Energy
Opec keeps a tight grip
The latest production quota cut by the Organisation of Petroleum Exporting Countries has forced prices up, but will crude oil producers in Europe and elsewhere co-operate to help them stay up? EricFishhaut examines the situation
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
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
Post-delivery problems
The credit exposures that arise from trading physical and financial energy are inherently more complicated and volatile than those encountered in trading purely financial products. Richard Sage looks at the different elements to be considered
Cross-border conundrums
Analysts at rating agency Standard & Poor’s Lee Munden and Paul Lund look at the future of cross-border trading in Europe, given the credit crises of 2002
Ahead of the green game
Given the efforts they have already made to reduce emissions, many German firms do not share their environment minister’s enthusiasm for the EU’s new, obligatory cross-border greenhouse gas emissions trading market. Jessica McCallin reports
The bigger they come…
The German market is at the heart of the European power business, but it has stuttered since its early promise, and has yet to set the pace for the region as a whole. From a new entrant’s point of view, this is only to be welcomed, argues Ben Tait
Judicial stalemate
German natural gas market liberalisation is stalled between the courts and a corporatist business culture, finds Maria Kielmas
Capturing value from energy supply and trading
Companies that plan to engage in energy trading need to invest in the right personnel, processes and information management tools if they intend to be successful, says David Dunkin, SolArc’s Chief Strategic Executive
Making sense of the new power market
Bank of America’s Rogers Herndon and David Mooney examine expectations in the energy and power markets before and after the collapse of Enron and outline their predictions for the future
Trading natural gas futures with weatherfutures at the CME
Craig Jimenez and Mirant’s Vishu Kulkarni discuss how the burgeoning relationship between the natural gas futures market and the weather futures market is providing opportunities for traders, hedgers and speculators alike
Clearer waters for ratings
Despite a credit ratings crisis in the energy markets, the prognosis for natural gas companies looks stable, finds Shifa Rahman
Gas storage and power prices: inextricably linked
While much has been made of the effect of natural gas storage on gas prices, very little thought has been given to its impact on the price of electricity. John Hopper, president of Falcon Gas Storage Company, analyses the situation
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
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
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