Managing Energy Price Risk

<body stylesrc="../_private/template_title.htm" topmargin="10" leftmargin="10" bgcolor="#FFFFFF" link="#333366" vlink="#000000" alink="#000000"> <table border="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" cellpadding="0" id="table2"> <tr> <td width="780"> <div align="center"> <table border="0" cellpadding="5" cellspacing="0" height="206" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table3"> <tr> <td valign="top" align="right" height="198" width="1%"> <p align="left"> <img border="0" src="../images/book_risk_(2004)_energy.gif" width="128" height="200"></td> <td valign="top" align="left" height="198"> <table border="0" cellspacing="1" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" id="table4"> <tr> <td colspan="3" width="0%"> <p class="book_title">Managing Energy Price Risk</td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> <img border="0" src="../images/blank_2x2.gif" width="2" height="2"><img border="0" src="../images/blank_2x2.gif" width="2" height="2"></td> <td width="52%" class="book_details_tags" valign="top" height="144" align="left" rowspan="9"> <map name="FPMap2"> <area href="../main/ratings.htm" shape="rect" coords="73, 0, 162, 33"> </map> <img border="0" src="../images_title/risk_b81.gif" usemap="#FPMap2" width="163" height="158"></td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" height="32" align="center" width="50%" rowspan="2"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> </tr> </table> </td> </tr> </table> <table border="0" cellpadding="10" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="468" id="table5"> <tr> <td> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td></tr> </table> </div> <table border="0" cellpadding="5" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table6"> <tr> <td width="50%" valign="top" rowspan="2"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table7"> <tr> <td width="100%" bgcolor="#333366"> <p class="header_yellow" align="center">Contents</td> </tr> <tr> <td width="100%" class="explanatory_text"> <table border="1" cellpadding="0" cellspacing="5" style="border-collapse: collapse" bordercolor="#CCCCFF" bgcolor="#CCCCFF" width="100%" id="table8"> <tr> <td class="contents_expanded"> <p class="contents_expanded" style="margin-top: 14; margin-bottom: 9">Introduction </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9"><b>ENERGY INSTRUMENTS </b></p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">1. Energy Swaps </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">2. Energy Options </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">3. Energy Exotic Options </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">4. Commodity Risk Management in Energy Project Finance </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9"><b>DEVELOPMENTS IN ENERGY MARKETS </b> </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">5. Risk and Regulatory Developments in US Energy Markets </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">6. The Oil Market </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">7. The Natural Gas Market </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">8. The Development of European Electricity Markets </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">9. Retail Energy Transactions in the US - Valuation, Risk and Supply </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">10. Dealing with Emissions </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9"><b>RISK MEASUREMENT AND REPORTING </b> </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">11. VAR, Stress Testing and Supplementary Methodologies: Uses and Constraints in Power and Energy Portfolio Risk Management </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">12. Credit Risk in Power and Gas Markets </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">13. Accounting vs. Economics: Not Always a Perfect Match </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9"><b>TOOLS FOR RISK ANALYSIS </b></p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">14. Power Forward Curves </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">15. Arbitrage-Free Valuation of Energy Derivatives </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">16. Volatility in Energy Prices </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">17. Correlation in Crude Oil and Natural Gas Markets </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9"><b>REAL OPTIONS </b></p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">18. Real Options </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 9">19. Gas Storage Management </p> <p class="contents_expanded" style="margin-top: 9; margin-bottom: 16">20. Valuation and Risk Management of Physical Assets </td> </tr> </table> </td> </tr> </table> </td> <td width="50%" valign="top" class="body"> <p class="body_expanded">Now in its third edition, this edited collection is the essential text on energy markets, including world oil, natural gas and electricity markets. Every one of its chapters is sophisticated, insightful and very well written. What is more, they fit seamlessly together to form an integrated whole. The book is divided into five sections: <p class="body_expanded"><img border="0" src="../images/bullet.gif" width="20" height="10">Energy Instruments<p class="bullet"> <img border="0" src="../images/bullet.gif" width="20" height="10">Developments in Energy Markets<p class="bullet"> <img border="0" src="../images/bullet.gif" width="20" height="10">Risk Measurement and Reporting<p class="bullet"> <img border="0" src="../images/bullet.gif" width="20" height="10">Tools for Risk Analysis<p class="bullet"> <img border="0" src="../images/bullet.gif" width="20" height="10">Real Options<p class="body_expanded">Learn of regulatory and legal developments. Explore competing models for forward curve dynamics. Confront the practical challenges of energy project finance. Implement VaR with incomplete market information. Assess credit and liquidity risks. Adapt arbitrage-free pricing and covariance modeling techniques. Understand US, UK and IASC accounting practices. What is exciting about this book is its depth, sophistication and abundance of practical insights. </p> <p class="body_expanded">Managing Energy Price Risk is essential reading for market participants. Because it assumes some knowledge, people who are newer to the industry should read Fusaro (<a href="../titles/fusaro_p_(1998).htm">1998</a>) before advancing to this text. <b>[Review based on the second edition.]</b></p> <p align="center" class="body"> </p> </td> </tr> <tr> <td width="50%" valign="bottom" class="body"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table9"> <tr> <td width="100%"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td></tr> </table> </td> </tr> </table> <div align="left"> <table border="0" cellpadding="6" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" bgcolor="#FFFFCC" id="table10"> <tr> <td width="50%" bgcolor="#CCCCFF" align="center" valign="top"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td><td width="100%" align="center"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" bgcolor="#FFFFCC" id="table11"> <tr> <td> <p class="body" style="margin-bottom: 6"><b><font color="#333366" size="3">For related books, see sections:</font></b></p> <p class="bullet" style="margin-top: 4; margin-bottom: 4"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/financial_engineering_energy_power.htm">Financial Engineering - Energy & Power</a></p> <p class="bullet" style="margin-top: 4; margin-bottom: 4"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/markets_industries_energy_power.htm">Markets - Energy & Power</a></td> </tr> </table> </td> </tr> </table> </div> </td> <td>  </td> </tr> </table>  <table border="0" style="border-collapse: collapse" width="100%" cellpadding="0" id="table1" bgcolor="#FFFFFF"> <tr> <td colspan="2" height="12"> <p style="margin-top: 0"> </td> </tr> <tr> <td align="right"> <p align="left" style="margin-bottom: 2px"> <a target="_top" href="http://www.riskexpertise.com/link/advertising.htm"> <font size="1" color="#000000" face="Arial">Ads by Contingency Analysis.</font></a></td> <td align="left"> <p align="right" style="margin-bottom: 2px"> <a target="_top" href="http://www.riskexpertise.com/link/advertising.htm"> <font size="1" color="#000000" face="Arial">Advertise on this site.</font></a></td> </tr> <tr> <td align="center" colspan="2">  <iframe src="http://servedbyadbutler.com/adserve/;ID=147917;size=300x250;setID=93136;type=iframe" allowtransparency="true" background-color="transparent" style="margin: 0px; padding: 0px; border-width: 0px" width="300" height="250" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"> <![if lt IE 4]> <script src="http://servedbyadbutler.com/adserve/;ID=147917;size=300x250;setID=93136;type=js" type="text/javascript"> </script> <noscript> <a href="http://servedbyadbutler.com/go2/;ID=147917;size=300x250;setID=93136"> <img src="http://servedbyadbutler.com/adserve/;ID=147917;size=300x250;setID=93136;type=img" border="0" height="250" width="300" alt=""></a> </noscript><![endif]> </iframe>   </td> </tr> </table> <p align="center" style="margin-top: 20"> <map name="FPMap0_I1"> <area href="http://www.riskbook.com" shape="rect" coords="0, 0, 184, 29" target="_top"></map> <img border="0" src="../images/open_book_riskbook.gif" usemap="#FPMap0_I1" width="185" height="30"></p> <p class="a" align="center"><font face="Arial" size="2"><a href="../main/disclaimer.htm">disclaimer</a></font></p> <p class="a" align="center"><span class="verdana10">website:</span> <a target="_top" href="http://www.contingencyanalysis.com"> <font size="2" face="Arial">http://www.contingencyanalysis.com</font></a><br> <span class="verdana10">books direct link:</span> <a target="_top" href="http://www.riskbook.com"><font size="2" face="Arial">http://www.riskbook.com</font></a><br> copyright <font face="Times New Roman">©</font> Contingency Analysis, 1996 - current</p> <p class="a" align="center"><map name="FPMap1_I1"> <area target="_top" href="http://www.contingencyanalysis.com" shape="rect" coords="0, 0, 240, 88"> </map><img border="0" src="../images/logo_book_white.gif" usemap="#FPMap1_I1" width="241" height="89"></p>  </body>