There is definitely a lot of interest brewing within the meteorology community on breaking into the energy meteorology space.  I probably receive a couple emails a week about this very topic.  Even when I was at the AMS, the energy sessions were packed with students and young professionals looking for ways to break in.

Here’s the deal…99% of energy trade floor meteorology positions on the trade floor will not be entry level jobs.  You will need to show experience in other operational meteorology roles if you want to break in.   And many of you should now be aware that when these positions do open up, there is a huge stack of resumes that pile up.

So, I’d like to introduce to you another option to get on the energy trade floor …but it requires a different set of skills set and possibly even another major.   Have any of you thought about entering the energy trade floor from the trading side?   There’s a lot more opportunity from the trading side if you have the skills.

Becoming a real time trader is generally the first step on the “trader ladder”.  The normal career path goes from Real Time Trader to Day Ahead Trader to Forward Trader.  And of course you can grow your career within each of these trading areas.   But by becoming a real time trader…it automatically puts you on the trade floor with meteorologists.

Now with that being said, it’s not that simple for entry level meteorology graduates to just break into “real time trading”.   So, I’d recommend a couple of things:

#1: Get an additional degree in an economics, finance, or accounting.   If you’re still a meteorology student at a University, and you’re able to afford another major, I would consider adding one of these degrees to help break into the trading side.

Not only that, but if meteorology were not to work out for some reason, you have an additional degree to give you access to more opportunities.  If I were to do anything differently, I would have double majored in Meteorology and Economics or Finance.  However, I was able to learn a majority of applied macro-economics on the trade floor.

(If you can’t…don’t worry it’s not the end of the world…but it may help to take some additional classes)

 #2:  Follow the ladder to get to Real Time Trading.  There is actually a ladder to follow to get to “Real Time Trading”.   An entry level college graduate can get hired as an “Energy Settlements Analyst whether it’s for power or gas.

This may probably expire soon (and if it does just Google it or put these keywords into Indeed or Simply hired), but here’s an example of an Energy settlements analyst position and it’s role/definition too.

From the Settlements analyst position, the next step on the ladder would be to move into a Power or Gas scheduler position.  Sometimes, if you’re lucky…you could break into a associate level scheduler position.   This puts you much closer to the trade floor.

Here’s an example of a Natural Gas scheduling position:

Natural Gas/Power schedulers are generally in close proximity to the trade floor since they interact a lot more with traders in case of any questions about delivery, etc.   But a lot of Power or Gas Schedulers move into trading and start their trading careers as Real time traders on the energy trade floor.

So, if you’re interested in getting on an energy trade floor, there are A LOT more open positions in settlements, scheduling or even energy trading.  Upper management would prefer to hire potential “revenue generators” (ie traders) for the company rather than spend overhead on too many “analysts” or meteorologists.

Plus, if you enjoy the fast paced and often times very challenging trading environment, this could be a great future career.  Energy Traders (if you are good) can make boatloads of money.  Not as much in real time, but if you become a Natural Gas Day Ahead or Forward Trader, for example, you can easily make 6 or even 7 figure incomes.  The sky is the limit if you’re a large revenue generator!

(Maybe not as much this year with the warmest winter we’re seeing in 62 years…but it is possible if one had the right positions on…but that’s for another post

Also, in a previous post about the Top 5 cities that hire energy meteorologists, I chose Houston, TX as my #1 choice.  Houston is definitely a place to consider if you want to start an energy trading career.  There’s a lot more opportunity in Houston than most other places around the United States.

Now if you want to transition from a real time trader to a meteorologist…it may become a lot easier.  First, you’re on the trade floor already…the traders and the fundamental staff know you.  Second, you could even train with the meteorologist on staff to understand all the on-the-job intricacies of being a meteorologist on the floor.  Third, you can always work with management to create an opportunity for you if you’re good.

Or you could consider staying in trading.  If you were to stay in real time trading and grow your career (to day ahead/forward), weather will always be an important fundamental.   And by you knowing the weather part of the equation, it gives you a little edge in helping you become a better trader.

Bottom line, this is just another option to help you get on the energy trade floor other than waiting for a meteorology position to open up.  The key is to first break into an energy company…then work your magic to get where you want to be.  Unfortunately, there is no magic wand or special formula to break in…but the trading side definitely presents more opportunities.  (Photo credit: mergers and inquisitions)

P.S.  Just a friendly reminder, if you haven’t signed up for the free resume contest…there’s only 6 days left!  Here’s the link: www.freshaj.com/resume_contest