How to become an energy trader: 7 steps to break into the industry

Energy traders buy and sell energy commodities such as oil, natural gas, and electricity to generate returns while helping keep supply and demand in balance. They rely on market analysis, data, and forecasting to decide when to take positions, identify opportunities, and manage risk for their companies. The role supports efficient markets, improves the flow of energy resources, and, in power markets, contributes to grid stability.

Power your progress at Shell

A career in trading at Shell

is an opportunity to grow in a supportive, values-led culture. We are committed to developing talent through structured learning and mentorship.

Our programs help build a comprehensive skill set, from deep market analysis to sophisticated risk management, ensuring our traders are equipped to navigate the market. Key development areas include market analysis, commercial strategy, risk management, technical proficiency, and supply chain operations.

Key responsibilities:

• Market analysis and forecasting
  • Analyze trends in fundamentals, weather, macro conditions, and policy to form price views
  • Build scenarios and use models to anticipate near-term and forward moves
• Buying and selling commodities
  • Execute physical and financial trades across crude, gas, and power
  • Trade on exchanges and over the counter, often using futures and options
• Risk management
  • Hedge exposures to manage price volatility and protect profit and loss
  • Operate within desk limits and follow reporting and control frameworks
• Balancing supply and demand in power
  • In real-time markets, adjust transactions and schedules with ISOs and RTOs
  • Align positions with changes in generation, load, and transmission constraints
• Logistics and operations
  • Manage transportation, storage, and nominations to reflect physical realities
  • Coordinate with schedulers, operators, credit, and legal to deliver deals safely

Aspiring energy traders typically start with a relevant bachelor's degree and gain hands-on experience through internships or entry-level positions. Continual learning remains crucial, as staying on top of market research and practicing daily analysis builds the commercial awareness that trading desks value. Networking matters equally, as getting involved in the industry opens doors to mentorship opportunities and market insights.

The following steps will get you closer to becoming an energy trader.

Step 1: Understand how US energy markets work

Build working knowledge of market structure and pricing. US energy markets operate through independent system operators (ISOs) and regional transmission operators (RTOs) that coordinate electricity supply and demand.

Key participants

include ERCOT managing Texas electricity markets, PJM covering mid-Atlantic states, and CAISO handling California operations. Study how supply and demand fundamentals, transmission constraints, weather patterns, and storage volumes drive price movements.

Track how geopolitics, regulation, and environmental policies influence commodity trading. Companies like Shell Trading US Company

operate as major physical traders across these market structures.

Step 2: Get the right educational background

Strong analytical foundations matter more than specific degree programs. Most energy trader roles require quantitative skills through academic background and work experience.

Common degree paths include finance, economics, engineering, mathematics, or business. Focus on statistical analysis, financial markets knowledge, data analysis tools, and case study skills. For power trading, coursework in electrical systems or energy policy provides a helpful context.

For certain roles, substantial relevant experience can substitute for formal degree requirements. Recent graduates can explore opportunities through the Shell Graduate Program.

Step 3: Learn the tools and skills energy traders use

Energy traders must combine analytical capabilities with communication and teamwork skills.

• Technical skills: Excel modeling, Python or R programming, market data platforms, energy trading and risk management systems, and derivative instruments knowledge.
• Communication skills: Present trading strategies concisely, coordinate with operations teams, write clear trade analysis, and work effectively under pressure.
• Commercial mindset: Connect market information to trading actions, think about risk and reward quantitatively, and understand how physical operations affect positions.

Step 4: Start in supporting roles to build market experience

Most energy traders begin by working around trading desks before managing positions directly. Target entry-level positions in scheduling, risk analysis, credit and settlements, or operations support.

Learn core desk functions including profit and loss calculations, trade rationale under market conditions, risk control structures, and daily trading rhythms. Supporting roles let you observe how experienced traders think about opportunities and manage risk.

Step 5: Consider structured training or trader development programs

Some companies offer formal development programs combining classroom learning with desk rotations. Components include market fundamentals training, risk management frameworks, regulatory compliance, and commodity desk rotations.

Shell runs a competitive trader development programme

with mentorship from experienced colleagues. These programs typically require 3-5 years of commercial experience, so new graduates should first gain their trading experience through graduate programs or analyst roles.

Step 6: Build your commercial mindset and stay market-aware

Develop market awareness by connecting daily information flows to trading opportunities. Review overnight price movements, track weather forecasts, monitor grid conditions, and follow policy developments affecting renewable energy.

Build analytical frameworks linking weather to demand patterns, track seasonal trends, and study how major events affected prices. Learn from experienced professionals through shadowing, trading recaps, industry conferences, and professional organizations.

Step 7: Prepare for interviews and apply strategically

Approach energy trading interviews as commercial discussions. Employers evaluate analytical capabilities and market judgment through market structure questions, risk scenarios, derivatives concepts, mental math, and behavioral examples.

Prepare by practicing explanations of recent market movements and specific examples of analytical work. For competitive programs, assessments evaluate "Trader Capacity," "Trader Achievement," and "Trader Relationships." Some companies use the STARR assessment method for behavioral interviews.

Target applications through industry networking, roles matching your experience level, and companies across utilities, independent producers, and trading firms. For experienced professionals, review the application process

at target companies.

Energy trading at Shell: Skills, development, and impact

Shell Trading & Supply

is one of the world's leading energy trading organizations, managing energy flows across global markets for natural gas, liquefied natural gas (LNG), crude oil, refined products, biofuels, power and environmental products. In our trading operations, you work with experienced colleagues who understand market dynamics and operational realities.

For those interested in becoming an energy trader, the role is a dynamic blend of analysis, strategy, and high-stakes decision-making. At Shell, our Trading & Supply business is one of the world's largest, connecting us to the global energy markets.

Shell traders manage a vast and varied portfolio of energy products, from crude oil to lower-carbon energy solutions, to ensure a reliable supply for our customers worldwide.

Your decisions play a pivotal role in Shell's profitability and market positioning. Join a values-led culture built on honesty, integrity, and respect, with access to extensive mentorship programs and development opportunities that help you grow while contributing to energy solutions for today and tomorrow.

Why Shell Trading & Supply

• Grow in a values-led culture. Our foundation is honesty, integrity, and respect. We maintain an inclusive, supportive environment where speaking up and leading by example define our compliance culture and how we conduct trading operations.
• Collaborate with industry professionals. You'll work alongside skilled professionals who understand how to navigate competitive markets. Build connections across our global business while receiving support from colleagues and leaders as you advance your capabilities.
• Be part of leading energy trading organization. Join teams that hold influential positions within one of the world's foremost energy marketing and trading operations. Your work contributes directly to our success and creates a meaningful impact daily.
• Shape energy solutions for today and tomorrow. Participate in developing solutions that address current energy needs while helping to build the energy systems of the future. Working with a diverse portfolio of energy products globally gives you the opportunity to power progress.

Take the first step toward energy trading

Becoming an energy trader requires building market knowledge, developing analytical skills, gaining hands-on experience, and demonstrating commercial judgment. The seven steps outlined here provide a structured approach to entering US energy markets.

For additional guidance, visit our candidate resource center. If you have questions about trading careers, our careers team can provide support.

Explore energy trading jobs where your decisions shape real outcomes. See how you could grow with Shell Trading & Supply team.

 View roles at Shell US.