Energy firms increasingly using stress tests to cope with regulatory change
Companies have a tendency not to consider worst-case scenarios when times are relatively placid. In 2012, energy markets were significantly quieter than during the preceding years – volatility stood at relatively low levels in both crude oil and natural gas, financial markets were comparatively calm and there were few major geopolitical conflagrations. Nonetheless, energy market participants are determined not to forget the lessons of the past five years, which saw a cascade of unexpected events
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