Energy transition
Renewable PPAs find favour among corporates
A small but growing number of companies are using renewable energy power purchase agreements to lock in cheap forward electricity prices. But it may take some time before going green becomes a sound risk management strategy for all firms, writes…
Volatility set to return to US natural gas market, warn analysts
Booming shale production has brought US natural gas prices to 10-year lows and dampened market volatility, making life difficult for traders. But with rising demand from industrial users, power generators and exporters of liquefied natural gas,…
Ferc ruling raises hope of greater regulatory certainty
The US Federal Energy Regulatory Authority has seen its authority sapped by squabbles over turf – most recently, losing a court battle over an attempt to fine Brian Hunter, a former natural gas trader at imploded hedge fund Amaranth Advisors. Could there…
Ferc won’t appeal Hunter ruling, says Wellinghoff
Ferc chairman says agency won’t appeal ruling against it, but will seek to persuade Congress to change the law
South Korean power outage fears loom high on agenda
A lack of investment in generation capacity and safety-related nuclear shutdowns left South Korea facing warnings of severe power shortages over the past year. That is putting investment in energy infrastructure and security of supply high on the…
Evolution Markets creates Singapore physical coal desk
Evolution Markets is latest firm to ramp up efforts brokering coal cargoes in Asia
Lack of regulatory clarity hampering PRA code of conduct
Price reporting agencies expect to release updated industry code of conduct shortly, but warn regulatory uncertainty could delay their efforts
Cutting edge: Correlation functions in the crude oil and natural gas futures markets
Given the importance of the crude oil and natural gas futures markets, the intra-market correlations in these markets play an important role in pricing, hedging and managing the risks of energy portfolios. This paper by Ehud Ronn contributes to the…
Risk & Energy Risk Commodity Rankings photos
Winners of the 2013 Risk and Energy Risk Commodity Rankings were honoured at a cocktail reception in London on February 12. Here, we present the highlights
NWE power market coupling struck by delays
The European Union’s biggest power market coupling project to date has been beset by delays and will not now be be completed before the end of 2013. What is behind the setbacks and what do they mean for continuing efforts to forge a pan-European…
Turning Points: Bill Perkins, Skylar Capital Management
Bill Perkins, founder of Skylar Capital Management, sees opportunities in US natural gas markets, even as depressed prices and low volatility prompt other traders to pull back. Alexander Osipovich reports
TNK-BP saga raises questions about BP's handling of political risk
Following a series of bitter spats with its Russian partners, oil major BP exited its Moscow-based joint venture, TNK-BP, in March. Market participants say the oil major’s experience holds lessons for other firms attempting to grapple with political risk…
NGL hedging takes off amid shale gas boom
US production of natural gas liquids (NGLs) has surged in recent years, causing NGL derivatives trading to expand as market participants hedge more of their output. But the market for NGL risk management products remains a work in progress, finds…
Asian refinery activity boosts oil derivatives trading
The growing market clout of refiners in Asia is giving the region a healthy boost in trading activity for derivatives linked to oil and other refined products. With local refining capacity set to grow, the trend looks likely to continue – a development…
Financial transaction tax could raise energy company hedging costs
FTT will increase hedging costs for energy companies and deter them from trading with financial counterparties, firms say
Platts and Shell seek support for competing Brent crude reforms
Oil major Shell and price reporting agency Platts offer rival plans to fix market distortions in Brent crude oil
Collateral and commodity market dynamics in the new normal
Collateral quality and depth are playing an increasingly important role in a market characterised by systemic risks and high correlations among asset classes, including commodities. That is a trend that should concern energy risk managers, argues Stephen…
Energy Risk Software Survey and Rankings 2013
Energy trading and risk management (ETRM) software budgets are declining, just as new regulatory requirements are putting more demand on ETRM platforms than in previous years, according to the results of Energy Risk’s 2013 Software Survey and Rankings…
EU ETS faces back-loading test
Dismal prices in the European Union Emissions Trading System are causing interest in the world’s largest emissions market to wither away. While the European Commission has come up with a plan to put it on life support, analysts say there is a 50:50…
Q&A: Alberto Pototschnig, Acer
Alberto Pototschnig was appointed as the inaugural director of the Ljubljana-based Agency for the Cooperation of Energy Regulators in 2010. In an exclusive interview, he speaks to Mark Pengelly about market manipulation, financial regulation and the…
Tankard natural gas indexes greeted with scepticism
Traders show little enthusiasm for Tankard indexes of European natural gas, despite ongoing concerns about the reliability of assessments by price reporting agencies. Gillian Carr reports
Energy firms scramble to avoid swap dealer label
Switching to futures and rewriting corporate websites could help reluctant energy companies avoid having to register as swap dealers under Dodd-Frank, reports Alexander Osipovich
Futurisation worries end-users of OTC energy derivatives
Regulation has caused much of the over-the-counter energy derivatives market to move to exchange-traded futures. While many market participants welcome the shift, derivatives end-users worry that it could harm their ability to hedge. Alexander Osipovich…