Strategies and Tools for Risk Management
Benchmarks increasingly permeate the petrochemical industry. Forward curves are becoming common for major commodities. Understanding them, how they are developed and used, and how they are different from forecasts is critical to optimizing your business performance and risk management. This program will explore why benchmarks exist, how they operate, the role of risk management in an increasing compliant conscious world, tools for risk management, and real world applications.
The key to properly assessing any market is consistent application of a sound methodology. However, methodologies are not “one size fits all” – and employing a methodology that was not developed specifically for many markets can result in assessments that disrupt commerce rather than facilitate it. This is especially true in petrochemical and plastic markets, where methodology needs differ for aromatics, olefins, solvents, polymers and intermediate chemicals. Determining the factors that reflect how a market truly transacts can be more of an art than a science, but it is crucial to the marketplace’s ability to function in a proper and compliant manner, and to evolve.
Market evolution towards greater commoditization is a historical trend that has been repeated many times, for many different commodity products. US Olefins markets are the latest commodity to see rapid evolution. Ethylene and propylene markets have become more liquid and transparent, driven by the growth of the US as a major olefins producer and exporter, the significant underground storage resource in the USGC, and open-access midstream services. Producers and consumers can capitalize on this commoditization with physical and financial sourcing and risk management strategies that have only recently become possible.
Ethylene and propylene markets are changing as olefins production expands globally. The need for a global suite of petrochemical hedging tools is becoming increasingly important as more ethylene volume is exported from the US Gulf coast. Mark Quiner will provide historical context behind efforts to build petrochemical hedging tools. In a changing global environment, he will talk about modern petrochemical risk management tools and how producers, consumers and exporters can use these tools to manage price risk.
Executive Director PetroChem Wire by OPISRead Bio
Vice President, Global C4 & Elastomers Chemical Market Analytics by OPISRead Bio
Director, Research & Product Development CME GroupRead Bio
Global Head of Petrochemicals MarexRead Bio
Director Petrochemical Marketing Enterprise Product PartnersRead Bio
Director, North America NGLs OPIS, A Dow Jones CompanyRead Bio
Kathy Hall Executive Director PetroChem Wire by OPISPrior to joining OPIS by Dow Jones, Kathy was the founder of PetroChem Wire, a daily news and pricing service dedicated to the US olefin and polymer markets. The company’s ethylene and propylene assessments serve as benchmarks for futures contracts that trade on the Chicago Mercantile Exchange (CME) and the Intercontinental Exchange (ICE) and are widely used by the petrochemical and plastics industries as a reference in supply contracts and also spot market transactions. In addition to its daily reports, PetroChem Wire also publishes weekly reports about PVC and also recycled plastics. The OPIS PCW Recycled Plastics Weekly has published continuously since 2010. In 2018, OPIS acquired PetroChem Wire. Kathy now serves as OPIS’ executive director for global petrochemical products. Prior to founding PetroChem Wire, Kathy spent more than 10 years as an editor and manager at Platts, focused on petrochemical markets.
Bill Hyde Vice President, Global C4 & Elastomers Chemical Market Analytics by OPISBill Hyde is the vice president of Olefins & Elastomers at Chemical Market Analytics. Mr. Hyde is a member of Chemical Market Analytics by OPIS a Dow Jones Company where he leads a group focused on analyzing markets related to C4 Olefins, synthetic and natural rubber, and tire raw materials. He has been consulting in this market since 2002. Hyde began his career with the Union Carbide Corporation in 1990 where he had various positions including production engineering, optimization, planning, and logistics. In 2000, he joined Texas Petrochemicals as a Business Analyst. In 2002, Hyde joined CMAI, which was acquired by IHS in 2011, in the Olefins Consulting Practice with an emphasis on C4 Olefins and rubber, assuming responsibility for that practice in 2006. The Base Chemicals Group of IHS Markit, which includes the C4 Olefins and Elastomers Practice, became Chemical Market Analytics by OPIS a Down Jones Company in June 2022. He has published a number of papers on the Olefins and Elastomers industries as well as presented at numerous Olefins and Elastomers Conferences around the world. Hyde has B.S. and M.S. Degrees in Chemical Engineering from Brigham Young University and an M.B.A. from Tulane University.
Elizabeth Hui Director, Research & Product Development CME GroupBio coming soon.
Mark Quiner Global Head of Petrochemicals Marex
Mark Quiner is the leading broker of physical and financial olefins in North America. He assists every major producer, consumer and trader in moving physical ethylene and propylene volumes across the US Gulf Coast, and in international product movements. He also brokers exchange-cleared olefins derivatives in the US, Europe and Asia, helping companies across the value chain globally to hedge their price exposure. He is the the global head of petrochemicals at Marex, and manages a team spanning North America and Asia. Marex is a UK-based commodities company.