Financial modeller (oil & gas valuation models)??

hamb · July 16th, 2005, 4:28 pm

Hi, Anyone here is doing financial modelling for the purpose of oil & gas valuation? What are the differences between this job and building financial models for banks? Is it a kind of quant job? Any clarification is appreciated. ~~

moogle · July 16th, 2005, 5:35 pm

I've heard from people that modelling commodities(for energy trading) or stocks/bonds are almost the same. The behaviors are slightly different. I might be wrong though so don't take my words for it.

gjlipman · July 16th, 2005, 8:56 pm

A fair bit of the skills are the same. One major difference is that financial models for banks tend to be more describable by mathematics - when building models for energy, the real world crops in a bit more - events like plant failure, terrorism, etc do not follow the efficient market hypothesis, and do not arrive at Poisson intervals.

hamb · July 17th, 2005, 10:42 pm

So I guess companies who are interested to recruit this kind of people are IBs and big energy firms?

moogle · July 18th, 2005, 2:29 am

yep. I think you can think of it just as another product