Dr Cliff Parsons is President of WTM Energy Software, LLC. He has worked in the energy industry since 2000 developing valuation, trading and risk models for mainly natural gas trading, but also for power, oil/products, and coal trading. His main focus has been on developing accurate and practical trading models in natural gas for both storage and swing options. This development started in 2001 and proceeded for ten additional years in total with the toughest part being the development of the model’s computer program.
He has spent the last several years developing theory for the efficient implementation of optimal storage trading and its hedging. The result is both white and published papers on the subject for helping others to better understand the intuition behind such trading. The goal of this research is to help change trading strategies in this industry from current approaches so as to make natural gas storage trading a growth business again in North America, something that is possible but has not been since 2011.
In 2001 he earned his PhD in finance from the Tepper School of Business, Carnegie Mellon University, he earned his MBA with distinction from that same institution in 1994, and he earned his BA in economics from the University of California, Irvine, in 1984.
In this paper the author's develop theoretical concepts of optimal injecting and withdrawing for a capacitated commodity storage and give case studies in natural gas.