Steven Errera energy futures papers

Alumnus Steven Errera was a notable figure in energy trading beginning in the late 1970s and early 1980s. He graduated from Queens College in May of 1969 with a BA in Economics; one month later he landed a position as a "Board Boy" at the New York Mercantile Exchange (NYMEX), while working towards an MBA at Rutgers University. Errera worked his way up through the exchange in a multitude of roles, moving from Board Boy to Clerk, Auditor, Clearing House Manager, and Director of Marketing, before becoming become Vice President of Market Development. He went on to spend 38 years affiliated with NYMEX, a major commodities futures exchange, establishing their marketing department and pioneering their involvement in the energy futures market.

During Errera’s early years at NYMEX, the organization traded traditional futures contracts in metal and agricultural commodities. A scandal provided the urgency that led NYMEX into energy futures trading. In 1976, NYMEX declared default on its Maine potato contract, and stopped trading this major commodity. The Exchange’s outlook was grim. Looking to rebound, Errera saw the opportunity to establish a market for heating oil futures contracts based in New York Harbor. Thus, in 1978, NYMEX launched the first of the many energy commodities futures it would soon trade, including heating oil, crude oil, gasoline, and natural gas. Errera marketed NYMEX’s energy futures market to major energy producers and consumers, and developed close relationships with the business press. Under Errera, NYMEX frequently produced guides and newsletters for the energy sector of the financial industry.

When Errera left NYMEX in 1981, it was to establish Energy Futures Inc. and become an Exchange Member with rights to trade on the floor.

He joined forces with Joel Faber of Fabers’ Futures Inc., to set up their own brokerage and consulting firm. Errera continued to write for trade publications, speak at industry conferences, and teach academic seminars, especially at the New School in New York City, New York University, and Queens College.

As a Member Errera served on the facilities, arbitration, new products, clearing house, and marketing committees, and had the distinction of being the only member to sit on all of the energy advisory committees (petroleum products, crude, propane, and natural gas) simultaneously.

Errera has given hundreds of lectures and seminars on energy futures in both academia and corporate settings, and co-authored multiple books on the subject. Also in the 1980s Errera was interviewed on all the national television networks concerning oil prices.

Over the years, Errera has contributed articles to several publication including American Banker, Oil & Gas Journal, Futures Magazines, Yankee Oilman, Fuel Oil News, and the Journal of Commerce. He has writeen two books on energy futures trading, the latest of which, Fundamentals of Trading Energy Futures and Options, is in its third edition, published by Penwell Press in 2018.

Errera's company, Energy Futures Inc., provided brokerage and consulting services to the major oil companies as well as to large consumers of energy products. Clients included Conoco, SOHO, Tenneco, ARCO, Occidental Petroleum, Gulf Oil, CITGO, Louisiana Land & Oil, American Refining, Global Petroleum, Petron, and Sun Oil Co.