Raschke’s experience in fuel purchasing and mine development has been enhanced through serving as an expert witness in numerous litigation and arbitration assignments dealing with commercial terms and conditions in fuel supply agreements. He is currently   writing a book on the future outlook for fossil fuels.

Prior to starting his private consultancy, the trainer was with Dun & Bradstreet Technical Economic Services (VP, Energy Group. Cambridge, MA), Temple, Barker & Sloan (Associate, predecessor of Mercer Consulting. Lexington, MA)

Academically, he has had Post-graduate fellowships and research grants at the Academia Britannica, Rome, Italy; British Institute, Athens Greece; German Academy, Cairo, Egypt; Oxford University, Oxford, U.K.; and the India Office, London, U.K. He has held Teaching Fellowship and Professorship at various institutions (UC Davis, CA; Duke, NC; and Harvard, MA). He holds an Economic History PhD from Harvard.


Hotel Information

Hotel Novotel Clarke Quay Singapore

  • 177A River Valley Road
  • Singapore 179031
  • Natalie Poh
  • Sales Manager
  • DID: (65) 64338713
  • Fax: (65) 64338708
  • General: (65) 63383333
  • Email: h5993-sl3@accor.com


Please quote Fuel Management Master Class by Neoedge when you book to enjoy Corporate Rate. Thank you!

For full agenda, please email us your detailed contact information to rueburn@neo-edge.com . Please indicate subject “Fuel Management Master Class”. 

Fuel Management Master Class

Fuel Management Master Class