Feature
Commodity kickers
Retail investors are showing greater interest in commodity-linked products. but most of the structures launched in Europe so far have been based on small, tailor-made baskets. By Patrick Fletcher
Awards
Welcome to the annual Energy Risk awards, celebratingthe talent,innovation and enthusiasm that forms thebackbone of this industry.
Standard challenges
Early signs suggest European energy companies may, like their US counterparts,have problems complying with a new derivatives-accounting standard. But theydo have newguidelines to help interpret the rules. By Joe Marsh
Peaking patterns
Weather is increasingly affecting power market dynamics, with prices as variableas the temperatures. But the volatility has spawned a growing variety of methodsofmanaging peak load demand. By Catherine Lacoursiere
Contract killers
Hidden risks can lurk in unexpected areas – such as the contracting process. Brett Humphreys and Brett Friedman discuss how risk managers must look beyondsimple value-at-risk measures and find other potentially hidden exposures
Buyer beware
Risk-management software development is still struggling to recover from slashed budgets after the Enron debacle. So before choosing a new system, buyers should look closely at five critical areas, writes Salim Jabbour
Slaying the dragon
In the first of a two-part series on hedging risk, NeilPalmer looks at the effectsof imperfect correlation on basis risk, and finds that unless you have a perfecthedge, you may just have to learn to live with risk
Broken promises
Asian countries are now a power in the world’s energy markets, but governmentinterference in tariff structures and shaky sovereign guarantees mean regulatoryrisks forinvestors remain. By Maria Kielmas
The vendors’view
Energy software vendors are the first to admit they suffered financially fromthedownturn in the markets, but most stress they’ve developed innovative solutionsdespite the slump. Energy Risk put Salim Jabbour’s concerns to vendors
All bases covered
In 1997, Norwegian energy firm Statoil implemented an enterprise-wide risk management system with the help of Goldman Sachs. Eight years on, few energy companies can rival its approach. Joe Marsh discovers why
Tentative steps
Algeria’s state-owned oil company Sonatrach is about to become the first oil and gas company within Opec to roll out an independent risk management programme to cover its crude oil and gas sales. Stella Farrington reports
Battle for Brent rages on as open outcry closes at IPE
Open outcry at London’s IPE had its last day on Thursday, yet the debate over whether the screen can adequately replicate an oil market rages on, with IPE and Nymex both taking a punt on opposing beliefs.
Carbon copycats
The EU emissions trading scheme, which started in January this year, is already attracting the attention of hedge funds, who see opportunities in this developing and less crowded market, finds Solomon Teague
Clearer signals ahead
Estimating CO2 prices in the first Kyoto budget period of 2008–2012 is now a key risk-management challenge for utility analysts. Abyd Karmali, Sebastian Foot and Nazim Osmancik look at what is likely to drive prices in this period
Vying for top spot
Emissions traders will soon be looking beyond simple forward trades towards options, swaps and exotic derivatives. But for these markets to develop, a tried and trusted index or daily assessment must emerge. Several firms are now vying to become the…
Signs of the times
A comprehensive Energy Risk survey into emissions trading finds there is widespread confidence in the development of the market, but less conviction that the scheme will tackle global warming. Stella Farrington reports
Winds from the west
A raft of MOUs and price cuts during the past 18 months shows the determination of US exchanges to gain a foothold in Asian markets. But are Asian investors ready for their products? By James Ockenden
Has Opec lost control?
Minutes after Opec tried to cool scorching oil prices by announcing a hike in its output target, oil surged to record highs. Has Opec lost control, and is there anything it can do to bring prices down? Stella Farrington finds out
An energetic debate
Enterprise-wide risk measurement and management, regulatory issues and pricing and hedging strategies were the hot topics this year at Energy Risk Europe in Amsterdam. James Ockenden and Joe Marsh report
The battle for Brent
Open-outcry the IPE is over, but the debate over whether the screen can adequately replicate an oil market rages on, writes Stella Farrington
Answers in the wind
Project valuation means making calculated assumptions that aren’t always accurate. Brett Humphreys discusses the assumptions that may be embedded within a valuation and how these assumptions can affect the final value
Enter the scrum
A surprise Opec headline can throw the market into a tailspin, but gathering the news can be even more frenetic. In March, one scrum even resulted in broken bones. Stella Farrington writes from Iran
A star rises in the east
Iran’s ministry of petroleum has given the green light to launch a new petroleum exchange in the country. Mohammad Asemipour, adviser to Iran’s oil ministry and a key architect of the project, talks to Stella Farrington