Based in Houston, TX, Timothy Kramer is the CEO of Carbon Neutral Investment Company. He designed the U.S. Carbon Neutral Power Index, the first index to track the broad U.S. electricity market and the carbon allowances associated with electricity generation. In addition to his accomplishments in the sustainable energy sector, Timothy Kramer is also highly experienced in energy trading.

Energy futures are contracts binding two parties to exchange energy commodities at pre-agreed prices at future dates. The Commodity Futures Trading Commission regulations and the U.S. Commodity Exchange Act govern these contracts. Through energy futures, investors gain exposure to the values of energy commodities. When investors discover a commodity's value, they participate in its potential price movements without physically possessing or owning it.

Assuming an investor predicts that crude oil prices will rise, they can profit by purchasing a crude oil futures contract. To start trading, the investor opens a trading account with a broker who is part of the exchange where parties trade crude oil futures and deposit the necessary margin. Crude oil prices fluctuate over the following weeks, influenced by various economic, political, and environmental factors. At the end of each trading day, the futures contract gets a settlement price based on the current market price. Investors can sell the futures contract for a profit if the crude oil price increases above the contract's price. However, investors will experience a loss if the crude oil price falls below the contract's price.