Energy Trading and Investing: Trading, Risk Management and Structuring Deals in the Energy Market

Excellent book which describes how physical constraints significantly impact the trading of electricity and natural gas. It explains the physics behind pipelines and power systems in a fairly accessible way however I imagine it would be quite difficult for people who have never done physics. It introduces risk management and options in an easy to read fashion.The only reason I gave it four stars is due to the incongruous 20 or so pages in the middle of the book in which the author gives us his significantly misinformed view on renewable energy. I hadn't heard this one before, but apparently wind energy's ability to limit oil imports is seriously offsetted by the need for lubricating oil in the wind turbine.Two minutes on google tells me that a typical wind turbine (1.5MW) consumes about 100L of oil per year. That's about 1MWh of energy. A wind turbine has a typical capacity factor of 30% which means it would generate approximately 4000MWh of energy per year. Thus the energy used for the lubrication oil is 0.025% of the energy generated.So my advice is to buy the book but skip chapters 4.5-4.8.

During my last year of studies as an undergraduate, I bought and consumed Davis's publication due to my interest in the energy sector. The information he presented is clear, concise and accurate. I found his approach to be refreshing for someone with no previous industry experience or knowledge. He avoids technical jargon and presents the often complex information as simply as it is able to be presented. Through the knowledge gleaned from his work, I am fortunate to have been offered a position as an hourly energy trader in the MID-c region. Though I would've enjoyed more specific information on bilateral markets, I enjoyed all the relevant RTO / ISO information.

This is a broad, multidisciplinary topic and Mr. Edwards book takes the approach of making this book "a mile wide and an inch deep." If you knew nothing about the various technical and financial sides of the business, you would learn a lot from this book. But then, why would you gravitate to this book if you didn't already have some background? I feel like both finance types and engineering types will come away with a few good nuggets, but also a bit disappointed at the lack of depth.

I'm not done reading this book, but so far it has been a fantastic introduction to the energy markets. Some of the material is repeated over and over, but it only helps reinforce the ideas. There are also some typos, but not to the point of being annoying. If you are looking for a great intro to the energy markets, including some of its physical characteristics (e.g., what it is, where it comes from, how its transported, how it's processed, and where it ends up), then this is the book for you. The author has substantial experience in the energy markets and he wrote this book as something he wishes he had read when he got started.

Pluses: a good introduction for a "non-commerical" person. Authors wisdom and experience are visible in clear and synthesised presentation. Minuses: the math is very simplistic. The technical explantations are simplistic or borderline wrong - clearly, the authour is does not have a technical background. A good reading, but, probalbly, would not keep it as a reference book.

For some background, I read the entire book. I do like how he structured each chapter for improved readability. The best parts are the chapters summarizing each industry segment in energy. However, when he gets to the technical details towards the back, it's clear he doesn't fully understand the material himself. It seems like he was taught by someone else in haste and ineffectively tried to convey the information to his readers. If this was a 'brief primer on energy markets' book, I'd rate it 4 stars. It fails as an energy trading and investing guide. If anything the table of contents provides the most value so you have a list of keywords you can research elsewhere.

I like this style of writing as it is clear and concise. It is also structured so that you can focus in on your relevant sub-topics and written clearly and in a fashion appropriate for those looking to enter the space.

Excellent overview of the energy markets. I am a lawyer in the energy business and wanted to better understand the business driving the legal issues. This is a great book for that. I don't think I am now equipped to trade successfully in these markets (perhaps if I was already a trader in other markets, this would give me enough infor about these specific markets) but I certainly better understand the business.

Agree that this is a bit textbook like. Focus is on American markets but still a good overview of functionality of markets. Things have since moved on, but the main concepts are still there.

A great introduction to the energy market from both the physical and financial perspective. It could do with an update as it is very focused on the USA but contains nothing of the recent shale boom. I think it is a touch light on explanation in a few areas, it would be nice if it had a little more depth around 'the Greeks', VaR and option valuation.

Well written book and a good high level introduction to the energy markets without getting into too much mathematics.One negative about this book, however, is that it is heavily centred around North American energy markets (US in particular) and makes little to no connection with international markets.

Great introduction to the Energy market with bias towards the US power generation industry. Would have liked some of the maths concepts to have been elaborated on with slightly more indepth examples.

Must read ! For those interested In Energy Products this is the perfect book. Well written the author has a real skill for clarity