Feature
Coal facing changes
Coal derivatives trading is gaining popularity among coal consumers, producers and financial institutions in Europe, according to a recent survey of market players. Cyriel de Jong and Kasper Walet discuss the study’s results
A disciplined approach
E&P companies tend not to strategically hedge in a rising market. But there are good reasons for them to do so, and some are sticking to their hedging strategies, despite suffering losses on their derivatives contracts. By Joe Marsh
The scandal in Sudan
A fragile peace may at last have come to Sudan after 21years of civil war, but a bitter and unresolved dispute over oil exploration acreage in the south of the country couldendanger that peace. Report by Maria Kielmas
Pieces of a puzzle
To get enterprise-wide risk management to work, a firm needs to piece together the right models, processes and software – and the right attitude. US utility Allegheny Energy has done just that, finds Oliver Holtaway
Hoodwinked!
Have you got a good grip on your view of volatility and correlation? Neil Palmer shows that, thanks to ever -present measurement errors, even the steadiest markets can throw up big surprises
● Accounting standards ● Nordic energy
This month’s Energy Risk debate covers the topical issues of accounting standards, followed by an expert question and answer panel on the influential Nordic energy region
Getting a head-start
North American Energy Credit and Clearing may have gained an advantage by being the first to clear over-the-counter physical electricity contracts. But it still has to prove that it is reliable and efficient. Joe Marsh reports
A revival of the coal business
The boom in world coal prices has not been sustained in 2005.Two industry experts, Alexandre Kervinio and Christopher Connelly, of Société Générale, look at the reasons why
The cost of power
The market in European Union emissions allowances is taking off, largely thanks to Nord Pool
GFI buys Starsupply
Interdealer broker GFI Group has agreed to acquire Starsupply Petroleum, a leading broker of oil products and related derivative and option contracts.
Great expectations?
Risk and expectation are two sides of the same coin. But could you quantify your own risk appetite? explores some ways to put a price tag on those hazards you can’t avoid Neil Palmer
Baiting the hook
End-users such as utilities and industrial companies are not showing the same keenness as hedge funds for trading weather derivatives, despite the efforts of banks, dealers and brokers to lure them in. By Joe Marsh
Growing up fast
Weather trading is seeing strong volume growth in the US, largely due to the influx of hedge funds into the market. Why such a big increase in interest, and what sort of strategies are the funds adopting? By Joe Marsh
Pricing the weather
Pricing weather derivatives is different from valuing other derivatives contracts – actuarial methods play a greater role. Steve Jewson looks at the varied approaches available
Strength in numbers
Weather derivatives seem to have a bright future: the market is enjoying record liquidity levels as new players, trading ever more diverse products, flood into the market. Oliver Holtaway reports
Editor
"Although end-users seem slow to enter the weather space, hedge funds already see it as a hotspot"
Blowing hot and cold
Across Europe, government enthusiasm and support for wind energy will dictate the ability for wind project sponsors to refinance project loans via the bond market. Jan Willem Plantagie of Standard & Poor’s explains
Weatherproofing the VAR
The weather derivatives market shares some similarities with other markets, but applying existing models can sometimes have disastrous results. Brett Humphreys and Eric Raleigh discuss how weather derivatives differ from financial derivatives and how we…
Growing up fast
Weather trading is seeing strong volume growth in the US, largely due to the influx of hedge funds into the market. Why such a big increase in interest, and what sort of strategies are the funds adopting? By Joe Marsh
Pipelines and politics
The latest in a long line of disputes over natural gas supplies from Russia is raising concern among utility customers and investors that future supplies to the West may be disrupted. But is this a long-term problem? Oliver Holtaway reports
The energy equation
Quantitative analysis in the energy industry is undergoing a crucial transition as it moves out of the role of secondary support to sit at the heart of business decision-making. Stella Farrington looks at its advance
Delivering the goods
There’s huge scope for growth in the freight derivatives market, but to attract more players, existing participants need to adopt more innovative and sophisticated trading practices, participants say. Stella Farrington reports
In pole position
Sakonnet’s Thurstan Bannister says a sound footing in risk management and a customer-facing approach is the secret of his company’s success. By Stella Farrington