Feature
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
Unearthing energy
As high natural gas prices continue to be the largest and ever-increasing cost for oil sands operations, the best hedge is a gasification strategy, says Catherine Lacoursiere
Matrix-based IAS 39hedge accounting
This paper outlines a method that facilitates IAS 39 hedge accounting. Thekey element is the representation of hedging instruments by an allocationmatrix. Giel Halberstadt’s method can easily be applied in any commodity orfinancial trading company
Special Report - Energy prices - Opening up the grid
Germany is set to move this year to an entry/exit system for access to its gas grids. But some in the market fear that unresolved issues could cause a bumpy start
March 2006 - EFET Survey - Could do better
Gas transmission access systems across Europe must be improved significantly before efficient trading can take place, say gas traders in a recent poll conducted by the European Federation of Energy Traders
March 2006 - Interconnector - UK left in the cold
As UK gas prices soared at the start of the year, market watchers struggled to explain why cheaper European gas didn't flood into the UK. But as the UK becomes a net importer of gas, these sorts of market inefficiencies will become more prominent, writes…
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.
March 2006 - LNG moves offshore
Offshore LNG terminals not only circumvent environmental objections, they give suppliers global arbitrage opportunities. But are they economical, asks Catherine Lacoursiere
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
LNG moves offshore
Offshore LNG terminals not only circumvent environmental objections, they give suppliers global arbitrage opportunities. But are they economical, asks Catherine Lacoursiere
March 2006 - Relations with Russia revisited
As Europe becomes more dependent on Russia for oil and gas supplies, it endeavours to maintain good relations with Moscow, while at the same time looking for alternative ways of securing fuel
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
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
Commodities Count 2006
The recent swell in energy market participants means the battle for dominance has never been fiercer, but the increased competition means ever-more sophisticated product offerings, finds Stella Farrington
Europe goes nuclear
Proposals to build new nuclear power plants in the Baltic states and Poland are gathering pace, finds Maria Kielmas
After the storm
Last year's devastating US hurricane season hammered home the link between energy and weather. But some believe it may also hold a key to predicting this year's weather, says Todd Crawford of Weather Services International
Questioning dollar cost averaging
When implementing a hedging strategy, the popular dollar cost averaging approach may sometimes be less prudent than the lump-sum method for managing energy risk, writes Tim Simard
Correlation - The energy price factor
Navneet Arora provides empirical evidence that significant correlations exist between the movements of commodity prices and the credit quality of firms in the energy sector
Introduction - New frontiers in credit
Rising energy prices have thrown the issue of credit into stark relief, and credit lines are being used up increasingly quickly. How should credit managers react?