Feature
Upstream sector gets flexible
The oil exploration and production sector is transforming its thinking and trying to become more flexible by using portfolio management models, finds Maria Kielmas
Trading crude blows
Banks and oil majors alike are building up their oil derivatives operations, vying to attract the same corporate client base. But the oil companies do notseem unduly concerned about the competition, finds Paul Lyon
Refining systems for oil trading
The increasing complexity of the crude oil business – on both the physical and financial side – means companies in the sector need fast-changingand flexible software to manage their operations. CliveDavidson reports
Profiting from gas prices
Rachel Jacobson of energy information and software provider Fame looks at how natural gas prices are likely to rise and what firms can do to protect against them
Eyeing the pricing
US energy regulators are keeping an ever-more-watchful eye on gas and power price reporting – but are they finally flexing their muscles appropriately? Paul Lyon reports
The great gas price divide
US natural gas prices may be volatile, but is there a real need to worry? Some participants blame the New York Mercantile Exchange for price spikes and worry about the future, while others see no problem with the market’s health. By Paul Lyon
The politics of betting
Using markets to forecast political events may not be as strange an idea as it seemed in July, when a terrorism futures scheme collapsed. But there is still scepticism as to whether such an approach would be ethical or effective. By Maria Kielmas
Measuring the value of clearing
Central clearing houses offer major advantages to the electricity trading industry, says UK Power Exchange’s Paul Danielsen. He sets out a practical example to demonstrate how UK power firms can benefit from clearing
To store or not to store
Here we describe the optimal operation and valuation of gas storage based on a real option methodology. Using Zeebrugge gas prices as a practical example, Cyriel de Jong and Kasper Walet clarify the optionality in gas storage, analyse its valuation and…
Gas supply problems persist
Natural gas prices are likely to remain high, as the Bush administration’s efforts to open up new sources of supply continue to face opposition. Kevin Foster reports
US gas squeeze hits power
Tight natural gas supplies in the US are adding to worries over reliability of electricity supplies, says Richard McMahon of the Edison Electric Institute
Power to the European gas markets
Interesting developments in theEuropean gas markets mean that 2003proving to be a good year.Luca Baccarini, managing director ofGaselys and market expert, looksforward to profitable times
Breaking down the model
Brett Humphreys and Andy Dunn outline a method to help energy companies minimise potential model risk and thereby avoid costly errors in valuing deals
Pieter Verberne
Pieter Verberne, Amsterdam PowerExchange’s (APX) chief operatingofficer, is a busy man. The Dutchexchange is finalising the technologyupgrading of its recent acquisitions, naturalgas exchange Enmo and Automated PowerExchange, both based in the UK. It is…
Switching off to save cash
High electricity price volatility over the European summer has raised awareness of interruptible power contracts, finds James Ockenden
Farms weather power shortages
Farmers in both hemispheres are struggling to cope with heat waves and droughts while pondering the prospect of future power supply disruptions, finds Maria Kielmas
Getting it together
Data consolidation is now a vital foundation to any successful risk management implementation, as Dave Rose and Stuart Cook of The Structure Group report
Watching the home front
The growing international controversy about Iran’s nuclear ambitions as well as internal unrest may stall foreign investment in the country’s energy sector in a way that US sanctions have failed to do. Maria Kielmas reports
Taiwan’s growing risk appetite
Relying on imports for most of its energy requirements and constrained by the government’s view that risk management is gambling, how can Taiwan tackle the challenge of price risk in its growing energy sector? By David Hayes
A hard Act to follow
The final piece of the Sarbanes-Oxley Act – section 404 – falls into place this month, requiring internal control reports. While the Act may go some way to restoring investor confidence, it is costing energy companies dear, finds Kevin Foster
System-ready for Sarbanes-Oxley
Energy companies are not alone in having to review their operations to comply with the Sarbanes-Oxley Act. Energy software suppliers, too, are looking at their systems, although most are confident they are already well prepared, finds Clive Davidson
Deregulation versus re-regulation
While the US authorities are still ironing kinks out of a major electricity market redesign and looking to repeal the utility industry’s most influential Act, US regulators and self regulators are moving to fill the vacuum. Catherine Lacoursière reports
A true test for value-at-risk
The three classic approaches for measuring portfolio value-at-risk do not compare like with like, argues Richard Sage. Here he presents a test portfolio to highlight the differences between calculation methods
All talk, no action
Cancelled power plant auctions and the complexities of asset debt structures are bad news for the boutiques set up to acquire power assets. The boutiques talk a good business plan – but execution may prove troublesome, as Paul Lyon discovers