Professional Documents
Culture Documents
Study Guide
EXAM STRUCTURE
The distribution of questions for each section of the 2016 ERP Exams is
summarized below. The weights were chosen in conjunction with the EOC to create
a balanced curriculum that reflects the relative importance of topics and functions
across the energy value chain.
10%
35%
25%
30%
8 questions
28 questions
20 questions
24 questions
100%
80 questions
15%
25%
60%
9 questions
15 questions
36 questions
100%
60 questions
Glen Swindle. Valuation and Risk Management in Energy Markets. (New York: Cambridge University
Press, 2014).
Chapter 1
Context
Chapter 2
Chapter 3
Macro Perspective
2. Michel Crouhy, Dan Galai and Robert Mark. The Essentials of Risk Management, 2nd Edition. (McGraw
Appendix 1.1
*An asterisk (*) before a reading title indicates that the reading is freely available on the GARP website.
4
Andrew Inkpen and Michael H. Moffett. The Global Oil and Gas Industry: Management, Strategy and
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Fiscal Regimes
Chapter 10
Chapter 12
Refining
2. *An Introduction to Petroleum Refining and the Production of Ultra Low Sulfur Gasoline and Diesel
Chapter 15
6. Betty J. Simkins and Russell E. Simkins, eds. Energy Finance and Economics: Analysis and Valuation,
Risk Management, and the Future of Energy. (Hoboken, New Jersey: John Wiley & Sons, 2013).
Chapter 11
Chapter 16
Chapter 17
Oil Pricing
8. *Guide to the Incoterms 2010 Rules & Reference Chart. International Chamber of Commerce (2010).
9. *Transporting Crude Oil by Rail in Canada. Canadian Association of Petroleum Producers (March 2014).
10. *Moving Energy Safely: A Study of the Safe Transport of Hydrocarbons by Pipelines, Tankers and
Railcars in Canada. Canadian Senate Committee on Energy, the Environment and Natural Resources
(Aug 2013).
11. *Deborah Gordon. Understanding Unconventional Oil. The Carnegie Papers (May 2012).
*An asterisk (*) before a reading title indicates that the reading is freely available on the GARP website.
6
Vivek Chandra. Fundamentals of Natural Gas: An International Perspective. (Tulsa, Oklahoma: PennWell
Books, 2006).
Chapter 4
Chapter 10
Chapter 26
Coal Markets
Finance (2011).
Chapter 9
6. *International Energy Agency. Developing a Natural Gas Trading Hub in Asia: Obstacles and Challenges
(2013).
7. *Bassam Fattouh, Howard V. Rogers, and Peter Stewart. The US Shale Gas Revolution and its Impact on
Qatars Position in Gas Markets. Columbia Center on Global Energy Policy (March 2015).
8. *Oxford Energy: US NGL Production and Steam Cracker Substitution (Sept 2014).
9. *Jesse Thompson. Producers, Refiners View Strategies to Trim Texas Glut of Ultralight Condensate Oil.
Federal Reserve Bank of Dallas (Q4 2014).
10. *Richard K. Morse and Gang He. The Worlds Great Coal Arbitrage: Chinas Coal Import Behavior and
*An asterisk (*) before a reading title indicates that the reading is freely available on the GARP website.
8
Daniel Kirschen and Goran Strbac. Fundamentals of Power System Economics (West Sussex, UK: John
Wiley & Sons, 2004).
Chapter 3
Chapter 4
Chapter 6
Transmission
Chapter 7
Investing in Generation
4.3.1.14 only)
Chapter 22
Analytical Tools
Chapter 23
3. *Kenneth Skinner. Heat Rates, Spark Spreads and the Economics of Tolling Agreements (Dec 2010).
4. *Market Evolution: Wholesale Electricity Market Design for 21st Century Power Systems (Oct 2013).
Sections 1 - 4 only.
5. Kathleen Spees, Samuel A. Newell, and Johannes P. Pfeifenberger. Capacity Markets Lessons Learned
from the First Decade. Economics of Energy & Environmental Policy, 2013, Volume 2, Number 2.
6. *Federal Energy Regulatory Commission: Operator Initiated Commitments in RTO and ISO Markets
(Dec 2014).
7. Rebecca Busby. Wind Power: The Industry Grows Up. (Tulsa, Oklahoma: PennWell Books, 2012).
Chapter 6
Chapter 1
Chapter 4
Solar PV Installations
Chapter 8
9. *Jurgen Weiss and Bruce Tsuchida. Integrating Renewable Energy into the Electricity Grid. Advanced
Energy Economy Institute (June 2015).
10. Andrea Roncoroni, Gianluca Fusai, Mark Cummins, eds. Handbook of Multi-Commodity Markets and
Products: Structuring, Trading and Risk Management. (West Sussex, UK: John Wiley & Sons, 2015).
Chapter 5
*An asterisk (*) before a reading title indicates that the reading is freely available on the GARP website.
10
gy Risk Pr
tudy Guide
11
Michael Miller. Mathematics and Statistics for Financial Risk Management, 2nd Edition. (Hoboken, NJ:
John Wiley and Sons, 2014).
Chapter 2
Probabilities
Chapter 3
Chapter 4
2. Les Clewlow and Chris Strickland. Energy Derivatives: Pricing and Risk Management.
(Lacima Publications, 2000).
Chapter 2
Chapter 3
3. *Hillard Huntington, Saud M. Al-Fattah, Zhuo Huang, Michael Gucwa, and Ali Nouri. Oil Price Drivers
and Movements: The Challenge for Future Research. (2012 Rev. 2013).
*An asterisk (*) before a reading title indicates that the reading is freely available on the GARP website.
12
13
Chapter 4
Chapter 6
2. *International Energy Agency. The Mechanics of the Derivatives Markets: What They Are and How They
Chapter 4
Chapter 11
Chapter 18
*An asterisk (*) before a reading title indicates that the reading is freely available on the GARP website.
14
15
16
Glen Swindle. Valuation and Risk Management in Energy Markets. (New York: Cambridge University
Press, 2014.)
Chapter 16
2. John C. Hull. Risk Management and Financial Institutions. (Hoboken: John Wiley & Sons, 2015).
Chapter 8
Chapter 10
Volatility
Chapter 12
Chapter 24
Liquidity Risk
3. Les Clewlow and Chris Strickland. Energy Derivatives: Pricing and Risk Management
(Lacima Publications, 2000).
Chapter 10
Value-at-Risk
4. Kevin Dowd. Measuring Market Risk, Second Edition. (West Sussex, UK: John Wiley & Sons, 2005).
Chapter 13
Stress Testing
5. Markus Burger, Bernhard Graeber, and Gero Schindlmayr. Managing Energy Risk: An Integrated View on
Power and Other Energy Markets (Hoboken, NJ: John Wiley & Sons, 2007).
Chapter 3.4
6. Jon Gregory. Counterparty Credit Risk and Credit Value Adjustment: A Continuing Challenge for Global
Financial Markets. (West Sussex, UK: John Wiley & Sons, 2012).
Chapter 3
Chapter 4
Chapter 5
Collateral
Chapter 7.
Central Counterparties
Chapter 8
Credit Exposure
Chapter 12
7. Allan Malz. Financial Risk Management: Models, History, and Institutions. (Hoboken, NJ: John Wiley &
Sons, 2011).
Chapter 6
8. *Aswath Damodaran. Country Risk Determinants, Measures and Implications 2015 Edition (July 2015)
(Pages 1 - 39 only).
*An asterisk (*) before a reading title indicates that the reading is freely available on the GARP website.
2016 Global Association of Risk Professionals. All rights reserved.
17
9.
*Luke Patey. Kenya: An African Oil Upstart in Transition. Oxford Energy (Oct 2014).
10. *Oil and Gas Production Lending. Office of the Comptroller of the Currency (March 2016).
11. *Larry Rittenberg and Frank Martens. Enterprise Risk Management Understanding and
Practices for Tomorrows Executives. (Hoboken: John Wiley & Sons, 2010).
Chapter 8
Chapter 16
*An asterisk (*) before a reading title indicates that the reading is freely available on the GARP website.
18
Trafigura
EDF Trading
Gordon E. Goodman
NRG Energy
Rice University
Alessandro Mauro
Litasco SA
Mark D. May
Phillips 66
Michael Sell
Jonathan C. Stein
Hess Corporation
Andrew Sunderman
Direct Energy
Lacima Group
Gary Taylor
British Petroleum
19
About GARP | The Global Association of Risk Professionals (GARP) is a not-for-profit global membership organization dedicated to
preparing professionals and organizations to make better informed risk decisions. Membership represents over 150,000 risk management practitioners and researchers from banks, investment management firms, government agencies, academic institutions, and
corporations from more than 195 countries and territories. GARP administers the Financial Risk Manager (FRM) and the Energy Risk
Professional (ERP) exams; certifications recognized by risk professionals worldwide. GARP also helps advance the role of risk management via comprehensive professional education and training for professionals of all levels.
*An asterisk (*) before a reading title indicates that the reading is freely available on the GARP website.
2016 Global Association of Risk Professionals. All rights reserved.