Looking to get into Commodities
Hey everyone,
I’m a mechanical engineering graduate (24YO) from the University of Houston. I Graduated with a 3.4 GPA and I am currently a Drilling Operations Supervisor for ExxonMobil. I work 2 weeks on and 2 weeks off. My 2 weeks on I live out on site on a drilling rig in west Texas seeing first hand how the Oil industry kicks off with upstream operations. My 2 weeks off grant me a lot of headspace and time which I am using to get an MBA (current GPA: 4.0) from Texas A&M (expected graduation December 2026).
My goal is to get into the world of commodities trading as soon as possible but a more realistic goal is to make the pivot by summer 2027. Crude oil is my main interests but I wouldn’t turn down nat gas, power, or any other energy derivatives. My plan for the pivot it as follows:
Read and educate myself on the logistics and fundamentals of the markets. I’ve currently read:
-The World for Sale
-The King of Oil - Daniel Amman
-Commodity Conversations - Jonathan Kingsman
-Diary of Professional Commodity Trader - Peter L Brandt
I am currently reading Maritime Economics 3rd Edition -Martin Stopford
I found the pdf online for that one since it’s an 800 pg textbook. It breaks down the fundamentals of freight/logistics industry and how it plays a role in the physical trading of commodities very well.
Plan on reading (please let me know of any I should add to the list):
The Prize - Yergin
Oil: money, wealth and power - Bower
The Smartest Guys in the room - Bethany McLean
Hedgehogs - Dreyfus
I’m a huge Texas Hold’em fanatic therefore I read about 1 book a month on poker and play at local poker rooms. I’ve read risk management and emotional control can transfer very well from poker over to trading.
Plan moving forwards:
Network like my life depends on it. I’ve heard from multiple sources that it’s a difficult industry to break into until you have a person on the inside. Since my two weeks off I am in Houston, I spend a lot of time at the Exxon Campus reaching out to people on Exxon’s Trading team looking to have lunch and share my interest in the industry. I also have friends that work in trading @ Repsol (The Woodlands Offices) & McGuire Group (Downtown Houston) which I plan to eat with regularly and ideally have them point me in the direction of their peers which I could also talk to and pick their brain. My ultimate goal in all this is to get into Shell’s Trading Development Program (TDP). It’s my understanding that amongst the Oil Majors Shell’s trading operation is second to none. I have friends that work at Shell (not the trading side) which I plan on using to get in contact with people in their TDP and gain some insight.
I also have a [potential] major in for Shell. My family is amazing friends with the president of crude oil trading for the Americas @ Shell. Although I am very conflicted to attempt to ask him to get me into the TDP. I have a tremendous amount of respect for him and what he has achieved in the industry and would hate to put him in a position where his integrity might be questioned. I also want no body to be able to to claim that I got into the TDP because of him.
What do you guys think about my plan of action? Any flaws in my thinking or any recommendations?
Side Note: I am currently already well versed in the equity markets. I have managed my E*trade account since the age of 18 and have had great returns. I understand enough to know that commodities/futures is a whole different animal, I just wanted it to be known that I’m not attempting to jump into futures with no prior knowledge of financial markets.