Feature
Prepay agreements - The ten-year pitch
Standard & Poor's recently passed the $1 billion mark in terms of natural gas prepayment deals it has rated since 2003. Joe Marsh looks at how these work and why municipal utilities might want to consider them
Coal turns a corner
Asian coal-trading is still proving a tough nut to crack. But the underlying market is developing, and a growing need for better risk management suggests it is only a matter of time before a paper market takes off
Counting on coal
NRG Energy's move to buy Texas Genco seems a wise one for a company with strong dark-spread exposure, but it has its risks, despite the target company being backed by an active hedging programme. Joe Marsh reports
Papering over the cracks
High energy prices are forcing pulp-and-paper makers to take action against falling profits, yet most companies are still shying away from energy price hedging. But that situation may be slowly changing. Joe Marsh reports
Top tips and dirty tricks
You don't have to be a genius to work as a quant - though it helps - but you do have to know a few tricks of the trade. So where should aspiring energy quants start? Neil Palmer offers some suggestions
Off to a flying start
Aviation is one of the fastest growing sectors in terms of carbon emissions, but a move by the European Commission to include airlines in the EU's Emissions Trading Scheme has alarmed some in the industry
Credit in the limelight
Today's business climate is pushing credit risk higher up the risk management agenda, as our Energy Credit Risk conference in New York showed. Stella Farrington reviews the event
Playing power games
Thanks to increasing consolidation, it seems the country-specific energy exchange will soon be a thing of the past in Europe. But is this level of competition premature?
The right of refusal
Traders have learned that giving away free financial options can be costly. However, free options can take many forms. Brett Humphreys and Tamara Weinert discuss the value of a risk management option that can easily be given away
How long will the shopping spree last?
China appears set on a programme of foreign energy asset acquisition. Maria Kielmas looks into the implications for the energy industry
Carbon complexities
The EU ETS adds price complexity to European energy markets and the trend towards pan-European markets means far more complex models will be needed to model carbon risk, writes Bjorn Brochmann
UKPX to launch carbon spot contract on Climex
London-based energy exchange UKPX will co-operate with Dutch emissions exchange New Values to launch a UKPX spot contract for carbon emissions certificates.
Decisions, decisions
Where next for the price of a barrel of oil? It’s an important question for producers and consumers, for whom managing oil price risk has never been more crucial. Oliver Holtaway finds that the answer to that question is not necessarily ‘up’.
Marginal improvements
Despite reduced production in the wake of hurricane Katrina, no new US refineries are in the pipeline. Instead, refiners are operating at full tilt as they come under pressure to expand capacity. By Catherine Lacoursiere
Don’t blame Opec
As well as urging Opec to open up international access to its reserves, politicians in large oil-consuming nations should be encouraging investment in new refinery capacity, writes David Hufton
The cream of the crop
The employment market for oil and energy traders has been from one extreme to the other in a short space of time – especially in oil. Andy Webb looks at where the recruitment market is headed next
The cream of the crop
The employment market for oil and energy traders has been from one extreme to the other in a short space of time – especially in oil. Andy Webb looks at where the recruitment market is headed next
The risks of E&P
After two years of soaring oil prices, oil majors are still building low oil-price forecasts into future investment plans. Is this sound risk management, or are they being too risk averse? By Stella Farrington
Buyer and seller beware
As a busy M&A period looms in the US utility sector, a wave of power plant sales seems likely. But those looking to hedge the fuel supply to these assets will find it tricky, given the current volatile gas prices. By Joe Marsh
Shelter from the storm
Energy companies are showing increased interest in hurricane derivatives, a specialist product that can provide an additional layer of protection on top of insurance. Joe Marsh reports
Doctor’s orders
Should you try to hedge a physical asset by simply selling its expected output? Neil Palmer shows how, in some scenarios, either under- or over-hedging could make more sense
A glimpse of freedom
Merger and acquisition activity in the US utility sector, previously kept in check by the Public Utility Holding Company Act, could be set to swell with the repeal of this act in February, some analysts believe. By Oliver Holtaway
The hedging effect
The effect of hedging on a project’s net present value can be difficult to determine. Brett Humphreys shows how different types of hedging affect the distribution and the expected return of a project