Читать книгу Fuel Hedging and Risk Management - Gajjala Vishnu N. - Страница 8

“If a commodity were in no way useful… it would be destitute of exchangeable value, however scarce it might be, or whatever quantity of labour might be necessary to procure it.”

– David Ricardo

Throughout history, the availability of sources of energy and the means to produce, transport and harness it efficiently have been a necessary conditions for the growth of civilizations. Over the last century, fossil fuels have become the dominant source of energy globally, and companies have explored new sources and developed new technologies to access these reserves. But what is fuel without fuel consumers? Fossil fuels could have remained a topic confined to geologists' circles if it were not for the development and popularity of fossil fuel-based transportation machinery – such as cars, planes, and ships – has made these fuels essential to human life. It has been suggested that the usage of fossil fuels is an important factor behind the doubling of the world's population over the last century. Over the past few decades, the scarcity or abundance of these resources has been significantly influenced by the demand for these fuels, as consumers develop new uses for fuels, use fuels more efficiently, or substitute them with other energy sources.

This chapter emphasizes the strategic nature of energy commodities and introduces the energy markets by discussing the principal fuels transacted, the uses of these fuels, their origin, and how they are brought to market. Thereafter, the chapter examines the factors that influence fuel prices, including geopolitical risks and short-term supply/demand balances, as well as long-term fuel market considerations that contribute to the volatility of energy prices.