Energy Company Management Simulator
You are an analyst at an energy company. Start with $10,000, choose production, pricing, and weather hedging strategy, then see whether your company survives.
How the Simulator Works
Market Information
- Average HDD in this simplified market is around 120.
- Higher sales price reduces demand.
- Colder winters mean higher HDD, which increases energy demand.
- Unsold production has no value at year-end.
- Lower strike HDD contracts cost more but pay more often.
- Higher strike HDD contracts are cheaper but only pay in very cold years.
- The goal is to grow your company from $10,000 to $25,000.
Profit Logic
Profit = Revenue − Operating Cost − Weather Cost - Hedge Premium + Hedge Payoff
Suggested First Strategy
- Production: 150
- Sales Price: 50
- Expected HDD: 120
- Strike HDD: 120
- Tick Value: 5
- Contracts: 3
Hint: A conservative first strategy is to produce around 150 units, set price around 50, and avoid spending too much cash on hedging.
Company Status
Year: 1
Current Cash: $10000.00
Goal: Reach $25,000. Bankruptcy occurs if cash falls to $0 or below.
Business Plan
Hedge Design
Estimated Hedge Premium: $
Cash After Buying Hedge: $10000.00
Year-End Report
Make your decisions and simulate the year.
Company History
| Year | HDD | Demand | Units Sold | Profit | Ending Cash |
|---|