Feature
Looking to the long term
After years of public debate, the European Commission, energy companies and governments of gas-producing countries all seem to agree that long-term gas contracts are here to stay. So why is it still such a big issue, asks Maria Kielmas
LNG: handling flexibility risk
Even though the euphoria about the global liquefied natural gas market has dissipated, experts still forecast significant long-term growth. But in a buyer’s market the supplier has to understand the new risks. Maria Kielmas reports
Getting protected
Insurance premiums may have rocketed for power companies over the past year but new ‘dual-trigger’ insurance products could still be an efficient way of transferring price risk. James Ockenden reports
Fighting oil volatility
Oil cartel Opec froze its production output level at its last meeting in September. With war in Iraq on the cards, Shifa Rahman reports on the future of oil volatility
Build in or buy out?
Is it more cost-effective for companies to buy available systems from vendors or to develop and deploy their own energy trading and risk management solutions? Bob Bridger of Vedaris looks into the dilemma faced by many companies
Doing the maths: physical value-at-risk
ABB’s William Rutz and Bob Fesmire investigate new tools that calculate physical value-at-risk based on simulations of generating resources and power transactions
How to gain from risk premia
Brett Humphreys examines historic data for the natural gas market and finds smart traders could make money from hidden risk premia
Know your trade types
An accurate and clearly communicated classification of the types of trade a company carries out brings a better understanding of risk methodologies and where they are best used across the enterprise, says Greg Keers
The CRO road
A company-wide understanding of risk has never been more important for energy firms. Kevin Foster talks to three chief risk officers about their role and how it is changing
The three-way knock-on effect
Peter Nance and Lin Franks look at the interplay between market, credit, and operational risks and consider how firms might approach implementing an integrated company-wide system to tackle them
Untangling the web
Ruling out the need for a major software infrastructure project, web-based concepts make perfect sense for enterprise-wide risk management systems, says Martin Chavez
Keeping EAR simple
Brett Humphreys discusses how trading groups can be captured within earnings-at-risk and cashflow-at-risk models. He suggests taking a top-down approach instead of a bottom-up approach based on actual positions
Managing risk under SMD
Scott Greene, Mark Niehaus and Pankaj Sahay examine the impact of Ferc’s proposed standard market design on power risk management
Balancing the books
Regulators are taking advantage of a lull in power project development in the US to close loopholes in financing rules, reports Catherine Lacoursière
Out of the zone: nodal pricing takes hold
Congestion-constrained US electricity markets are likely to find relief with the arrival of a new pricing regime, reports Catherine Lacoursière
Clear in present danger
Energy companies are crying out for clearing solutions to reduce their counterparty credit risk. James Ockenden looks at new initiatives from London-based power exchange UKPX and German firm Clearing Bank Hannover
Confusion over a barrel
The latest efforts to stem price manipulation have left crude oil market participants wondering which contracts they should be trading and who will lead the pricing? Joel Hanley reports
A towering success
There is more to the Malaysian oil and natural gas giant Petronas than its impressive headquarters. One of Asia’s biggest energy players is finding new ways of branching out, as Joel Hanley discovers
Green risks for the black stuff
The impact of environmental risk on oil companies may be substantial, says a new report by the World Resources Institute. What will the effect be on the oil majors’ stock prices? James Ockenden reviews the report
Brent changes promise stability
The recent change in Platts’ definition of Brent crude oil follows much debate about the price assessment of North Sea Brent crude. Software vendor Logical Information Machines takes a historic view in a search for the reasons behind the move
After the swashbucklers
Oil exploration today is about taking as few risks as possible, meaning the smaller independent firms are losing out to the energy majors, as Maria Kielmas discovers
Market mind games
The year has seen surprisingly high oil prices, which has caught many forecasters unaware given widespread predictions of slow growth. Maria Kielmas reports
High oil and gas prices enhancing credit quality
The ‘war premium’ is propping up oil and gas prices and oil firms’ balance sheets. But debt levels and quality of assets are still king. Catherine Lacoursière reports