Commodity Futures Trader

Archive for the ‘crude oil’ Category

Bedrock Energy Development is an Independent Oil and Natural Gas Company that specializes in acquiring drill sites and fields in petroleum rich areas of the domestic United States.

Petroleum or crude oil is found in the nature, a flammable liquid containing a complex mixture of hydrocarbons of assorted molecular weights, and other organic compounds that is established in rock formations underneath the earth’s surface.

Petroleum engineering is an engineering discipline that is concerned with the subsurface activities related to the production of crude oil or natural gas. This falls within the upstream sector of the oil and gas industry.

The combined efforts of geologists and petroleum engineers throughout the life of a hydrocarbon accumulation determine the way in which a reservoir is developed and depleted, and usually they have the highest impact on field economics. Petroleum engineering requires a good knowledge of many other related disciplines, such as geophysics, petroleum geology, and formation evaluation.

Petroleum engineering has turned into a scientific profession that involves extracting oil in ever more complicated situations of the world’s oil fields are found and exhausted. Improvements in computer modeling, supplies and the application of statistics probability analysis and new technologies like horizontal drilling and improved oil recovery have significantly improved the tools of the petroleum engineer in latest decades.

Brandon Davis of Bedrock Energy Development said, “discovering natural gas has urged energy experts and policy makers to begin seeking natural gas in their pursuit of a wide range of goals, easing the impact of energy price spikes reducing dependence on foreign oil, lowering “greenhouse gas” emissions and speeding the transition of renewable fuels.

North Sea Brent was located in the North sea at the beginning of the 60′s and is refined and consumed by; the UK, Norway, Germany, Denmark, and the Netherlands.

Brent Crude is one of many classifications of North Sea oil of which there are; Brent Crude, Brent Light, Sweet Crude, Ecofisk, Oseberg, and Forties. Brent crude is the biggest of all the classifications of North Sea oil, and its name originates from the bird the ‘Brent Goose’. Exxon and Shell adopted a policy of naming their oil fields after birds. The ‘Brent’ field itself from which the crude was taken, was found by the Shell petroleum company in the North East of Shetland back in 1971.

North Sea Brent Crude is used as a benchmark to price two thirds of all the oil traded on the international market. Other remowned classifications inclue Dubai Crude, and West Texas Intermediate (WTI), which is a sweeter and lighter form of crude. Crude oil acquires the term ‘sweet’ if the sulphur content is less than 0.5%. If it is higher than 0.5% it is considered ‘sour’ crude. Crude oil with a low sulphur content is the most coveted of all oil and is almost always refined into petroleum.

The most coveted, highly prized and sought after oil in both the North Sea and around the world is,’ Light-sweet crude,’ as its the easiest to refine into gasoline, kerosene and high quality diesel.

Global commodity trading now takes place on a growing platform of modern, transparent commodity exchanges across all time zones. Using agreed frameworks of rules and regulations and standard contract designs we now see a wide range of commodities traded between end users and primary producers. The result is that it is now much easier to buy and sell across the range of basic commodities from orange juice to gold bullion, from crude oil to coffee beans.

To add to the established commodity markets that most are familiar with, such as coffee and crude oil, now we are seeing developments and exciting innovation with the introduction of more specialised forms of futures contracts. A notable area where such product development is advancing is in the carbon emission market. Against a background of growing global awareness of the urgent need to abate emissions of greenhouse gases, the market for trading carbon permits is likely to see strong interest and growth going forward.

Going forward we can expect to see more growth in commodity market products which place a price on the environment, for example, new products in carbon emissions, plastics, water and even the weather.In fundamental terms, commodity trading is buying and selling of futures contracts which represent commodities. In the market, you may see the zinc producer hedging his future sales from a price drop or perhaps a food manufacturer hedging his cocoa purchases from a sudden price spike caused by crop failure.

Worldwide we now see commodity trading activity taking place on a range of modern, regulated commodity exchanges. A broad range of commodities are traded between end user buyers and producer sellers within a framework of standard contract rules and commodity trading regulations. In effect world commodity exchanges make buying and selling of raw commodities ranging from crude oil, copper and wheat to platinum and orange juice much easier.

To add to the established commodity markets that most are familiar with, such as coffee and crude oil, now we are seeing developments and exciting innovation with the introduction of more specialised forms of futures contracts. A notable area where such product development is advancing is in the carbon emission market. Against a background of growing global awareness of the urgent need to abate emissions of greenhouse gases, the market for trading carbon permits is likely to see strong interest and growth going forward.

Looking ahead we are likely to see further growth in commodity markets which price environmental externalities, with exiting developments in plastics, emissions and water. Commodity trading activity is basically the buying and selling of futures contracts covering an array of commodities. So you may see commercial end users using commodity futures contracts to protect themselves from sudden price spikes, while the palladium or sugar producer will hedge their future sales and avoid losses on dips in the price.