All New Wilmott Jobs Board                     (g)

Bloomberg: Quants Make Money From Plunge in Oil Prices


Scientists, mathematicians and engineers are beating star managers by capturing price discrepancies across markets, making money from a plunge in oil prices and on government bonds that human traders dismissed...

Quants are succeeding as some of the most well known stock and bond pickers struggle in forecasting the outcome of corporate mergers or gauging the impact of central bankers on markets. Richard Perry, Jeffrey Altman and Paul Tudor Jones are underperforming equity and credit indexes this year; billionaire John Paulson has lost 27 percent in his event-driven fund and hedge funds are closing at a rate not seen since the financial crisis.

Please read more here.

Sheikhs vs Shale: New Economics of Oil

The Trading Report: Guess What Happened The Last Time The Price Of Oil Crashed Like This?

Source: Bloomberg


( There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months.  The last time this happened was during the second half of 2008, and the beginning of that oil price crash preceded the great financial collapse that happened later that year by several months.  Well, now it is happening again, but this time the stakes are even higher.  When the price of oil falls dramatically, that is a sign that economic activity is slowing down.  It can also have a tremendously destabilizing affect on financial markets.  ... energy companies now account for approximately 20 percent of the junk bond market.  And a junk bond implosion is usually a signal that a major stock market crash is on the way.  

Please read more here and here.

Forbes' Columnist Gaurav Sharma: An Instructive Approach to Energy Trading Tenets






This was a great Thanksgiving with family and friends - the first one in New Orleans in a very long time. However, it was a bit touch and go with our turkey though. But that's a story for another time. LOL!

More seriously, I received an email from the marketing department at Wiley Publishers - packed with lots of great news about my energy book:

Kinda like receiving lots of early Christmas presents. Thanks LBS, Mr. Sharma and Wiley!

Models That Work


Some of the students in my Energy Trading classes seem to really like Bollinger Bands (BB).  I mean really seriously like them. During our midterm trading competition one team has so many BB's crammed into a screen of charts, that it made me dizzy looking at them. LOL!

One of my students (who is not a big fan of BB) emailed the photo above - taking a jab at his fellow BB-loving classmates. LOL!

Columbia University Energy Symposium


Columbia University's Annual Energy Symposium is the largest student-led energy event on campus, established to foster an exchange of ideas between industry professionals, students, and members of the academic body. The Symposium is jointly organized by the School of International and Public Affairs' Student Energy Association, the Columbia Graduate School of Business' Energy Club, and the Columbia Law Schools’ Environmental Law Society to offer a wide spectrum of perspectives that reflect the interdisciplinary nature of the energy industry today.


Every year, several hundred participants explore the key drivers impacting the energy business. On November 21, 2014, the 10th Annual Columbia University Energy Symposium will convene thought-leaders and practitioners from the energy sector, representing industry, government, civil society, and the broader Columbia and New York community to discuss the interplay between our existing systems and the players entering the energy world.


Please see more here.

FuelFix: Enron Castaway Shrugs Off Low Price To Become "Apple of Oil"

Nov. 5 (Bloomberg) — As crude prices plunge below $80 a barrel and billions are erased from the market value of energy companies, there’s one U.S. oil producer that most analysts still think makes a good buy.

EOG Resources Inc., formerly a part of the old Enron Corp. empire, has emerged as the most-recommended stock in the oil industry. The Houston-based company is the only shale producer expected to generate more cash than it spends both this year and next after oil fell to a three year low this week, according to data compiled by Bloomberg.

Please read more here.

Schlumberger Business Consulting Jobs


Schlumberger Business Consulting (“SBC”) is a leading global management consultancy focused solely on the energy sector. It is part of Schlumberger, the world’s largest oil and gas field services company.


SBC is actively recruiting from business schools (its headcount is growing at around 15% per year).
Permanent roles
SBC’s recruitment process is similar to that of the general management consultancies; hence there is a strong focus on case analysis.
The interview process is generally in two stages:
  • The first round comprises an HR interview and two case studies.
  • The final round will comprise two or more interviews with senior managers and partners to assess “fit” and a case study.
There are no specific deadlines for applying – interested candidates can apply throughout the year on the company website.
SBC does not have any structured internship programme in place. Most internships are offered on an ad-hoc basis. Candidates interested in doing an internship at SBC are encouraged to apply, and the company would review these applications on a case-by-case basis to assess if they have any available opportunities.  
Please see more here.

Rigzone: Oil & Gas Job Fairs

Enjoy the Wild Wall Street Roller Coaster Ride!


Some of my students asked me what I thought about all the chaos in the financial and energy markets during the past week. The first thought that popped into my head was the song Roller Coaster by the  Ohio Players.  But then I had to remind myself that my role as the professor is to appear academic when answering my students' questions.  LOL! 


So I pontificated for a bit and then reminded them of following:

  • The importance of the news tips they submit each week for our energy trading class is to get them in the habit of analyzing risk and understanding the geopolitics impacting the energy and financial markets.
  • The quantitative models and trading tools we use are rules of thumb - guestimates.  They are not to be used in a vacuum.
  • These models and tools don't mean crap if they are unaware of what is going on in the real world.  


Graphics courtesy of PGM Capital.

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