Risk management
The cruellest month
The impacts stemming from volatility in natural gas futures contract spreads – in particular the effects of seasonality on the March-April spread – have been seen in the recent dramatic losses by major hedge funds. Daven Voorhies explores some of the…
Lessons learnt
This year was one of unprecedented volatility for energy markets, yet it also marked a step-change in market maturity. Energy Risk asked some key players what they see as the defining events of 2006 and how they will affect behaviour in 2007. By Stella…
El Paso expands 2007 hedge program
El Paso Corporation, one of North America’s largest independent natural gas producers, has announced that it has restructured and expanded the hedge program that supports its natural gas production for 2007.
GFI joins ConfirmHub
ConfirmHub has announced the addition of GFI to its group of broker members, which already includes Amerex, ICAP and Tullett Prebon. New York-based GFI is a leading inter-dealer broker that specialises in over-the-counter derivatives.
CBOT launches OTC ethanol contracts
Hot on the heels of its benchmark ethanol futures contract, the Chicago Board of Trade has unveiled plans for two new over-the-counter (OTC) Ethanol Calendar Swap contracts.
APM wades into Californian water
ACES Power Marketing (APM) has extended its energy risk management services to irrigation districts and public water agencies in California.
Future imperfect
Hedging physical deals with derivatives may be active risk management, but if the physical contract is breached, it can result in unnecessary losses. Andrew Meads looks at whether the innocent party can recover these losses
Trading opinions
Energy risk professionals from all over Europe gathered in London last month at the Energy Risk Europe conference to debate the hottest topics facing the industry today. The Energy Risk team bring you some highlights
CME, CBOT to merge
The Chicago Mercantile Exchange is to merge with the Chicago Board of Trade in a move the exchanges say is “expected to transform global derivatives markets.”
DME reveals trading platform details
Energy futures exchange the Dubai Mercantile Exchange (DME), due to launch in the fourth quarter of this year, has unveiled details of its trading platform.
Amaranth losses puts risk management in the spotlight
As well as spooking players in the natural gas markets, the $6 billion losses of multi-strategy hedge fund Amaranth have put the issue of risk management, and particularly capital-at-risk, under closer scrutiny than ever
Surveying risk management
How is risk management viewed in your company? Are there risks you would like to measure but don''t? Which methodologies are most commonly used? What should the discipline tackle next? Our latest survey reveals all
Antoine Halff
Antoine Halff talks to Oliver Holtaway about the pivotal role that political risk should be playing in energy risk analysis
Do energy hedge funds need cutting down to size?
Energy hedge funds have made public over $10 billion worth of losses in recent months, once again calling into question their impact on energy markets and raising concerns of systemic risk. Catherine Lacoursiere investigates
Using options theory for commodity spreads
Market risk for a real option asset can be effectively managed using a spread option model. Raymond Cheng and Walt Tyrrell demonstrate the enhanced risk-adjusted performance of optional refinery capacity with a historical back test
Risk management for LDCs
US Gas Distribution Companies, long experienced in managing volumetric risk, now face market risk, high commodity prices and credit risk. Matthew Frye looks at strategies to model these risks in aggregate
Hedge fund technologies
Energy markets continue to attract hedge funds - but, as recent high profile losses have shown, operating in them is challenging. Having the right trading and risk management IT is essential. Stewart Eisenhart reports
Risking it in Russia
When attempting to assess energy risk in Russia today, traditional methods of risk analysis are no longer sufficient; they mustbe accompanied by detailed political risk analysis, writes Robert Amsterdam
Accurate options pricing for all
SuperDerivatives has entered the energy world with big aims - to bring transparency and increased liquidity to options markets. Oliver Holtaway looks at the company model, and asks how big a splash it's likely to make
5% salary growth continues for energy risk execs
Salaries and total compensation for risk professionals at energy companies continued to grow at an average of 5% in 2005 over the previous year, according to the Professional Compensation Survey.