Feature
Both sides of the fence
Ernst Eberlein and Gerhard Stahl analyse price series of 25 energy spotrates simultaneously using Lévy models. This model class allows thecapture of stochastic behaviour of these financial instruments.Theimplications of this analysis will form the…
Turbulent times
The new Renewable Sources Act obliges German utility companies to buy all the wind power generated in the country on any one day. And it is adding a new volatility to the German power market. By Stella Farrington
Germany’s closed shop
Despite six years of liberalisation, Germany’s gas market is still virtually closed to outside competition. Writing from Germany, Stella Farrington looks at whether new regulation is finally about to bring change
Hanging on at the top
This year’s User Choice Awards demonstrate that quality counts. In a fast-changing market, the top vendors and packages have managed to stay ahead of the pack. But the winners cannot rest easy. With IT budgets deflated, it’s a competitive market, and…
A shift in perspective
As far as the electricity market is concerned, the EU emissions trading scheme is aimed only at the generation side of the market. But end users also affect carbon emissions levels. This could represent a missed opportunity. Here, Oliver Rix, Phil Grant…
A solid foundation
MotherRock, the energy hedge fund set up by former Nymex president Bo Collins, recently chose Kiodex’s ASP-based risk management software. Joe Marsh explores the trade-off between web-based and installed systems
Calgary’s oil patch
Some Canadian oil and gas producers got their fingers burnt last year as oil prices soared and hedging programmes resulted in big losses. What will their strategies be in 2005? Catherine Lacoursiere reports
A complicated option
Why does the New York Mercantile Exchange not list average-price WTI crude options as a contract on its ClearPort electronic platform? Internal politics could be the main obstacle. Joe Marsh reports
Ethanol
The production of ethanol – a component of gasoline – is growing fast, which has led to the imminent launch of two ethanol futures contracts and a joint production venture involving Sempra Energy. By Joe Marsh
Opec split over increasing oil production
Ministers of the Organisation of Petroleum Exporting Countries (Opec) arriving in the Iranian city of Esfahan Tuesday sent out mixed messages over the expected outcome of Wednesday’s meeting.
The swap terminator
Multilateral swap cancellations look set to become commonplace in the energy sector, thanks to a service from TriOptima, which has just terminated its first round of oil swaps for six firms. Joe Marsh reports
Layers of intrigue
The Yukos saga – up to now largely confined to the political and legal arenas – recently took a step closer to the physical oil markets with a $6 billion oil deal between China and Russia. By Stella Farrington
A bid for power
Clock auctions are a fairly recent method for utilities of procuring electricity from suppliers, but only New Jersey has an established process. Yet Ohio and Illinois are showing interest. Joe Marsh reports
Exceptions to the rule
With commodity markets set to fall within the scope of more EU regulation, trade associations are concerned that this extra burden on market participants could stifle trade. By Stella Farrington
A good bet for 2005
2005 is forecast to be a tough year for many hedge funds, but the saturation of some of their traditional markets could prove a boon to the energy sector, finds Stella Farrington
Correlation: the horror!
The murky world of correlation, with its many pitfalls, represents a black hole in the minds of some energy market professionals. But, says Neil Palmer , you needn’t be afraid of the dark
Smoke without fire
The market for US financial coal swaps may be starting to show a little potential, but some major obstacles still remain before it catches alight – not least a widely accepted price index. By Joe Marsh
If the cap fits...
Legal compliance seems the only way to achieve cuts in carbon dioxide emissions. Europe is leading the way, but the US is some way from a similar approach, despite a regional initiative sparking some interest. Joe Marsh reports
Crude imitation
Hedging Canadian heavy crude oil is difficult: unlike Canadian light crude, ithas no closely matching price benchmarks. Trading basis differentials is onesolution, but help may be at hand from another quarter. By JoeMarsh
A Kyoto windfall
Heavy polluters needing to reduce emissions under new EU legislation may find a solution in the developing world under Kyoto’s Clean Development Mechanism. Stella Farrington reports
Open for business
The EU Emissions Trading Scheme began this month, but much of the success of the fledgling carbon market will hinge on the behaviour of the 5,000 small companies who make up the bulk of the market. By Stella Farrington
Powering prices
The UK supplies the lowest priced power in Europe, and its Department of Trade and Industry wants to keep it that way. So it has published a report uncovering how the European Emissions Trading Scheme will affect power prices across Europe. By James…
The ETS law is an ass
Consultant Chris Cook offers a sceptical view of the development of European emissions trading, and suggests a new global energy solution based on an alternative to the financial market paradigm
Double exposure
Continuing our series on applications of Monte Carlo simulation to applied problems in energy risk management, Les Clewlow , Chris Strickland , Oleg Zakharov, and Scott Browne look at potential future exposure and the analogous measure of expected credit…