Market risk
A comeback for coal
With gas prices soaring, it seems inevitable that coal - the Cinderella of energy resources - is bound to return to the forefront. But how long will it last? asks Eric Fishnaut
Commodities Count 2006
The recent swell in energy market participants means the battle for dominance has never been fiercer, but the increased competition means ever-more sophisticated product offerings, finds Stella Farrington
At the flick of a switch
Jesper Andreasen and Martin Dahlgren present a regime-switching model for electricity derivatives that incorporates spiky spot-price dynamics and allows for closed-form pricing of forwards, options and swaptions
Questioning dollar cost averaging
When implementing a hedging strategy, the popular dollar cost averaging approach may sometimes be less prudent than the lump-sum method for managing energy risk, writes Tim Simard
Correlation - The energy price factor
Navneet Arora provides empirical evidence that significant correlations exist between the movements of commodity prices and the credit quality of firms in the energy sector
In defence of Gazprom
The Russian gas giant's recent price dispute with Ukraine has not given it the best start to the year, but the cat calls of political bullying are not deterring Gazprom's European customers, writes Oliver Holtaway
Ice Futures to launch WTI contract
Ice Futures will launch a cash-settled West Texas Intermediate (WTI) light sweet crude oil futures contract on February 3. The contract will be automatically available to all users with access to Ice Futures oil contracts.
FPL/Constellation merger could be tip of iceberg
High gas prices look set to usher in a wave of fresh consolidation in the utility sector, as companies strive to save costs
Possible CME move for Nymex muddies the waters
The Chicago Mercantile Exchange's potential bid for a stake in the New York Mercantile Exchange could further heighten tensions at Nymex over the agreed deal with General Atlantic. That's if the CME comes up with a concrete proposal
The blame game
In the first of two articles on the effect of speculative traders on energy prices, Tom Matthews of Kinder Morgan argues that speculators do not cause price volatility and outlines research he has done on the subject
Market focus - Sky-high cost of clean air
US emissions allowance prices for sulphur dioxide (SO2) rose nearly 200% in 2005 and 300% during 2004. Sandy Fielden of Logical Information Machines examines the SO2 emissions allowance market and discovers which market drivers are forcing prices ever…
The advantage of ASPs
Web-based energy-trading solutions offer certain advantages over server-based systems, says Thurstan Bannister. In a later issue, we will publish an article setting out the benefits of server-based software
Deriving storage value
Following an article Energy Risk published in July, TransCanada's Farzan Nathoo looks at how companies can extract value from their natural gas storage assets
Package deals
Banks have been choosing off-the-shelf fully integrated systems for energy trading and risk management. But some feel the available software still falls short
OpenLink, Triple Point sign more bank clients
Rival US-based energy trading software suppliers OpenLink and Triple Point Technology (TPT) both signed big new clients this year, increasing their dominance of the energy software market for the banking sector.
Duke Energy to adopt Cinergy trading approach
Following the transfer of its energy derivatives portfolio to Barclays Capital, Duke Energy is targeting a lower-risk trading strategy pioneered by Cinergy, the company it is buying
What drives natural gas?
Natural gas prices in the US are at an all-time high. The Gulf Coast hurricanes and record summer heat have taken their toll, and business is feeling the effect. Studying and applying seasonality can often protect aganst the volatility of these markets,…