Energy
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
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
Exchanges eye weather
New exchanges are entering the weather risk arena despite Liffe’s failure to successfully market its European weather futures. But while the US exchanges appear bullish, European entrants are treading cautiously. Paul Lyon reports
Getting a grip on the market
Innogy, a US energy company, is well placed to take advantage of the rewards that weather trading can offer. Eurof Thomas finds out the secret of its success
Aquila’s troubles could break emerging markets risk
Confusion at the weather derivatives operations of energy giant Aquila is having a knock-on impact on the development of weather products in emerging markets around the world. Paul Lyon reports
A change in atmosphere
The overall condition of the weather derivatives market is in flux, but there are still plenty of financial institutions who don’t mind a mixed forecast. By Navroz Patel, with additional reporting by Paul Lyon
Canada opens new pastures
Alberta’s Agricultural Financial Services Corp came to Aon with a special need to hedge precipitation risk, and Aon rose to the challenge. The transaction uses a unique index. Catherine Lacoursiere reports
European info squall to clear
At last, weather data is starting to become available in the European market, spurring growth in the weather derivatives market there. Paul Lyon reports
Tools for the trade
Ken Nichols examines the mechanisms available for incorporating credit risk management into an energy company’s portfolio
Higher or lower?
Kevin Foster looks at how credit rating agencies assign a rating to companies in the energy sector and what kind of factors are taken into account
A whole new ball game
Enron’s bankruptcy has changed the playing field for credit risk in the energy sector. Kevin Foster reports on the renewed significance of assessing credit quality
Growing quietly
The liberalised German markets now allow large industrial end-users to manage their energy price risk. But, while the competition to manage their exposures is large, these firms are playing their cards close to their chests, reports Joel Hanley
Clearing the way?
The German over-the-counter market has been growing quickly in recent years, but a series of shocks has sparked fears of credit risk exposure. Can trading regain recent highs and save the OTC market from credit-wary traders, asks Joel Hanley