Energy transition
Managing operational risk at commodity trading firms
Proactive management of operational risk is critical to ensuring an organisation responds effectively to ever-changing market conditions and regulatory environments. Julie Shochat and Kenzel Fallen outline how to align strategy, processes and…
Low US natural gas prices stir hedging talk
As the boom in North American shale gas production continues to feed an oversupplied market, US natural gas prices sank to 10-year lows last week. Gas consumers are taking a serious look at seizing the opportunity to lock in prices — but remain hesitant…
Energy Risk Deals of the Year 2012
In this special feature, Energy Risk highlights six deals that showcase the innovation currently present in energy financing, structuring and derivatives trading
Energy Risk's 2012 Software Survey and Rankings
Tighter budgets and looming regulation are key factors impacting decisions around energy trading and risk management software systems this year, according to Energy Risk’s Software Survey. David Wigan and Stella Farrington analyse the results
Energy Risk Deals of the Year 2012: SG CIB's Russian gas field financing
Société Générale Corporate & Investment Banking arrange €1.1bn financing for gas field in northern Russia
Energy Risk Deals of the Year 2012: Carlyle's Plainfield funding
The Carlyle Group rescue Plainfield renewable energy plant with $125m senior debt funding
Energy Risk Deals of the Year 2012: BarCap's VPP deal with Chesapeake
Barclays Capital pioneers new volumetric payment deal with Chesapeake that allows more investors to take part
Energy Risk Deals of the Year 2012: BAML's LNG deal with Gate
Bank of America Merrill Lynch becomes first investment bank to facilitate full commissioning services in its deal with Dutch Gate LNG terminal
Analysing common processes used to model energy prices
Choosing the appropriate process for modelling energy prices is essential for best calculating value, risk and hedging metrics for energy derivatives and assets. In this first article of a six-part series, Carlos Blanco and Michael Pierce discuss some…
How relevant is VAR for energy markets?
Despite its many limitations, value-at-risk (VAR) is still the most commonly used risk profile measuring tool in the energy industry. In this first article in a new series, Chris Strickland discusses why the energy industry’s love affair with VAR could…
Refiners seek innovative tools for risk management
Battered by tight margins and volatile oil markets, refiners are exploring a range of innovative tools to contain costs and improve risk management. Alexander Osipovich reports
UK power market risks losing more liquidity unless structural change introduced
The UK power market risks becoming even more of a closed shop unless initiatives to introduce structural change are successful, according to some market experts. Gillian Carr reports
Oil analysts' 2012 price forecasts up slightly on 2011 average
Geopolitical tension is propping up the oil market, even as a shaky global economy threatens to sap demand. Analysts offer Alexander Osipovich their views on oil prices in 2012
Seeking opportunities in coal trading
Coal prices are expected to have better support this year than last, but trading opportunities will lie in relative-value strategies, say market experts. Jay Maroo reports
Fuel oil prices seen remaining high
Prices for fuel oil, historically one of the least profitable parts of the crude barrel, are close to all-time highs.
EU ETS set-aside takes another step forward
The European Parliament's Committee on Industry, Research and Energy has voted for the use of a set-aside under the European Union Emissions Trading Scheme
Cutting edge: Valuation of spread commodity structures
In this paper, Dan Mahoney and Krzysztof Wolyniec show that in co-integrated (mean-reverting) futures markets, active dynamic hedging is required to realise the quadratic variation of the underlying spread process. Using static hedges/portfolios yields…
Doubts raised over US Department of Energy CRO proposal
An independent consultant hired by the White House to assess the US Department of Energy’s loan programmes in the wake of the Solyndra bankruptcy has advised the agency to hire a corporate-style chief risk officer and beef up its risk-management…
Refiners step up hedging activity
Refineries in Europe have stepped up their hedging activity in recent months as they take advantage of a recovery in margins, market participants say
Risk & Energy Risk – 2012 Commodity Rankings – energy
After a rollercoaster year in the markets, Morgan Stanley seized the top spot in the 2012 Risk and Energy Risk Commodity Rankings, while its traditional rival, Goldman Sachs, slipped to number two. Alexander Osipovich reports. With additional reporting…
Energy trading system provider Brady acquires Navita, Syseca
Technology provider Brady will be expanding its presence in energy trading and risk management technology through the purchase of Navita Systems and Syseca
Q&A – Ice Futures Europe’s David Peniket and Mike Davis
In the second part of Energy Risk’s series on the future for the exchange-traded energy markets, Ice Futures Europe’s David Peniket and Mike Davis talk to Pauline McCallion about the likely direction of the market in 2012 and beyond
European power market coupling marches on
Market coupling projects continue to spread across Europe, bringing the market closer to achieving a single power price – but challenges still lie ahead. In the first article in a series focusing on European power markets, Gillian Carr looks at the next…