Energy Trading and Risk Management (ETRM)
4 stars based on
Since I never met him before, I wasn't sure what he wanted. In just a few sentences, he communicated that he wanted to know who's doing it.
I had to guess the rest. This phone call woke me up from my 4 month hibernation to an energy industry turned upside down. Americans had left Europe with a whimper after its big bang entry two years before. I spoke to traders and risk managers in London, Hamburg, and the US. Before long, I concluded that things weren't as they seemed. This thin hardback was not easy to read. Even though the methodology multi-criteria decision making methods and application energy and environment were right up my street, I had to read it twice.
My conclusion was that it's enough to convince the reader to hire consultants rather then attempt to do it yourself. Click on the book if you want to find out more about it. Else read my review here. After writing about demand forecasting, I thought I'd leave price forecasting to the experts.
Price forecasting is nothing like demand forecasting. The issues are different. It was fun writing this final piece for Platts. One interesting thing about the experts I quoted - most of them had PhD's. In hindsight, I could have saved space by omitting the "Dr" in energy trading and risk management pdf of their names.
One of my readers asked me about price forecasting. It was too big to tackle, so I started with demand forecasting instead assuming that price is the intersection of supply and demand. Originally I had intended to invite forecasting experts to submit their work and I'd edit. After rewriting one of them, I decided that I might as well write an article myself.
This four page cover article precedes two energy trading and risk management pdf pieces on demand forecasting. I suggested to the creative director to make forecasting charts like paintings. And I was pleasantly surprised by the resulting hues. This was largely attended by chief financial officers of utilities and their equally interested bank analysts and ratings analysts.
This was the beginning of the strive for transparency as a result of Enron 's demise. After I invited Dr Gary Vasey to write an article about the vendors of risk management and trading systems, I decided to interview these energy trading and risk management pdf and consultants.
This was ongoing for almost a year before I came upon a storyline. This seven page article is somewhat of a satire, on the observation that energy companies were paying lots of money for something that usually didn't get delivered on time or at all. The decision making process requires many different parties, aside from the users, energy trading and risk management pdf often this is a political one. Web sources for climate change and emissions trading November 1 The structuring desk on a trading floor puts all the pieces together.
I had always wanted to understand how they did it. But the opportunity didn't arise until I was chasing after an economist about market design and just what he meant by combinatorial markets. This took me five months. Then I needed to find an example of this combinatorial market. The closest one I could find was Electrade, which was still in its beta testing phase. Energy trading and risk management pdf, they were very cooperative and educated me about how they put the requirements of buyers and sellers together.
The result was this four-page article with lots of illustrations. It was extremely tricky to write this article on emissions trading at a time when the future of the Kyoto Protocol was up in the air.
So I decided to theme it around the observation that some corporations were going ahead despite the uncertainty. It's better to be safe than sorry. I used my research to write another article for Freepint Newsletter on climate change web sites.
Five page article containing a time line of how weather derivatives were developed: Enron, Koch, or Aquila? Terminology of weather derivative indices and instruments. Power demand swap sidebar. Managing weather-related gas price volatility. I had earlier written an article on weather information sources on the Web for Freepint Newsletter, following my setting up the European weather data for Platts' European power newsletter.
Straight through processing, or STP for short, is really about integration and interfacing so energy trading and risk management pdf data can pass through as error-free and quickly as possible.
It is supposed to reduce operational risk. But the reality is not so obvious. Later I developed and moderated a 4. Financial and physical integration Jeff Robbins Session V. Risk management can largely be grouped into three types: Here I try to make what is generally considered tedious and mundane into an exciting subject that even chief executive officers should know about.
Not a level playing field. The original six page draft was cut down to three pages for the final version in Global Energy Business. But one managing director in Germany quoted in this article still uses the original version to introduce his energy trading and risk management pdf and US colleagues to the German electricity scene. While everyone uses the Internet, not many realise that there are many free and reliable information sources for energy.
The original article was intended for a special report in BusinessWeek. They were developers of systems used by brokers to post energy trading and risk management pdf match bids of traders.
After the three hour interview, I got enough of the basics to get started on this research. This analyticalQ section is sponsored by Eenergy Informer is an independent international monthly newsletter about 12 pages that has been around for the last decade. Contact analyticalQ webmaster if you would like to sponsor a page on analyticalQ. I entered the energy industry by way of my doctoral research on modelling for electricity capacity planning. It's necessary to distinguish what's been "published" and what remains "unpublished.
By "unpublished", I mean not officially published and made available to the general audience. This could mean an internal corporate memo, a presentation, or something that didn't get into print.
By "published", I refer to a piece that's gone through the editing, sub-editing, and energy trading and risk management pdf process. It's been printed in a magazine or newsletter or on a website. It's not always possible to publish the original submitted version.
Due to space constraint, an article may get substantially chopped. To improve readability and clarity, each article goes through sub-editing. But some readers still prefer the originals, hence the director's cut. Original drafts of Anne Ku's work or extracts are linked from the titles.
For more information, please contact Anne Ku. Books for sale - like new, unmarked, excellent condition. Enron links Tell someone about this!