Market risk
Staying one step ahead
Picking the right investment opportunities will never be a precise science, but a combination of global forecasting and risk management has enabled US Global Investors to become one of the most successful US mutual funds in the energy space. Its chief…
The clearing challenge
Growing over-the-counter trade in the energy markets, much of it from hedge funds, coupled with exceptional price volatility, could test the current clearing system to the limit, warns independent consultant Chris Cook
Strategies for success
To succeed in the fast-changing US gas market requires an effective hedging and risk-management strategy. Accenture’s Alexander Landia , Paul Equale and Julie Adams look at what firms need to do to win in this key market
The dragon’s revenge
In the second article on the pitfalls of hedging, Neil Palmer considers one of the risks of managing options: dynamic hedging. He shows there is an awful lot that can go wrong in the quest for perfect risk elimination
LNG makes headway
The market for liquefied natural gas is ripe for expansion, given the scarcity of oil and LNG’s cleaner burning properties, and a short-term market is emerging for the first time. Eric Fishhaut looks at the evolving structure of this international market
North AmericanEnergy Forum
Leading energy market players discuss market trends, credit risk management and the future of the energy sector market, with a special focus on Canada
Freight looks forward
Freight derivatives are increasingly seen as a key risk management tool. Banks and hedge funds are also trading them. But will the growth in liquidity continue, or is this another false start for the market? Stella Farrington reports
Valuing interruptus
Managing wholesale spot power price volatility by turning off supply offers a way of reducing price spikes, but measuring the value of such interruptibility involves costly modelling techniques. JK Winsen suggests a simpler alternative
The ABC of PCA
Often, the costs associated with implementing advanced statistical models can outweigh the potential benefits. Brett Humphreys shows how to smooth and speed up choppy simulations using principal components analysis
Commodity kickers
Retail investors are showing greater interest in commodity-linked products. but most of the structures launched in Europe so far have been based on small, tailor-made baskets. By Patrick Fletcher
UBS expands energy group and starts trading oil in Canada
UBS Commodities Canada moved into larger Calgary offices in May to accommodate its expanding energy-trading team, including a shift into crude oil. The firm, part of investment bank UBS, has hired its first crude oil trader, its first options trader and…
UK business paying £1bn/year too much for energy
UK businesses are failing to manage energy buying efficiently and as a result are exposed to volatile prices, losing up to £1 billion ($1.81 billion) a year, a new survey has found.
CME to launch more weather contracts
The Chicago Mercantile Exchange (CME) is set to list weather derivatives contracts for more cities in the US and Europe and to introduce two new types of weather contracts - probably by early July. Demand for CME weather contracts is fast increasing: as…
Awards
Welcome to the annual Energy Risk awards, celebratingthe talent,innovation and enthusiasm that forms thebackbone of this industry.
Peaking patterns
Weather is increasingly affecting power market dynamics, with prices as variableas the temperatures. But the volatility has spawned a growing variety of methodsofmanaging peak load demand. By Catherine Lacoursiere
Buyer beware
Risk-management software development is still struggling to recover from slashed budgets after the Enron debacle. So before choosing a new system, buyers should look closely at five critical areas, writes Salim Jabbour
Slaying the dragon
In the first of a two-part series on hedging risk, NeilPalmer looks at the effectsof imperfect correlation on basis risk, and finds that unless you have a perfecthedge, you may just have to learn to live with risk
Finian O’Sullivan
If anyone knows how to keep an oil company showing healthy profit, it’s FINIANO’SULLIVAN , chief executive of Burren Energy. EithneTreanor meets him
The vendors’view
Energy software vendors are the first to admit they suffered financially fromthedownturn in the markets, but most stress they’ve developed innovative solutionsdespite the slump. Energy Risk put Salim Jabbour’s concerns to vendors
The future of the floor
There have been many reports and studies comparing open-outcry and electronictrading and advocating one platform or the other.With the IPE putting all ofits eggs in the electronic basket last month, it is a great time to analyse thesituation and ask the…
RWE Trading reorganises coal, oil and freight ops
Alex Thistlethwayte has joined RWE Trading, part of German utility RWE, as head of a new department, Global Commodities Trading. He was previously director of oil trading at Deutsche Bank in London and has also traded natural gas at BP. The move is part…
CCRO data hub update to follow Energy Risk USA conference
The US-based Committee of Chief Risk Officers (CCRO) will give a presentation in Houston next Wednesday, May 11, on the energy data hub it is developing. The session will follow the last presentation of the Energy Risk USA 2005 conference and will take…
Expect oil at $150 in a decade, Soros colleague warns
Jim Rogers, co-founder with George Soros of the Quantum Fund, has predicted oil will be at $150 within the next 10 years.