Learning the Trade of Delivering Reliable Energy in a Transitioning Market
A keen interest in energy markets and trading prompted Daniel to join Shell Energy Australia as a trading and supply graduate. In a short period, he gained significant exposure to the markets that underpin delivery of energy for customers, while contributing to Shell’s energy transition strategy.
Learning on-the-job
Following a degree in finance and economics, Daniel joined Shell Energy Australia as a trading and supply graduate when the global energy supply chains were recovering from the strain caused by the COVID-19 pandemic. He hit the ground running in the first few months, immediately working on topical and interesting areas which included the price volatility in gas markets following Russia’s invasion of Ukraine. “Coming into the role at that time was a crucial learning experience that helped me understand how trading can help energy markets operate more efficiently when faced with external pressures,” he says.
Opportunity to facilitate a milestone energy productivity project
Daniel then put his finance and economics background to use, joining the forecasting and analytics team that played a role in Shell making its first direct equity investment in the development of a utility-scale Battery Energy Storage System (BESS).
The battery, aiming to back up and shift variable renewable energy to when it is most needed, gave Daniel the opportunity to be involved with Shell’s efforts in developing a changing energy trading portfolio and move closer to achieving its net-zero objectives. “I started with revenue modelling for the BESS project. It was exciting to undertake in-depth analysis and engage in market risk discussions that underpin an investment decision that would help contribute to the energy transition.”
After spending a year in a role learning to evaluate future new energy investments and delivering power models with a five to 20-year horizon, Daniel transitioned to the power and gas spot trading desk. In this role, he is responsible for managing real-time exposures to highly volatile power and gas spot markets. He has also been leading the development of optimisation programs and trading tools for the first BESS asset the team will manage. To him, it’s an opportunity to deepen his understanding of energy markets and develop as a trader, while continuing to work across activities that further Shell’s energy transition objectives.
Thriving in a culture that fosters collaboration
The nature of his new role is a 180-degree shift from where he started. Picking up new skills on the job, he says, has been easier because of the culture of collaboration Shell fosters. “I collaborate with multiple stakeholders with diverse skills and experiences who are at different stages of their careers. Some of them helped to design the Australian energy market and have been a part of it since its inception. Just observing these people working together and making decisions, despite having differing opinions at times, to achieve a common goal in a high-stakes environment has been an incredible learning experience,” he says.
“Every idea is discussed on its merit, no matter where it comes from. Even the most experienced people in a team are willing to consider a different perspective and I think that creates an incredible development environment for graduates at Shell,” he says.
For Daniel, the learning curve has been steep and is what he most appreciates about his journey at Shell. “Because of how fast paced this role is, I have learned to make split-second decisions with confidence, that rely on an in-depth understanding of highly complex markets. This has been incredibly fulfilling.”
Discovering the merits of balance to enhance growth
Daniel loves that care for our people is a core principle at Shell. “Ensuring that you are well rested so you can focus and make the right calls at work is an effective approach,” he says. “My manager is always watching closely to make sure I am not stretched too thin. If he thinks I am tired, he advises me to slow down (even if I don’t want to) or take the additional flexible leave available for everyone at Shell.” The roster system for the trading desk enables Daniel to travel and spend time in nature and return rejuvenated.
Building viable new energy businesses
After working on the big battery deal, Daniel is excited about the opportunities that the energy transition has for Shell and how he can play a role. “A successful transition to a renewable energy market requires affordable energy for consumers. Part of my job is to learn to adapt and help build a viable trading business around this transition,” he explains.
“I’m fortunate to be learning and growing in a company working to transition the energy sector.”
