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Natural gas

Mifid II adjustments fail to ease energy firms' worries

Energy firms such as utilities are fighting hard to avoid being regulated under Mifid II and having to comply with onerous EU financial rules. But despite last-minute changes to regulators’ proposed technical standards, the chances of escape appear slim

Quant ideas: Do we need realistic models?

It is often assumed that realistic models are a prerequisite for successful risk management, but this is not necessarily true. While using any model blindly can be extremely dangerous, simple Black-Scholes or Ornstein-Uhlenbeck models are more than…

US shale boom poses challenge to Henry Hub benchmark

Henry Hub, the US natural gas benchmark, is being called a "broken proxy" as the shale revolution boosts production in the northeast US. But potential alternatives, such as Pennsylvania's Dominion South, will find it difficult to seize Henry's crown

Oil collapse fails to dent zeal for hub-based gas pricing

In recent years, European buyers of natural gas have pushed strongly in favour of contract pricing based on the continent's gas hubs, rather than more traditional formulas linked to the price of oil. Given the huge drop in crude prices, has this stance…

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