Risk management
Editor's letter
It's that time of year again - the Energy Risk awards! As well as honouring the deserving winners, our awards write-ups offer a selection of case studies which chart the latest developments, innovative thinking and strategies in this dynamic sector.
Integrating energy data
Knowledge is power, and having the latest information on the marketplace is of paramount importance. Eric Fishhaut looks at why centralising information can have a big impact on tactical management and developing strategies
Convergence in Atlantic Basin coal
Atlantic Basin OTC coal trading is the envy of US and Asian markets, but until recently it was missing the key component of OTC contracts. But trading in globalCOAL's Atlantic products has taken off dramatically since the end of 2005, writes Stephen Doyle
Joined-up risk assessment
The nature of risk is changing. Energy companies, well-skilled in managing market risk and operational risks, may now need to adopt a new stance towards risk management, write Rohit Bhapkar, Roland Rechtsteiner and John Stroughair
Valid Assumptions Required: confidence level and holding period
In the second article of his series, Brett Humphreys examines the assumptions associated with selecting a confidence level and a holding period for a VaR calculation
GlobalCoal launches ARA FOB Barge Index, swap product
GlobalCoal has introduced the ARA FOB Barge Index based on their ARA barge contract.
Coping with setbacks
Most risk managers and employees in energy companies are familiar with the concepts of market risk and credit risk, but operational risk is receiving more attention in corporate boardrooms these days, writes Sandy Fielden
Valid Assumptions Required: aggregation
In the first article of this series, in which Brett Humphreys questions some of the assumptions and decisions that go into the calculation of value-at-risk, he focuses on portfolio aggregation.
The chain gang
Supply chain management is becoming more important within energy companies, making liaising between the supply chain manager and the risk manager essential in order to avoid compromising operational risk, writes Raees Lakhani
Full steam ahead
The rising cost of shipping fuel is causing more and more shipowners and commodity merchants to consider risk management strategies, and some sophisticated marine fuel trades are taking place as a result, writes Barry Parker
Leading the energy software revolution
The ETRM software industry is enjoying a long-awaited boom, meaning exciting developments are in store for energy trading and risk management, writes Stella Farrington
The rise of mechanistic hedging
Utility hedging gains wider acceptance, but companies still need to work harder to eliminate pure price-view hedging, writes Leigh Parkinson of RiskAdvisory
March 2006 - Riding the rollercoaster
US natural gas prices have proven to be susceptible to weather-related price swings. Andy Weissman looks at what a risk manager should consider when designing a price risk management program
CME eyes energy market
The Chicago Mercantile Exchange plans to launch energy futures contracts once its non-competitive agreement with the New York Mercantile Exchange expires this summer.
SGX and CBOT to partner on commodities
The Singapore Exchange (SGX) and Chicago Board of Trade (CBOT) will launch a joint commodities derivative exchange early this year, marking a step towards fulfilling SGX's strategy to be an Asian gateway. Joe Marsh reports
Credit - Energising credit
Traditional credit instruments can be used to mitigate credit risk in the energy sector, despite the unique risk management challenges, says Chris Coovrey