In energy trading terms an asset is something an organization owns that can physically provide, transform or move an energy commodity, such as a gas field, a power station, or a refinery

Detail

In trading terms many assets that transform or help to move a commodity are in effect an option on a spread:

• A gas fired power station acts as an option on a spark spread; if we choose to run it we provide the gas (and the carbon) and in return we get power
• A refinery acts as an option on a crack spread
• A ship acts as an option on a location spread
• A storage facility acts as an option on a time spread
• a pipeline acts as an option on a location spread

Long term supply contracts are also sometimes referred to as an asset