WTM Spoke at the 2017 Platts Gas Storage Outlook Conference At the 2017 conference, WTM Energy showed another valuable but neglected component of storage extrinsic value exists:
Seasonal spreads are historically low, so storage operator demand charges are taking a big hit
But with low spreads comes high extrinsic value and operators need to go after that value
WTM estimated the extrinsic value now to be almost three times intrinsic value for Gulf, slow-turn storage with standard charges
WTM then discussed two major ways how operators could collect that whole extra extrinsic value: Parking and loaning spot to outer months using the operator’s storage; forming a trading shop to optimally trade the operator’s storage.
At the 2016 conference, WTM Energy showed another valuable but neglected component of storage extrinsic value exists:
This component is not derived from volatility
It comes from expected peaks and valleys of cash prices within months
The strategy of baseloading while collecting some cash-price opportunities misses collecting it
Only a cash trading storage model can maximize it
WTM’s New Storage Model Is Here!
SOSv3.0 – A Comprehensive, Profit-Maximizing Approach from Valuations to
Recommendations for Optimally Injecting, Withdrawing and Hedging
Traders now have the ability to enter short-term forecasts of cash prices and see their effects on optimal results
The user interface is much more attractive and easy to navigate
A fully automated and integrated performance tracker now exists: See through time if you are realizing your budgeted value from the beginning of the year
More operational constraints can now be optimized around
Much more value can be had by just trading cash prices to collect intrinsic rather than delivering pro-rata for a month. If this idea intrigues you – it doesn’t everyone – then contact us and we’ll show you.
Journal of Energy Markets publishes Dr. Cliff Parsons paper on the WTM storage model.
"It’s September, I’m 75% filled, but cash is 15 cents over prompt now: Do I inject or withdraw?" The WTM storage model can tell you!
The WTM natural gas storage model is a next generation storage model that gives not just (accurate) storage values,
but also gives profit maximizing results each day for when to inject, when to withdraw, and how to best hedge the extrinsic.
It is these daily results that make the WTM storage model cutting edge: No other storage model on the market produces such profit
maximizing results.
So now you can use a storage model to help you two ways: (1) in valuations for smarter bidding, (2) in daily trading and hedging for monetizing those valuations.
Just think of how much more profit can be had if the WTM model makes you an extra 5 cents per MMBtu between the two ways on your working gas capacity!
AND STORAGE OPERATORS . . . even though you can't take title to working gas, WTM can show you how
to use the model to collect much more extrinsic, and actually even increase extrinsic, rather than merely
selling firm contracts and settling for low percentages of extrinsic.
We have great promotional offers on site licenses at this time.
Ask about them; you'll be pleasantly surprised!
“The Model Would Have Generated
Fabulous Profits over Prior Years.
Back Testing Results Show This!”
"Current storage models, which are nothing more than rough attempts at modern alchemy, are frustrating to storage traders. That is why I created the WTM storage model!"
