Market risk
Energy risk manager of the year
Winner: BP
Risk manager of the year – retail
Winner: Reliant Energy Solutions
Storms ahead
Weather traders in Europe are celebrating the issuance of an innovative catastrophe bond by EDF. Meanwhile, US traders are concerned over attempts to regulate weather risk contracts as insurance, rather than derivatives. By Paul Lyon
Storage strategies
Abstract: Salt-dome storage facilities are a flexible way to take advantage of arbitrage opportunities in the natural gas market. Kislay Sinha and colleagues at Arizona Public Service discuss the valuation of a storage asset, examine ways of capturing…
Trading techniques
Abstract: A majority of merchant power plants built during the last few years in the US are combined-cycle units fired by natural gas. This article discusses asset-backed trading strategies for a merchant single-block power plant, showing how unit…
Taking the slow road
Recent developments suggest that clearing is likely to gain widespread acceptance in the European energy market. Market participants feel it is a question of how and when – not if – robust, liquid solutions will emerge. By Joe Marsh
Upwardly mobile
As energy prices creep upward, many factors are driving the markets. The upward trend and increased volatility is continuing as the markets evolve and mature. But are these markets operating efficiently and accurately, or are they being manipulated, as…
Beat the system
The complexity of the energy markets has given rise to a host of risks that traditional trading systems often do not address. Paul McLean-Thorne gives his views on a well-designed energy trading and risk management system
Nybot in Nymex sights
Nymex aims to buy Nybot as part of its expansion and acquisition drive, according to Nymex president Robert Collins.
Flying high
The US airline industry is struggling due to high jet fuel prices. Accordingly, one trade association is urging the Bush administration to change its oil purchasing strategy. By Paul Lyon
The deal deluge
Last year was certainly an interesting time for energy company financing, and some of the most important deals were completed just before year-end. Paul Lyon looks back at some of the major trends and asks what 2004 will hold
Winning players
A turbulent year in energy markets showed there was more competition between banks and oil majors, and further highlighted the need for a solution to the credit issues dogging energy companies and airlines. By James Ockenden
Risk at the margin
Competition and deregulation has led to new ways of running utilities, and the commodity-trading model has emerged as the leading approach. But the challenge lies in how it is applied, argues Lawrence Haar
Mark Tawney
Mark Tawney, head of Swiss Re’s weather desk, admits that more work is needed if the weather risk markets are to reach maturity. By Paul Lyon
Spread Modelling for Energy Risk
Jean-Noel Dordain and Stephane Mayrague, members of the Sophis research team, present the dramatic advantages of a spread risk analysis for energy trading.
’Tis the season...
Abstract: Aurelian Tröndle presents a general framework for modelling prices of storable and non-storableenergy assets, which sheds light on different market fundamentals, and showshow energy market volatility is seasonal and anything but stable. The…
Weathering the storm
Natural gas markets are thought to be one of the most sensitive to changes inthe weather, but how much do other factors affect price movements? MaryAshleyHall , energy market specialist with Fame, looks at some tried and tested methodsof managing weather…
Banks grab distressed UK assets
Six European banks intend to buy around 10GW of distressed UK power assets usingfinancial instruments. But their main rival, MMC, says hard cash is needed towin the UK market. By James Ockenden