Energy
Bright future for weather derivatives, finds survey
Energy Risk has completed its inaugural weather derivatives survey and the results show that traders appear to be confident about the state of their business, despite high profile exits from the industry in recent years.
Singing in the rain
Melbourne-based Southern Hydro Partnership signed its first precipitation hedgelast year – a landmark deal that paved the way for a number of other contractsto protect itself from the risk of low rainfall. Paul Lyon reports
Following the trend
The analysis of historical meterological data is vital for structuring weatherderivatives. But how should weather traders deal with the trends that may existsin the data? Steve Jewson and JeremyPenzer investigate
Weather wrap-up
Energy Risk’s inaugural weather derivatives survey shows that traders and end-users appearto be confident about the state of their business, despite high-profile exitsfrom the industry in recent years. Paul Lyon analyses the results
Accepting responsibility
Alex Schippers heads ABN Amro’s weather team – arguably one of the most innovative desks in Europe. Here he talks to Paul Lyon about the state of the global weather risk market
Raining information
Weather data is becoming increasingly accessible and more detailed, and – in Europe at least – publicly available data looks set to become less costly. Joe Marsh reports oncurrent developments in the weather risk market
Putin’s endgame
The geopolitical premium on oil prices is rising as Russia pursues its ‘oligarchs’. Catherine Lacoursiere reports on the wider effects of Russian oil giant Yukos’ collapse
Shell agrees $150 million fine over reserves scandal, releases interim results
Royal Dutch/Shell Group looks set to pay $150 million in civil penalties and spend $5 million on developing an internal compliance programme, following its recent overstatement of reserves. The energy giant has agreed in principle with the UK Financial…
Evolution looks west with Unger
Evolution Markets is expanding to provide brokerage services to the California emissions trading markets. Leading the company’s efforts in San Francisco is Samantha Unger, one of the California emissions markets’ most experienced brokers.
BNZ enters energy trading
The Bank of New Zealand (BNZ) has launched an energy risk management desk. The plan is to target the bank’s corporate client base who need hedging solutions for their energy, base metals and agricultural commodities exposures, said Wayne Jolly, BNZ’s…
US regulator doles out Enron fines
The US Commodity Futures Trading Commission (CFTC) has hit Enron and its former trader Hunter Shively with $35 million and $300,000 in civil fines respectively for gas price manipulation.
APX restructures and hires senior staff
APX Group, which provides exchanges for natural gas and power trading across northwest Europe, will move London-based power exchange UKPX’s forwards market onto its own system on August 18. The group has also made several senior appointments following…
Faith in the figures
There are signs that price reporting will remain voluntary, despite the drop-offin reporting levels, but proposals are still being made on all sides. EricFishhaut looks at the progress being made to achieve greater price transparency
Nordic volumes heading south
Nordic region electricity trading volumes are falling fast, which is damagingprofits at Oslo-based power exchange Nord Pool. The company may face postinga loss for 2004 if it cannot reverse this trend. Joe Marsh reports
Dealing in doubt
Scepticism still surrounds the EU’s National Allocation Plans for theEuropean Emissions Trading Scheme (ETS) starting in January 2005. IvanO’Toole discusses the cost implications of the Kyoto Protocol for the EU power industryand anticipates a few…
EC fails emissions scheme, says E&Y director
The European Commission’s failure to challenge eight EU national allocation plans undermines Europe’s ability to meet its carbon dioxide emissions reduction targets agreed under the Kyoto Protocol according to Ernst & Young’s director of emissions…
APX restructures, makes senior hires
Amsterdam-based APX Group, which provides exchanges for natural gas and power trading across northwest Europe, will move London-based power exchange UKPX’s forwards market onto its own system on August 18. The group has also made several senior…
Statoil penalised over Iranian scandal
Norwegian energy company Statoil could be fined 20 million Norwegian kroner ($2.92 million) in relation to a payment it made to a London investment firm for advice on conducting business in Iran.
Voser returns to Shell from ABB
Troubled energy major Royal Dutch/Shell has appointed Peter Voser as director of its Shell Transport and Trading Company subsidiary and as group managing director and director of finance of the Royal Dutch/Shell group.
APX to launch Zeebrugge gas exchange
APX – formerly known as the Amsterdam Power Exchange – today said it will launch a natural gas exchange for the Zeebrugge hub in January 2005. APX will develop the exchange in conjunction with Huberator, a subsidiary of Fluxys, the Belgian gas…
Fortis to enter energy trading with Xenon
Fortis Financial Services, the market trading affiliate of Fortis Bank, has selected Sakonnet Technology's Xenon trading and risk management application for its new energy trading activities in New York.
Banks make first Isda emissions trade
Investment banks Dresdner Kleinwort Wasserstein and Fortis Bank have made the first ever trade of European Union emission allowances (EUAs) using an annex to the International Swaps and Derivatives Association (Isda) Master Agreement.
Tepco hedges weather
The Tokyo Electric Power Company (Tepko) has entered into weather derivatives contracts with both Tokyo Gas Company and Osaka Gas Company. The deals have been finalised in a bid to limit the effect on Tepco’s earnings from summer temperature conditions,…
WRMA elects new president
The Weather Risk Management Association (WRMA) today said that its vice president, Brian O’Hearne, has stepped up to serve as the association’s president. O’Hearne is also president and chief executive of Kansas City-based GuaranteedWeather.