Article Archive

The Consilience Energy Advisory Group – previously published articles

Oil Markets Sunday Telegraph Feb-14 Give the Oil Market the Regulation it Needs: Liz Bossley Well-meaning regulation of markets is making life harder for oil companies looking to manage their oil price risk.
Emissions Trading Petroleum Review Feb-14 Reducing the cost of compliance – Use of International Credits in the EU ETS On 8th November 2013 the European Parliament and the Council adopted new rules, which at last clarified how many international credits from global carbon reduction projects can be used for compliance under the EU Emissions Trading Scheme (EU ETS), ending months of uncertainty in the European market
Oil Markets Oxfor Energy Forum Nov-13 Motive, Means, and Opportunity When the European Commission (EC)
swooped, like the SAS, into the offi ces
of Shell, BP, Statoil, and Platts (the
price reporting agency), on 14 May this
year looking for evidence of manipulation
of Platts prices, it seemed as if a
major overhaul of the oil market, not
just of oil price reporting, might be in
the offi ng
Oil Markets OilVoice Jul-13 The Hunt for WMDs in the Oil Price Process London, 5th July, 2013. The EC raid on the offices of BP, Shell and Statoil on May 14th seeking evidence of oil price manipulation has created a level of consternation not seen since the hunt for weapons of mass destruction (WMDs) in Iraq. If the WMDs had been there they would probably have been found. The difference with the search for evidence of oil price fixing is that, if it is there, it will be very difficult to recognise. If the evidence does not actually exist, it would be easy to mistake the actions of traders going about their lawful, if complex, business for market abuse.
Oil Markets Petroleum Review 16/04/2013 Pay Attention – The Oil Market is Changing It is an oft quoted, but difficult to verify, statistic that the international Brent benchmark price sets the value of about two thirds of global oil production- about 55-60 million b/d
Oil Markets IOSCO Mar-12 Consilience’s response to IOSCO Report on PRA Principles In October 2011 Liz Bossley of Consilience and Dr John Gault, at the request of IOSCO, the IEF, the IEA and OPEC, prepared a report for submission to the G20. The subject of the report was the activities of price reporting agencies in the oil market.
Emissions Trading Hart Fuel Magazine Jun-12 NAMA: Nationally Appropriate Mitigating Action or Nationally Achievable Mitigating Action? In October 2011 Liz Bossley of Consilience and Dr John Gault, at the request of IOSCO, the IEF, the IEA and OPEC, prepared a report for submission to the G20. The subject of the report was the activities of price reporting agencies in the oil market.
Oil Markets The FT 12/04/2012 Oil markets should heed Libor lessons Five years ago, the word “libor” sparked a yawn from investors and journalists. For back then, the process for setting these benchmark interest rates looked arcane, if not dull
Oil Markets Thomson Reuters 28/03/2012 Regulator stalks physical oil markets: Kemp A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines.” So said nineteenth century American essayist Ralph Waldo Emerson.Even allowing for a little sensible inconsistency, it is hard to reconcile the contrasting approaches to financial and physical oil market regulation set out in recent speeches and articles by CFTC Commissioner Scott O’Malia and Liz Bossley, chief executive of the Consilience Energy Advisory Group.
Oil Markets Oxford Energy Forum Feb-12 Oil Price Benchmarks in International Trade The Brent Benchmark is reputed to determin the price of about two-thirds of oil traded globally
Emissions Trading Carbon Market Europe 11/02/2011 The Road to South Africa International negotiators may wish to consider a new
idea for a global climate deal starting in 2013
Emissions Trading Joint Implementation Quarterly Dec-10 Thinking Out of the Box Despite the progress represented
by the Cancun Agreements, the
goal of meaningful, legally binding
caps that include the world’s
biggest Annex I and non-Annex I
emitters remains elusive.
Emissions Trading Blue Skies China 09/04/2010 Streamlined CDM could deliver Copenhagen targets A streamlined Clean Development Mechanism
(CDM) could provide the means for developing
nations to deliver their promised carbon dioxide
emission cuts, according to London-based energy
consultancy Consilience Energy Advisory Group
Emissions Trading Commodities Now 07/04/2010 Bonn Climate Working Group Has a Deal Within its Reach After the disappointing meeting in Copenhagen, the Consilience Energy Advisory Group sees a mandatory quota of
green projects for developing countries as a stepping stone to agreement that can be tested at the working session
due to take place in Bonn, Germany 9-11 April.
Emissions Trading Energy Institute Yearbook and Directory 2009 03/11/2009 Liz Bossley of CEAG explains how Emissions trading is here to stay After years of planning and discussion, the first commitment period of the Kyoto Protocol – 2008 to 2012 – is at last underway and, despite acrimonious international debate about its future, the cap-and-trade schemes it has spawned are not going to go away.
Emissions Trading Carbon Market Europe 16/10/2009 The Dark just Before the Dawn After Bangkok, the chances of deadlock at the Copenhagen meeting in December are high because the positions of the ‘big three’- China, India and the U.S.A. – remain firmly entrenched. The USA will not agree a UN cap unless the major developing countries agree to limit their emissions. China and India are highly unlikely to sign up for UNFCCC cap that may limit their economic growth
Emissions Trading Carbon Market Europe 16/10/2009 Point Carbon Guest Commentary by Liz Bossley “The dark before the dawn”. After last week’s UN meeting in Bangkok, the chances of deadlock over a climate deal at the Copenhagen summit in December are high because the positions of the ‘big three’ – China, India and the US – remain firmly entrenched.
Emissions Trading City of London 15/10/2008 UK Emissions Policy Options The purpose of the report is to inform the input of CoL’s representatives to a range of high level studies that aim to ensure that London maintains its place as a world leading financial services centre. It sets the context and describes the opportunities for London arising from market developments in emissions trading and the related emerging climate markets.
Emissions Trading S&I Review 12/09/2008 Liz Bossley of CEAG explains how investors can get involved in emissions trading Clean, Green, Money Machine The market in CO2 emissions is growing exponentially. From zero in 2003, the measurable market is expected to turnover more than €40 billion this year. Admittedly, compared with the bond market, for example, this is unimpressive, but the growth potentially is exciting.
Emissions Trading Securities and Investment Review Sep-08 Clean energy special: The big clean-up The market in CO2 emissions is growing exponentially. From zero in 2003 the measurable market is expected to turn over more than € 40 billion this year. Compared with, say, the bond market this is unimpressive, but the growth potential is exciting
Emissions Trading The Australian 04/08/2008 Garnaut stance threatens climate talks GLOBAL climate change negotiations will collapse in the same way the Doha trade talks failed last week if Ross Garnaut’s view that there is no way forward without China and India is adopted, European emissions trading expert Liz Bossley has warned.
Emissions Trading Carbon Market Europe 18/07/2008 The EUA- CER Price Differential The testing of the CITL-ITL link scheduled for Friday is cause for one cheer at least. Anything that takes us closer to allowing physical delivery of CERs and EUAs into European registry accounts and the restoration of the under-nourished spot market is welcome.
Emissions Trading The Australian Financial Review 16/05/2008 Piper playing emissions tune Piper Alderman’s long-held relationship with the resources industry is providing the impetus to build a complementary emissions trading scheme practice, with the assistance of an external consultant from Europe.
Emissions Trading Mees 07/04/2008 Time is Running Short for a Post-Kyoto Protocol Deal Instead of trying to force rapidly developing economies such as China, India and South Korea to accept a cap on their greenhouse gas emissions from 2013, the UN negotiators should be pushing for such countries to meet a quota of green development projects.  These economies are going to grow regardless of any attempts to constrain them: it may be more realistic to incentivise them to expand in the most environmentally friendly way possible. Furthermore, regulatory restrictions placed on the use of credits from green projects in developing countries are skewing the economics of mitigating climate change at least cost.  Liz Bossley of CEAG Ltd examines the issues to be resolved before the December 2009 Meeting of Parties to the Kyoto Protocol in Copenhagen and considers a possible way to break the deadlock.
Emissions Trading Point Carbon 14/12/2007 Auctioning and EU-wide cap in commission proposal for ETS review The European commission will in January propose that in the third trading period of the EU emissions trading scheme (ETS) commencing in 2013, around two-thirds of all CO2 allowances must be auctioned.
Emissions Trading Associated Press of Pakistan 13/12/2007 China, India and South Korea Should Reject Kyoto Emissions Caps, Consultant Says China, India and South Korea should reject calls to agree to caps on emissions through the Kyoto Protocol because domestic carbon trading systems would be more effective, a UK-based energy trading consultant said.
Emissions Trading Executive Carbon Briefing 12/12/2007 Sydney, Australia: Executive Carbon Briefing On 12th December 2007 Liz Bossley took part in an interactive Executive Carbon Briefing hosted by law firm Piper Alderman on the lessons Australian companies can learn from the world’s first emissions trading scheme operating in Europe.
Emissions Trading Bloomberg.com 12/12/2007 UK expert promotes carbon-trading over carbon tax MARK COLVIN: Whatever the details hammered out in Bali, the Australian Government has already committed itself to set up a carbon trading scheme by 2010 and Kevin Rudd’s adviser Ross Garnaut says that is ambitious but achievable.
 their own control.
Emissions Trading Oxford Energy Forum Magazine 09/11/2007 Liz Bossley describes the background to Bali High emissions caps for China, India and South Korea would be worse than no caps at all. Liz Bossley suggests a compromise alternative to break an expected stalemate in Bali.
Emissions Trading Taipei Times 02/11/2007 Activists push for carbon trading market Article referring to Liz Bossley’s speech in Taiwan at the ‘GHG Reduction Strategies and Management Practices in the Energy’ Sector conference in October 2007.
Oil Markets Energy Compass 29/06/2007 Rethinking North Sea trade Cash made in the Platts window of the 21 day Brent-Forties-Oseberg-Ekofisk (BFOE) contract, which underpins dated Brent assessments has dried up since the pricing service decided to impose a minimm standard of 37º API gravity and 0.6% sulfur for Forties crude oil cargoes deliverable into the contract.
Oil Markets Oil Voice 26/06/2007 The Tail Wagging the Dog: Further Developments in the Brent Market In March 2007 OilVoice reported that the commencement of production from the Buzzard field through the Forties Pipeline System had led to a decline in the relative value of the Brent international oil marker price.
Oil Markets Petroleum Review 15/06/2007 The devil is in the detail Article quoting CEAG’s CEO Liz Bossley and CEAG’s book ‘Brent: A User’s Guide to the Future of the World Price Marker’.
Emissions Trading Oil, Gas & Energy Law Intelligence 15/06/2007 Production sharing contracts and CDM projects The Kyoto Protocol Clean Development Mechanism (‘CDM’) concept is a project funding mechanism that requires integration into the oil and gas legislation in those hydrocarbon producing countries who are signatories of the UN Framework Convention on Climate Change and who have already ratified the Kyoto Protocol, or who may do so in the future. The issue that has to be addressed is how Certified Emissions Reductions (‘CERs’) arising from Kyoto CDM projects should be handled under pre-existing PSC arrangements.
Oil Markets Oil Voice 27/03/2007 The Law of Unintended Consequences: A Change in the Value of Brent When the partners in the Buzzard field chose the Forties pipeline over the Flotta pipeline to bring their oil to market, little did they know as they compared the transportation tarriffs on offer that their decision would have consequences for the price of two thirds of the world’s oil.
Emissions Trading Global Carbon Emissions Monitor 08/03/2007 Kyoto pigeon comes home to roost Russia must be singled out as a potential threat to achieving a meaningful carbon price in the first Kyoto committment period.
Oil Markets Reuters 05/03/2007 North Sea Forties better crude marker than Urals-study Article quoting CEAG’s CEO Liz Bossley and CEAG’s book ‘Brent: A User’s Guide to the Future of the World Price Marker’.
Oil Markets Petroleum Intelligence Weekly 05/03/2007 Buzzard poses threat to BFO contract Article referring to CEAG’s 2007 book ‘Brent: A User’s Guide to the Future of the World Price Marker’.
Emissions Trading Petroleum Economist 05/03/2007 PM’s emissions trading report expected soon Article referring to CEAG’s second edition of its “Climate Change and Emissions Trading: what every business needs to know”.
Oil Markets Energy Compass 02/03/2007 Buzzard bites Article referring to CEAG’s 2007 book ‘Brent: A User’s Guide to the Future of the World Price Marker’.
Emissions Trading Petroleum Economist 15/01/2007 Green is the colour of money The White House will not ratify the Kyoto treaty unless China and India accept limits on carbon emissions. But the actions of US businesses and individual states are undermining that position.
Emissions Trading Petroleum Review 15/12/2006 Jumping on the emissions bandwagon Liz Bossley highlights the findings of a new CEAG report published by the City of London Corporation, which provides a template for local government schemes to tackle climate change based on European emissions allowances (EUAs) and set within the context of a retail emissions sector.
Emissions Trading PointCarbon.com 17/11/2006 Governments criticised of wrecking the market price through auctions Quoting CEAG CEO Liz Bossley.
Emissions Trading Petroleum Economist 14/07/2006 Carbon chaos The European Union’s Emissions Trading Scheme (EU ETS) was launched in 2005. This prototype scheme was designed to help the EU to comply with the Kyoto Protocol, which is due to be activated in 2008. It places a limit on the amount of carbon dioxide (CO,) installations can emit and obliges them to invest in greener technology, cut output, or buy allowances to cope with any excess.
Emissions Trading Platts 28/06/2006 A Precarious Peace in the Emissions Market Quoting CEAG’s report “A Precarious Peace in the Emissions Market”.
Emissions Trading ENDS Europe Daily 27/06/2006 ‘Rogue installations’ risk destabilising EU ETS Quoting CEAG. Full article at www.endseuropedaily.com
Emissions Trading PointCarbon 22/06/2006 CEAG calls for EC to clarify rules on suspended accounts Quoting CEAG’s CEO Liz Bossley and Chairman John Walmsley.
Emissions Trading Carbon Market Europe 15/05/2006 Reports of the death of the Phase 1 market are an exaggeration It was inevitable that installations and countries would over-estimate their emissions first time round. Hence the recent price collapse as the 2005 verifications emerge. The same will happen with the non-European Annex B countries in the 1st Kyoto commitment period.
Emissions Trading The Times of India 13/04/2006 Carbon as gold standard Oil analyst and emissions trading specialist Liz Bossley is CEO, the Consilience Energy Advisory Group, a firm that gives advice on energy markets. Also director of the London Climate Change Service Providers Group, Bossley tells Narayani Ganesh that any company that wants to compete effectively in the global energy market today needs to understand and adapt to the dynamics of this new era.
Power Markets Utility Week 20/01/2006 Power plays Customers who convert to flexible contracts must be prepared to manage energy price risk in the wholesale market.
Emissions Trading Petroleum Economist 15/01/2006 A tale of two cities: Kyoto and Montreal It was the best of meetings and it was the worst of meetings. The 11th Conference of Parties (COP 11) to the UN Framework Convention on Climate Change (UNFCCC) in Montreal and the first Meeting of Parties (MOP 1) to the now-ratified Kyoto Protocol broke up on 10 December having adopted 40 decisions. Arguably the greatest achievement of the 12-day meeting was to keep the door open for further talks despite the best efforts of the US and Saudi Arabia.
Emissions Trading climabrasil.blogspot.com 05/01/2006 ONU faz reunião para implementar Protocolo de Kyoto Written by Stuart Penson, quoting Liz Bossley. Full article at: http://climabrasil. blogspot.com/2006/02/ onu-faz-reunio-para-implementar_02.html
Emissions Trading Petroleum Economist 15/12/2005 Weighing up the options The first year of the European Union’s (EU) Emissions Trading Scheme (ETS) is drawing to a close. Emissions of greenhouse gases in 2005 are close to being verified and installations affected by the scheme are counting the cost of compliance.
Power Markets Petroleum Economist 15/11/2005 Let there be light The European Electricity Directive, like the Gas Directive of 1998, was updated in 2003 because of ‘significant shortcomings and possibilities for improving the functioning of the market’. Two years on, Liz Bossley, Richard Cockburn and Rob Kelvey consider the lack of progress towards a fully liberalised European market.
Natural Gas Markets Petroleum Economist 14/10/2005 Slow progress The European Gas Directive of 1988 was updated in 2003 because of “significant shortcomings and possibilities for improving the functioning of the market”. Two years on, Liz Bossley and Gavin Templeton consider whether the dream of the free and competitive movement of gas within the EU is a reality.
Emissions Trading PNOP Newsline 14/10/2005 Asia-Pacific Partnership: Complementing or Competing with Kyoto At the 12th ASEAN REgional Forum in Laos on 28 July the US, Australia, China, India, Japan and South Korea announced the creation of a new Asia-Pacific Partnership (APP) on clean development, energy security and climate change. These six countries accont for about 50% of global GHG emissions.
Emissions Trading New Scientist.com 16/09/2005 Clean energy special: The big clean-up Written by Ben Crystall, quoting Liz Bossley. Full article at: http://213. 175.205.216/ Published_Material/Archive/ctl/Edit/ mid/446/New/1.aspx
Oil Markets Petroleum Economist 15/09/2005 Securing the oil price Private individuals, as well as pension funds, mutual funds and other investors who cannot deal directly in the physical or derivative oil markets have in the past had to satisfy their appetite for oil price exposure by investing in oil-company shares. Oil Securities is seeking to change that with a new oil security.
Emissions Trading Middle East Economic Survey 12/08/2005 Asia-Pacific Partnership: Complementing Or Competing With Kyoto? At the 12th ASEAN Regional Forum in Laos on 28 July the US, Australia, China, India, Japan, and South Korea announced the creation of a new Asia-Pacific Partnership (APP) on clean development, energy security and climate change. These six countries account for about 50% of global greenhouse gas (GHG) emissions. The vision statement of the APP says “the partnership will collaborate to promote and create an enabling environment for the development, diffusion, deployment and transfer of existing and emerging cost-effective, cleaner technologies and practices, through concrete and substantial cooperation so as to achieve practical results.” Full article at: http://www.mees.com/ postedarticles/oped/v48n32-5OD01.htm
Emissions Trading Petroleum Economist 15/07/2005 Defend or attack IPCC is convinced the climate is heating up and, consequently, extreme weather events will become the norm. But will it be better in the long run to defend ourselves against climate change and its consequences or to attack its causes?
Emissions Trading Petroleum Economist 15/04/2005 A green light for emissions trade February saw the entry into force of the Kyoto Protocol and the delivery of EU emissions allowances into national registries, paving the way for the first spot trades in the CO2 market. Liz Bossley talks to some of the executive committee members of LCCS about the development of emissions trading.
Emissions Trading Middle East Economic Survey 21/03/2005 Emissions Trading: If you can’t beat them, join them? The Kyoto Protocol entered into full force and effect on 16 February 2005, ironically on the same date as the annual Institute for Energy dinner in London. The energy sector is cited as the biggest offender in the production of greenhouse gases and is the sector that will, arguably, suffer most from legislation to arrest global warming. Liz Bossley CEO of energy markets consultancy firm the Consilience Energy Advisory Group Ltd (CEAG) examines the evolving emissions market. Ms Bossley is also a member of the executive committee of the London Climate Change Services group.
Oil Markets Oil, Gas & Energy Law Intelligence 15/03/2005 Production sharing contracts: What is market price? PSCs, or Production Sharing Agreements (PSAs), are a familiar tool of hydrocarbon producing countries to gain overseas investment in the oil and gas sector. The basic concept is that overseas investors provide the cash to explore and develop licensed areas and, once projects are onstream, the host government takes a share of the proceeds either in cash or in kind; usually some combination of both. The host government’s interests are usually represented by a national oil company (NOC), who, in some cases, have an equity interest in licensed acreage.
Oil Markets Petroleum Economist 15/03/2005 To hedge or not to hedge A successful hedge policy only achieves the objective of ironing out oil price and cash-flow fluctuations if it is applied consistently from year to year. Having lost on hedges in 2004, oil companies run the risk of losing from a subsequent oil-price fall if they do not hedge future production.
Oil Taxation Oil, Gas & Energy Law Intelligence 14/03/2005 Production sharing contracts: What is market price? PSCs, or Production Sharing Agreements (PSAs), are a familiar tool of hydrocarbon producing countries to gain overseas investment in the oil and gas sector. The basic concept is that overseas investors provide the cash to explore and develop licensed areas and, once projects are onstream, the host government takes a share of the proceeds either in cash or in kind; usually some combination of both. The host government’s interests are usually represented by a national oil company (NOC), who, in some cases, have an equity interest in licensed acreage.
Oil Markets Petroleum Review 15/02/2005 A taxing change From January 1 2005, the UK Oil Taxation Office (OTO) has changed the way in which it calculates the value of the Tax Reference Price (TRP). The TRP is the price at which equity producers of UKCS crude oil are taxed on the oil they sell from UK oil fields. The tax rates that apply to UKCS production can be anything from 0-70% depending on the vintage and profitability of the field in question. This did not change on 1 January. What has changed is the price to which this marginal rate is applied.
Oil Taxation Petroleum Review 14/02/2005 A taxing change From January 1 2005, the UK Oil Taxation Office (OTO) has changed the way in which it calculates the value of the Tax Reference Price (TRP). The TRP is the price at which equity producers of UKCS crude oil are taxed on the oil they sell from UK oil fields. The tax rates that apply to UKCS production can be anything from 0-70% depending on the vintage and profitability of the field in question. This did not change on 1 January. What has changed is the price to which this marginal rate is applied.
Power Markets Petroleum Economist 15/12/2004 Unification approaches Betta, scheduled for completion by April 2005, will integrate the Scottish, English and Welsh electricity markets. Richard Cockburn and Liz Bossley of CEAG consider the implications.
Oil Markets Petroleum Ecomomist 15/10/2004 The devil is in the data While rising oil prices have been grabbing the headlines, the cost of shipping oil has also been increasing sharply. Liz Bossley examines escalating costs and volatility in the tanker market and looks at the largely ignored shipping data that tracks vessels and accounts for the rising price trend.
Emissions Trading Petroleum Economist 17/09/2004 A fragmented market The details of the European Union’s (EU) Emissions Trading Scheme (ETS) are gradually crystallising, as the 1 January 2005 start-up approaches. Forward trading is under way, but three sets of legal instrument are being traded, threatening to split liquidity in a fragmented market.
Oil Markets Petroleum Argus 15/09/2004 Review of “Project Finance Using the Forward Oil Curve” report. Review of “Project Finance Using the Forward Oil Curve” report.
Oil Markets Middle East Economic Survey 15/09/2004 Review of “Project Finance Using the Forward Oil Curve” report. Review of “Project Finance Using the Forward Oil Curve” report.
Emissions Trading Argus Emissions 15/09/2004 The potential debut of ’emissions spinning’ Energy firms used to exploit a tax loophole in the North Sea offshore sector to profitable effect. The same sector faces another potential loophole under the EU emissions trading scheme (EU ETS).
Oil Markets N/A 16/08/2004 Project Finance Using the Forward Oil Curve: Project Finance Using the Forward Oil Curve:
Oil Markets Petroleum Economist 13/08/2004 The growth of a mighty oak Acorn Oil & Gas secured $7.5m to fund pre-development work on the Cragganmore project and appraisal of the Mallory discovery, in July. Liz Bossley talks to Grodon Stein, Acorn’s Finance Director, about the problems the new generation of innovative, small oil companies encounter in funding projects.
Oil Markets Petroleum Economist 15/07/2004 Escalator ups and downs As production from North Sea oilfields declines, a question mark hangs over the quality of oil that will be delivered through the major oil pipelines. Liz Bossley investigates one possible solution to the problem.
Oil Markets Petroleum Review 15/06/2004 Looking forward to project financing The 1990s saw a frenzy of merger and acquisition (M&A) activity in the oil and gas exploration and production (E&P) sector. There were two particular consequences of this trend -a large number of high quality executives found themselves without jobs, and a range of potentially economic projects fell below the radar screen of the new, giant companies.
Trading and Corporate Strategy Petroleum Review 15/06/2004 Looking forward to project financing The 1990s saw a frenzy of merger and acquisition (M&A) activity in the oil and gas exploration and production (E&P) sector. There were two particular consequences of this trend -a large number of high quality executives found themselves without jobs, and a range of potentially economic projects fell below the radar screen of the new, giant companies.
Natural Gas Markets Petroleum Economist 14/06/2004 A wobble in the Wobbe While the UK gas industry has been preoccupied with replacing the declining volume of domestic production, the safety characteristics of new supply options has taken a back seat. Liz Bossley talks to Kelvin Beer, of Deloitte Petroleum Services, about the major challenge presented by diverse imported gas quality in the race to secure future supply for the UK market.
Natural Gas Markets Petroleum Review 14/06/2004 Looking forward to project financing The 1990s saw a frenzy of merger and acquisition (M&A) activity in the oil and gas exploration and production (E&P) sector. There were two particular consequences of this trend -a large number of high quality executives found themselves without jobs, and a range of potentially economic projects fell below the radar screen of the new, giant companies.
Oil Markets Pipeline 15/05/2004 European Emissions Trading Since the Rio Earth Summit in 1992, experts have been warning about the imminent need for companies to comply with global agreements to reduce greenhouse gas (GHG) emissions. However, 12 years later, most companies have managed satisfactorily without doing anything.
Oil Markets Petroleum Economist 14/05/2004 Oil in Produced Water Oil and gas companies scrambling to put their trading arrangements in place for the European Emissions Trading Scheme now have a new trading scheme and a new set of acronyms to contend with: trading oil in produced water (01PW)
Power Markets Pipeline 14/05/2004 European Emissions Trading Since the Rio Earth Summit in 1992, experts have been warning about the imminent need for companies to comply with global agreements to reduce greenhouse gas (GHG) emissions. However, 12 years later, most companies have managed satisfactorily without doing anything.
Natural Gas Markets Pipeline 14/05/2004 European Emissions Trading Since the Rio Earth Summit in 1992, experts have been warning about the imminent need for companies to comply with global agreements to reduce greenhouse gas (GHG) emissions. However, 12 years later, most companies have managed satisfactorily without doing anything.
Emissions Trading Pipeline 14/05/2004 European Emissions Trading Since the Rio Earth Summit in 1992, experts have been warning about the imminent need for companies to comply with global agreements to reduce greenhouse gas (GHG) emissions. However, 12 years later, most companies have managed satisfactorily without doing anything.
Emissions Trading Petroleum Economist 05/05/2004 Oil in Produced Water Oil and gas companies scrambling to put their trading arrangements in place for the European Emissions Trading Scheme now have a new trading scheme and a new set of acronyms to contend with: trading oil in produced water (01PW).
Natural Gas Markets Transporting Gas 17/02/2004 IP Week 2004: Transporting Gas Liz Bossley spoke at the Institute of Energy Gas seminar on 17th February on the subject of Changing Trade Patterns.
Oil Markets Petroleum Economist 16/02/2004 Facing Facts While power and gas traders have established a base camp in the foothills of the emissions learning curve, most oil traders are still unaware of the mountain they must climb before January 2005. Liz Bossley examines the significance of the European Emissions Trading Scheme for oil traders. (Petroleum Economist, February 2004)
Emissions Trading Petroleum Economist 13/02/2004 Facing Facts While power and gas traders have established a base camp in the foothills of the emissions learning curve, most oil traders are still unaware of the mountain they must climb before January 2005. Liz Bossley examines the significance of the European Emissions Trading Scheme for oil traders.
Weather Trading Petroleum Economist 15/01/2004 A fair wind After Enron, the pioneer of the weather derivatives, sank without a trace activity in this emerging market was becalmed. But now, two years later, there is deal evidence that weather derivatives are re- emerging from the doldrums. Liz Bossley investigates.
Power Markets Petroleum Economist 15/12/2003 Consolidating a Power Base As the European Electricity Directive grinds slowly towards one open competitive market across Europe, Liz Bossley looks at the development of trading in the range of disparate European electricity exchanges that have evolved since the 1966 directive was agreed.
Energy Market Exchanges Petroleum Economist 15/12/2003 Consolidating a Power Base As the European Electricity Directive grinds slowly towards one open competitive market across Europe, Liz Bossley looks at the development of trading in the range of disparate European electricity exchanges that have evolved since the 1966 directive was agreed.
oal Petroleum Economist 15/10/2003 New Methods in an Old Market The world coal industry is witnessing the steady development of an open over-the counter (OTC) market, centred in Europe. Traditionally, international coal trade consists of long-term bilateral deals. The OTC market is still at a fledgling stage, but already has an active financial swaps market to complement the physical market. Liz Bossley and Sam Murray, of CEAG, report.
Power Markets Petroleum Economist 15/08/2003 Striving for harmony A new European Electricity Directive (EED) will replace its 1996 predecessor shortly, reinforcing the intentions of the earlier directive. Report by Liz Bossley and Sam Murray of CEAG.
Energy Market Regulation Petroleum Economist 15/08/2003 Striving for harmony A new European Electricity Directive (EED) will replace its 1996 predecessor shortly, reinforcing the intentions of the earlier directive. Report by Liz Bossley and Sam Murray of CEAG.
Power Markets Petroleum Economist 14/07/2003 Emissions trading and the green generation While European politicians continue to debate the mechanics of complying with emissions-reduction targets under the Kyoto Protocol, a market in European emissions has already started to trade. Liz Bossley looks at its development.
Emissions Trading Petroleum Economist 14/07/2003 Emissions trading and the green generation While European politicians continue to debate the mechanics of complying with emissions-reduction targets under the Kyoto Protocol, a market in European emissions has already started to trade. Liz Bossley looks at its development.
Energy Market Regulation Petroleum Economist 14/07/2003 Emissions trading and the green generation While European politicians continue to debate the mechanics of complying with emissions-reduction targets under the Kyoto Protocol, a market in European emissions has already started to trade. Liz Bossley looks at its development.
Oil Markets Petroleum Economist 16/06/2003 Mulling the cost of the exploration The oil industry, returning from a war footing to business as usual, has time to consider the poor exploration results of 2002. Liz Bossley considers whether drilling for hydrocarbons is the most cost-effective option, when reserves can be bought more cheaply in the market through companies or assets.
rading and Corporate Strategy Petroleum Economist 16/06/2003 Mulling the cost of the exploration The oil industry, returning from a war footing to business as usual, has time to consider the poor exploration results of 2002. Liz Bossley considers whether drilling for hydrocarbons is the most cost-effective option, when reserves can be bought more cheaply in the market through companies or assets.
Oil Markets Petroleum Economist 15/04/2003 Battling benchmark distortions Falling production from the UK North Sea’s Brent oilfield had left the pricing marker grade exposed to market squeezes. Nine months after the 21-day Brent/Forties/Oseberg option contract was conceived by BP and Platts, Liz Bossley investigates how the new baby has survived its gestation period.
Oil Markets Oxford Energy Forum 14/02/2003 Liz Bossley reveals a bloodless coup in the Brent market. Liz Bossley reveals a bloodless coup in the Brent market.
Power Markets Petroleum Economist 14/02/2003 Market movements The UK gas and power industries have undergone another huge upheaval in the last year, trying to cope with the impact of changes in trading arrangements and the fallout from Enron. Against this background, the merger of National Grid and Transco has been accepted calmly by a market reeling from change. Liz Bossley and Jennifer Anderson of CEAG analyse the impact of the new regime.
Natural Gas Markets Petroleum Economist 14/02/2003 He who builds the pipeline calls the tune It is widely forecast that the UK will suffer a shortfall in gas supply by the middle of this decade. The race is on to build the pipeline infrastructure that will import European gas to meet demand. Liz Bossley and Jennifer Anderson of CEAG consider the pipeline plans and whether the gas will arrive in time.
Emissions Trading Petroleum Economist 16/12/2002 Lessons for Kyoto process While the Kyoto process inches forward and the EU’s Emissions Trading Scheme awaits approval in detail by its member states, the UK Emissions Trading Scheme has been operating since April. Liz Bossley investigates the trading action in the UK two-thirds of the way through the first compliance period.
Energy Market Regulation Petroleum Economist 16/12/2002 Lessons for Kyoto process While the Kyoto process inches forward and the EU’s Emissions Trading Scheme awaits approval in detail by its member states, the UK Emissions Trading Scheme has been operating since April. Liz Bossley investigates the trading action in the UK two-thirds of the way through the first compliance period.
Oil Markets Petroleum Economist 14/10/2002 A hedge too far Last month, Petroleum Economist looked at work by the Société Générale equity research team quantifying major oil firms’ political risk, based on a risk-ranking database provided by HIS Energy Group. Given that any measurable index can, in theory, be traded, Liz Bossley examines the concept of trading political risk.
Trading and Corporate Strategy Petroleum Economist 14/10/2002 A hedge too far Last month, Petroleum Economist looked at work by the Société Générale equity research team quantifying major oil firms’ political risk, based on a risk-ranking database provided by HIS Energy Group. Given that any measurable index can, in theory, be traded, Liz Bossley examines the concept of trading political risk.
Energy Market Exchanges Petroleum Economist 16/09/2002 Ice spreads across Europe Despite the market turmoil following the demise of Enron, Ice’s business plan continues to crystallise. Liz Bossley talks to Stephanie Trabia, CEO of the exchange’s UK subsidiary, about the firm’s expansion plan.
Trading and Corporate Strategy Petroleum Economist 16/09/2002 Trading political risk If you can measure it, you can trade it. The maxim, often quoted by traders in connection with derivatives contracts in weather and global emissions, suggest political risk could eventually be traded.
Interviews, Miscellaneous Petroleum Economist 16/09/2002 Ice spreads across Europe Despite the market turmoil following the demise of Enron, Ice’s business plan continues to crystallise. Liz Bossley talks to Stephanie Trabia, CEO of the exchange’s UK subsidiary, about the firm’s expansion plan.
Oil Markets Pipeline 12/08/2002 Brent: a search for liquidity As physical Brent production dwindles, a new source of liquidity is needed to encourage traders back into the physical and forward Brent markets. Liz Bossley searches the Petroleum Services production database for a solution and examines some proposals.
Power Markets Petroleum Economist 15/07/2002 A catalogue of European Power In October 2001, a European Commission report pointed out that wholesale electricity trading markets “provide means of hedging the risks associated with market competition and variations in system balancing regimes. The structure and operation of wholesale markets can therefore provide a good indication of both the state of liberalisation and the potential for development”. Liz Bossley and Greta Jacobs examine the development of electricity exchanges across Europe.
Emissions Trading Petroleum Review 15/07/2002 The emissions market – a regulatory trade-off The draft EU Directive on emissions trading was the subject of the last session on the last day of a conference on greenhouse gas (GHG) emissions for the oil and gas industry in London in May 2002. This afterthought status is typical of the emerging emissions reduction industry. Far from needing a new direction, would-be emissions traders need a clearer idea of the eventual destination so that they can work out the best route for themselves, writes Liz Bossley.
Energy Market Regulation Petroleum Review 15/07/2002 The emissions market – a regulatory trade-off The draft EU Directive on emissions trading was the subject of the last session on the last day of a conference on greenhouse gas (GHG) emissions for the oil and gas industry in London in May 2002. This afterthought status is typical of the emerging emissions reduction industry. Far from needing a new direction, would-be emissions traders need a clearer idea of the eventual destination so that they can work out the best route for themselves, writes Liz Bossley.
Natural Gas Markets Argus 11/07/2002 European gas market faces “serious challenge” New analysis by Petroleum Services, the oil and gas division of Andersen UK, reveals that the equivalent of another Ormen Lange – the largest new gas development offshore Norway – needs to come on stream every year from 2007 just to maintain current UK continental shelf gas supply. The decline in supply to the UK presents “a serious challenge and a serious opportunity” to the west European gas industry, says Kelvin Beer, Petroleum Services gas consultant.
Energy Market Exchanges Argus 11/07/2002 Ice plans cleared gas products Online trading platform Intercontinental-Exchange (Ice) is on tract to launch its cleared gas trading services by the end of August, despite market rumours of delays, sources close to the exchange say.
Interviews, Miscellaneous Argus 11/07/2002 European gas market faces “serious challenge” New analysis by Petroleum Services, the oil and gas division of Andersen UK, reveals that the equivalent of another Ormen Lange – the largest new gas development offshore Norway – needs to come on stream every year from 2007 just to maintain current UK continental shelf gas supply. The decline in supply to the UK presents “a serious challenge and a serious opportunity” to the west European gas industry, says Kelvin Beer, Petroleum Services gas consultant.
Energy Market Exchanges Petroleum Economist 05/07/2002 A catalogue of European Power In October 2001, a European Commission report pointed out that wholesale electricity trading markets “provide means of hedging the risks associated with market competition and variations in system balancing regimes. The structure and operation of wholesale markets can therefore provide a good indication of both the state of liberalisation and the potential for development”. Liz Bossley and Greta Jacobs examine the development of electricity exchanges across Europe.
Power Markets Argus 27/06/2002 Trading power: science or art? A key question to emerge in the light of Enron’s demise is how the firm convinced people for so long that it had a formula for creating substantial value with no assets. Few outside the firm felt qualified to questions its experts and why they seemed able to find value in their complex trading models. Author: Liz Bossley.
Trading and Corporate Strategy Argus 27/06/2002 Trading power: science or art? A key question to emerge in the light of Enron’s demise is how the firm convinced people for so long that it had a formula for creating substantial value with no assets. Few outside the firm felt qualified to questions its experts and why they seemed able to find value in their complex trading models. Author: Liz Bossley.
Oil Markets Petroleum Economist 17/06/2002 Oil firms: don’t ditch hedging Oil price risk hedging with derivative products may be wrong for certain oil companies, but a failure to manage price risk actively could be a significant missed opportunity. Liz Bossley discusses hedge techniques in the management of company finances with John Walmsley, an energy consultant with oil company finance director and CEO experience.
Management of Trading Petroleum Economist 14/06/2002 Oil firms: don’t ditch hedging Oil price risk hedging with derivative products may be wrong for certain oil companies, but a failure to manage price risk actively could be a significant missed opportunity. Liz Bossley discusses hedge techniques in the management of company finances with John Walmsley, an energy consultant with oil company finance director and CEO experience.
Trading and Corporate Strategy Petroleum Economist 14/06/2002 Oil firms: don’t ditch hedging Oil price risk hedging with derivative products may be wrong for certain oil companies, but a failure to manage price risk actively could be a significant missed opportunity. Liz Bossley discusses hedge techniques in the management of company finances with John Walmsley, an energy consultant with oil company finance director and CEO experience.
Oil Trading Petroleum Economist 14/06/2002 Oil firms: don’t ditch hedging Oil price risk hedging with derivative products may be wrong for certain oil companies, but a failure to manage price risk actively could be a significant missed opportunity. Liz Bossley discusses hedge techniques in the management of company finances with John Walmsley, an energy consultant with oil company finance director and CEO experience.
Natural Gas Markets Petroleum Economist 15/04/2002 Checking the balance I called the New World into existence, to redress the balance of the Old, said the 19th Century poet George Canning. The New World of the UK’s liberalised gas market is proving difficult to balance and is set for further reform by the regulator. Liz Bossley investigates.
Energy Market Regulation Petroleum Economist 15/04/2002 Checking the balance I called the New World into existence, to redress the balance of the Old, said the 19th Century poet George Canning. The New World of the UK’s liberalised gas market is proving difficult to balance and is set for further reform by the regulator. Liz Bossley investigates.
Oil Markets Petroleum Economist 15/03/2002 Faites vos jeux In case we had forgotten that there are lies, damned lies and statistics, Enron has just proved it all over again. Even when numbers are reported to us clearly and accurately they still have the capability to mislead. Liz Bossley looks at the power and pitfalls of energy statistics.
Power Markets Petroleum Economist 15/03/2002 Faites vos jeux In case we had forgotten that there are lies, damned lies and statistics, Enron has just proved it all over again. Even when numbers are reported to us clearly and accurately they still have the capability to mislead. Liz Bossley looks at the power and pitfalls of energy statistics.
Natural Gas Markets Petroleum Economist 15/03/2002 Faites vos jeux In case we had forgotten that there are lies, damned lies and statistics, Enron has just proved it all over again. Even when numbers are reported to us clearly and accurately they still have the capability to mislead. Liz Bossley looks at the power and pitfalls of energy statistics.
Emissions Trading Petroleum Economist 15/03/2002 Faites vos jeux In case we had forgotten that there are lies, damned lies and statistics, Enron has just proved it all over again. Even when numbers are reported to us clearly and accurately they still have the capability to mislead. Liz Bossley looks at the power and pitfalls of energy statistics.
Weather Trading Petroleum Economist 15/03/2002 Faites vos jeux In case we had forgotten that there are lies, damned lies and statistics, Enron has just proved it all over again. Even when numbers are reported to us clearly and accurately they still have the capability to mislead. Liz Bossley looks at the power and pitfalls of energy statistics.
Emissions Trading Petroleum Economist 15/02/2002 UK launches emissions trading scheme On 25 February 2002, the UK Department of Food Environment and Rural Affairs (Defra) will be auctioning rights to share in a £215m fund to incentivise a cut in greenhouse gas emissions. Liz Bossley analyses what is likely to happen.
Energy Market Regulation Petroleum Economist 15/02/2002 UK launches emissions trading scheme On 25 February 2002, the UK Department of Food Environment and Rural Affairs (Defra) will be auctioning rights to share in a £215m fund to incentivise a cut in greenhouse gas emissions. Liz Bossley analyses what is likely to happen.
Energy Market Exchanges Petroleum Review 15/02/2002 Markets continue to squabble over territory When the aeroplanes crashed into the World Trade Centre, the last thing on anyone’s mind was the resulting impact on the energy business. Nevertheless, the events of 11 September 2001 proved a setback for the New York Mercantile Exchange (Nymex) in its private war with the Intercontinental Exchange (ICE), the then new owner of the International Petroleum Exchange (IPE). Liz Bossley reports.
Power Markets Petroleum Economist 14/12/2001 So far, so good at NordPool NordPool was an early pioneer of electricity market liberalisation. As surrounding countries catch up, Liz Bossley examines how the exchange is placed to face developing competition.
Energy Market Exchanges Petroleum Economist 14/12/2001 So far, so good at NordPool NordPool was an early pioneer of electricity market liberalisation. As surrounding countries catch up, Liz Bossley examines how the exchange is placed to face developing competition.
Power Markets Argus 29/11/2001 Neta: One man’s success, another’s nightmare It has been eight months since new electricity trading rules changed the UK power industry, and market players are waiting to see how it affects this winter’s trading. Settlement prices have calmed, but physical deliveries still shun the system. Are modifications working?
Energy Market Regulation Argus 29/11/2001 Neta: One man’s success, another’s nightmare It has been eight months since new electricity trading rules changed the UK power industry, and market players are waiting to see how it affects this winter’s trading. Settlement prices have calmed, but physical deliveries still shun the system. Are modifications working?
Power Markets Argus 15/11/2001 European electricity directive: boon or bind? Liberalisation has been called both a blessing and a curse. Some states quickly codified the electricity directive that Brussels approved as the way to prise open power markets. Other dragged their heels. Liz Bossley sorts the tortoises from the hares.
Energy Market Regulation Argus 15/11/2001 European electricity directive: boon or bind? Liberalisation has been called both a blessing and a curse. Some states quickly codified the electricity directive that Brussels approved as the way to prise open power markets. Other dragged their heels. Liz Bossley sorts the tortoises from the hares.
Natural Gas Markets Petroleum Economist 12/11/2001 Getting the pipes in tune Ireland is finding its place on the European gas map. The successful appraisal of the new Seven Heads gasfield, offshore Ireland, is another small, but positive, step towards an all-Ireland energy market based on natural gas, writes Liz Bossley.
Power Markets Petroleum Economist 14/09/2001 One cheer for the new gas trading arrangements On 1 October 1999, the new gas trading arrangements (NGTA) for the UK were introduced by the Office of Gas and Electricity Markets (Ofgem). On 21 July 2000 Ofgem published a review of the new arrangements. This is significant from two perspectives firstly, the UK is at the vanguard of the liberalisation of gas trading in Europe and can provide some signposts as to how that trade may develop; and, new electricity trading arrangements (Neta) are scheduled to be introduced in the UK in November, based on a similar model to NGTA. Liz Bossley reports.
Energy Market Regulation Petroleum Economist 14/09/2001 Powernext: More power to EdF The dominant position of Electricité de France (EdF) in the French electricity market is as likely to be a barrier to free trade in the case of the new electronic electricity exchange, Powernext, as it has been for the over-the-counter market, brokers and traders say.
Energy Market Exchanges Petroleum Economist 14/09/2001 Powernext: More power to EdF The dominant position of Electricité de France (EdF) in the French electricity market is as likely to be a barrier to free trade in the case of the new electronic electricity exchange, Powernext, as it has been for the over-the-counter market, brokers and traders say.
Energy Market Regulation Petroleum Economist 15/08/2001 Maybe trading hot air Following statements made by President Bush during his European tour, in June, it came as no surprise that the US refused to ratify the Kyoto Protocol at the seventh Conference of Parties, in Bonn in July 2001. Liz Bossley looks at the prospects for greenhouse gas emissions trading after all developed countries, except the US, agreed the Kyoto framework.
Emissions Trading Petroleum Economist 13/08/2001 Maybe trading hot air Following statements made by President Bush during his European tour, in June, it came as no surprise that the US refused to ratify the Kyoto Protocol at the seventh Conference of Parties, in Bonn in July 2001. Liz Bossley looks at the prospects for greenhouse gas emissions trading after all developed countries, except the US, agreed the Kyoto framework.
Oil Markets Petroleum Economist 16/07/2001 New Regime for traders The UK’s Financial Services Authority (FSA) published the “final” version of the Code of Market Conduct (COMC) on 30 April. This was closely followed by the Energy Market Participants Regime (EMP) – published on 5 June 2001 – at a time when the market was openly discussing a squeeze in the July Brent contract, reports Liz Bossley.
Power Markets Petroleum Economist 16/07/2001 New Regime for traders The UK’s Financial Services Authority (FSA) published the “final” version of the Code of Market Conduct (COMC) on 30 April. This was closely followed by the Energy Market Participants Regime (EMP) ­ published on 5 June 2001 ­ at a time when the market was openly discussing a squeeze in the July Brent contract, reports Liz Bossley.
Natural Gas Markets Petroleum Economist 16/07/2001 A one-pipe problem An investigation by the European Competition Commission into the operation of the Bacton-Zeebrugge gas Interconnector was announced in February 2001. Both the UK energy regulator, Ofgem, and Interconnector UK, the pipeline operator, have supplied information to the inquiry. The key issue, raised initially by the UK Department of Trade and Industry, is whether or not Interconnector trade is inflating UK gas prices. Author: Liz Bossley.
Natural Gas Markets Petroleum Economist 16/07/2001 New Regime for traders The UK’s Financial Services Authority (FSA) published the “final” version of the Code of Market Conduct (COMC) on 30 April. This was closely followed by the Energy Market Participants Regime (EMP) – published on 5 June 2001 – at a time when the market was openly discussing a squeeze in the July Brent contract, reports Liz Bossley.
Energy Market Regulation Petroleum Economist 16/07/2001 New Regime for traders The UK’s Financial Services Authority (FSA) published the “final” version of the Code of Market Conduct (COMC) on 30 April. This was closely followed by the Energy Market Participants Regime (EMP) – published on 5 June 2001 – at a time when the market was openly discussing a squeeze in the July Brent contract, reports Liz Bossley.
Energy Market Exchanges Petroleum Economist 16/07/2001 The Ice man cometh Intercontinental Exchange (ICE) says that, by 15 June 2001, valid acceptances of its offer to buy the International Petroleum Exchange (IPE) had been received for around 90% of the IPE’s share capital and that the offer is now unconditional in all respects.
Emissions Trading Petroleum Economist 13/07/2001 New Regime for traders The UK’s Financial Services Authority (FSA) published the “final” version of the Code of Market Conduct (COMC) on 30 April. This was closely followed by the Energy Market Participants Regime (EMP) – published on 5 June 2001 – at a time when the market was openly discussing a squeeze in the July Brent contract, reports Liz Bossley.
Energy Market Regulation Petroleum Economist 05/07/2001 A one-pipe problem An investigation by the European Competition Commission into the operation of the Bacton-Zeebrugge gas Interconnector was announced in February 2001. Both the UK energy regulator, Ofgem, and Interconnector UK, the pipeline operator, have supplied information to the inquiry. The key issue, raised initially by the UK Department of Trade and Industry, is whether or not Interconnector trade is inflating UK gas prices. Author: Liz Bossley.
Power Markets Petroleum Economist 15/06/2001 Turning up the heat Love it or hate it (and there seems to be no middle ground), there is no arguing that, two months after launch of the New Electricity Trading Arrangements (Neta), temperatures are running high in the UK power industry. Author: Liz Bossley
Energy Market Regulation Petroleum Economist 15/06/2001 Turning up the heat Love it or hate it (and there seems to be no middle ground), there is no arguing that, two months after launch of the New Electricity Trading Arrangements (Neta), temperatures are running high in the UK power industry. Author: Liz Bossley
Energy Market Exchanges Petroleum Economist 15/06/2001 Ice reels in the IPE The IPE has accepted a friendly, all-share takeover offer from Ice. But is it a love-match or a marriage of convenience? On the face of it, this looks like a good deal for the IPE, but there are risks attached and regulatory questions, and Nymex may be looking to spoil the party, writes Liz Bossley.
Energy Market Exchanges Argus 04/06/2001 Head of Ice outlines plans to Argus The range of estimated values of shares in the Intercontinental Exchange (Ice) is extremely wide. These shares are the currency on offer to buy the IPE, and the wide range raises doubt over the value of the deal. Last week, Argus asked the head of Ice, Jeffrey Sprecher, what it is really worth.
Interviews, Miscellaneous Petroleum Argus 04/06/2001 Head of Ice outlines plans to Argus The range of estimated values of shares in the Intercontinental Exchange (Ice) is extremely wide. These shares are the currency on offer to buy the IPE, and the wide range raises doubt over the value of the deal. Last week, Argus asked the head of Ice, Jeffrey Sprecher, what it is really worth.
Energy Market Regulation Petroleum Economist 15/05/2001 Neta launched to apathy The long-awaited New Electricity Trading Arrangements (Neta) for England and Wales went live on 27 March. The lights are still on, so it must be working. But electricity traders remain sceptical and are dabbling cautiously in the array of new trading instruments at their disposal. Author: Liz Bossley.
Oil Markets Petroleum Economist 14/05/2001 Pipeline capacity stretched Changes to environmental legislation may be about to turn the North Sea cost-base and the pattern of North Sea trade on their head. The Norwegian pollution control authority’s requirement that volatile organic compounds be recovered from shuttle tankers loading at offshore fields has prompted discussions between Norwegian operators and the Sullom Voe oil terminal in the Shetland Isles to reroute Statfjord crude through Brent Blend. Liz Bossley reports
Power Markets Petroleum Economist 14/05/2001 Neta launched to apathy The long-awaited New Electricity Trading Arrangements (Neta) for England and Wales went live on 27 March. The lights are still on, so it must be working. But electricity traders remain sceptical and are dabbling cautiously in the array of new trading instruments at their disposal. Author: Liz Bossley.
Oil Trading Petroleum Economist 14/05/2001 Pipeline capacity stretched Changes to environmental legislation may be about to turn the North Sea cost-base and the pattern of North Sea trade on their head. The Norwegian pollution control authority’s requirement that volatile organic compounds be recovered from shuttle tankers loading at offshore fields has prompted discussions between Norwegian operators and the Sullom Voe oil terminal in the Shetland Isles to reroute Statfjord crude through Brent Blend. Liz Bossley reports.
Energy Market Regulation Petroleum Economist 04/05/2001 Pipeline capacity stretched Changes to environmental legislation may be about to turn the North Sea cost-base and the pattern of North Sea trade on their head. The Norwegian pollution control authority’s requirement that volatile organic compounds be recovered from shuttle tankers loading at offshore fields has prompted discussions between Norwegian operators and the Sullom Voe oil terminal in the Shetland Isles to reroute Statfjord crude through Brent Blend. Liz Bossley reports.
Power Markets Petroleum Economist 16/04/2001 A product of German engineering The European Electricity Exchange (EEX) started a new electricity futures-trading market on 1 March 2001. It has a well-designed contract, but, to succeed, electricity traders have to be willing to use it. And it is doubtful if the German spot market is sufficiently well developed to support a futures contract at this early stage in the commoditisation of the European electricity market, reports Liz Bossley.
Energy Market Exchanges Petroleum Economist 16/04/2001 A product of German engineering The European Electricity Exchange (EEX) started a new electricity futures-trading market on 1 March 2001. It has a well-designed contract, but, to succeed, electricity traders have to be willing to use it. And it is doubtful if the German spot market is sufficiently well developed to support a futures contract at this early stage in the commoditisation of the European electricity market, reports Liz Bossley.
Oil Trading Argus 09/04/2001 Norway may prolong Brent’s pricing role The Sullom Voe terminal operator, BP, is in talks with Norwegian producers to commingle their crudes with Brent Blend, promising to boost its output and prolong its role as a benchmark.
Natural Gas Markets Petroleum Economist 16/03/2001 Europe investigates a gas leak The European Commissioner Professor Mario Monti launched an investigation into the operation of the Bacton-Zeebrugge gas Interconnector on 1 February. The investigation was prompted by Stephen Byers, UK secretary of state for trade and industry, who had expressed concern that Interconnector trade is inflating UK gas prices. Liz Bossley reports.
Energy Market Regulation Petroleum Economist 15/03/2001 Europe investigates a gas leak The European Commissioner Professor Mario Monti launched an investigation into the operation of the Bacton-Zeebrugge gas Interconnector on 1 February. The investigation was prompted by Stephen Byers, UK secretary of state for trade and industry, who had expressed concern that Interconnector trade is inflating UK gas prices. Liz Bossley reports.
il Markets Argus 12/03/2001 The pursuit of perfect pricing Two-thirds of international crude traders on Brent-related prices, but the price-formation process is likely to become increasingly inefficient as Brent production falls. This special report by Liz Bossley considers the difficulties of creating the perfect benchmark, the structural issues involved, and the strengths and weaknesses of recent attempts to address the issues, such as the IPE’s BWave and Argus’ North Sea Reference Price (NSRP).
Energy Market Regulation Petroleum Economist 15/02/2001 Electricity undercurrents Opposition from UK power generators has forced the energy regulator to withdraw the Market Abuse Licence Condition from their licences. Ofgem, which is under scrutiny over the cost of regulation, is concerned that this leaves the electricity market open to manipulation and is examining new ways to prevent market abuse. Author: Liz Bossley.
Power Markets Petroleum Economist 12/02/2001 Electricity undercurrents Opposition from UK power generators has forced the energy regulator to withdraw the Market Abuse Licence Condition from their licences. Ofgem, which is under scrutiny over the cost of regulation, is concerned that this leaves the electricity market open to manipulation and is examining new ways to prevent market abuse. Author: Liz Bossley.
Oil Markets Middle East Economic Service (MEES) 15/01/2001 Crude Market Volatility Is Here To Stay The following article is based on a new study on the Brent market by Cambridge Energy Research Associates (CERA), called “The Hole in the Barrel”. The study explains how oil companies can protect themselves from rising oil price volatility and minimize the disadvantages of hedging, while arguing that oil companies have more scope for raising revenues, for a given volume of production, than they may realize. Liz Bossley is a Senior Associate with CERA and the principal author of the study.
Energy Market Regulation Petroleum Economist 15/01/2001 Pass the parcel with the Brent market Alleged monopolisation and squeezing of the Brent market last year has prompted the close examination of the UK’s crude markets. The UK government and regulators are examining their options, but there is little enthusiasm for taking the bull by the horns, writes Liz Bossley.
Management of Trading Middle East Economic Service (MEES) 15/01/2001 Crude Market Volatility Is Here To Stay The following article is based on a new study on the Brent market by Cambridge Energy Research Associates (CERA), called “The Hole in the Barrel”. The study explains how oil companies can protect themselves from rising oil price volatility and minimize the disadvantages of hedging, while arguing that oil companies have more scope for raising revenues, for a given volume of production, than they may realize. Liz Bossley is a Senior Associate with CERA and the principal author of the study.
Trading and Corporate Strategy Middle East Economic Service (MEES) 15/01/2001 Crude Market Volatility Is Here To Stay The following article is based on a new study on the Brent market by Cambridge Energy Research Associates (CERA), called “The Hole in the Barrel”. The study explains how oil companies can protect themselves from rising oil price volatility and minimize the disadvantages of hedging, while arguing that oil companies have more scope for raising revenues, for a given volume of production, than they may realize. Liz Bossley is a Senior Associate with CERA and the principal author of the study.
Oil Trading Petroleum Economist 15/01/2001 Pass the parcel with the Brent market Alleged monopolisation and squeezing of the Brent market last year has prompted the close examination of the UK’s crude markets. The UK government and regulators are examining their options, but there is little enthusiasm for taking the bull by the horns, writes Liz Bossley.
Oil Markets Petroleum Economist 12/01/2001 The problem with prices The Tosco-Arcadia legal dispute last year highlighted a fundamental malaise in the oil price formation process. Producers and refiners are increasingly disenchanted with the central role of Dated Brent as a reference point for pricing a large proportion of the world’s crude oil. Liz Bossley examines one possible solution, the so-called BWave weighted-average futures price published daily by the IPE.
Oil Markets Petroleum Economist 10/01/2001 Pass the parcel with the Brent market Alleged monopolisation and squeezing of the Brent market last year has prompted the close examination of the UK’s crude markets. The UK government and regulators are examining their options, but there is little enthusiasm for taking the bull by the horns, writes Liz Bossley.
Oil Markets Petroleum Economist 15/12/2000 Further piece in the FSMA jigsaw In October, we published a snapshot of how the UK’s evolving Financial Services and Markets Act (FSMA) affects energy traders, noting that what constitutes a “regulated activity” would soon be published by the Treasury in a regulated activities order. This is a foundation stone of the FSMA “general prohibition”, which states that no person may carry on a regulated activity in the UK unless authorised or exempt, reports Liz Bossley.
Power Markets Petroleum Economist 15/12/2000 Further piece in the FSMA jigsaw In October, we published a snapshot of how the UK’s evolving Financial Services and Markets Act (FSMA) affects energy traders, noting that what constitutes a “regulated activity” would soon be published by the Treasury in a regulated activities order. This is a foundation stone of the FSMA “general prohibition”, which states that no person may carry on a regulated activity in the UK unless authorised or exempt, reports Liz Bossley.
Natural Gas Markets Petroleum Economist 15/12/2000 Further piece in the FSMA jigsaw In October, we published a snapshot of how the UK’s evolving Financial Services and Markets Act (FSMA) affects energy traders, noting that what constitutes a “regulated activity” would soon be published by the Treasury in a regulated activities order. This is a foundation stone of the FSMA “general prohibition”, which states that no person may carry on a regulated activity in the UK unless authorised or exempt, reports Liz Bossley.
Energy Market Regulation Petroleum Economist 15/12/2000 Further piece in the FSMA jigsaw In October, we published a snapshot of how the UK’s evolving Financial Services and Markets Act (FSMA) affects energy traders, noting that what constitutes a “regulated activity” would soon be published by the Treasury in a regulated activities order. This is a foundation stone of the FSMA “general prohibition”, which states that no person may carry on a regulated activity in the UK unless authorised or exempt, reports Liz Bossley.
Energy Market Regulation City HReview 15/11/2000 Competence to meet new demands Staying on the right side of the Financial Service Authority’s new regime will put greater emphasis on the need for effective compliance training. Liz Bossley talks to David Jackman, who is responsible for new training and competence rules, and Deutsche Bank GCI’s compliance training director Tony Madison, who must apply them.
Energy Market Exchanges Petroleum Economist 15/11/2000 Survival of the fittest in the e-rush This is the law of the Yukon, that only the strong shall thrive. The e-rush, like the gold-rush of 1898, is likely to leave bodies behind, scattered in the snow beside the 21st century equivalent of the Klondike trail. The proliferation of exchanges springing up in the energy sector cannot all strike it rich, but there is a large vein of untapped e-gold that has not yet been exploited.
Interviews, Miscellaneous City HReview 15/11/2000 Competence to meet new demands Staying on the right side of the Financial Service Authority’s new regime will put greater emphasis on the need for effective compliance training. Liz Bossley talks to David Jackman, who is responsible for new training and competence rules, and Deutsche Bank GCI’s compliance training director Tony Madison, who must apply them.
Natural Gas Markets Petroleum Economist 15/09/2000 One cheer for the new gas trading arrangements On 1 October 1999, the new gas trading arrangements (NGTA) for the UK were introduced by the Office of Gas and Electricity Markets (Ofgem). On 21 July 2000 Ofgem published a review of the new arrangements. This is significant from two perspectives firstly, the UK is at the vanguard of the liberalisation of gas trading in Europe and can provide some signposts as to how that trade may develop; and, new electricity trading arrangements (Neta) are scheduled to be introduced in the UK in November, based on a similar model to NGTA. Liz Bossley reports.
Energy Market Regulation Petroleum Economist 15/09/2000 One cheer for the new gas trading arrangements On 1 October 1999, the new gas trading arrangements (NGTA) for the UK were introduced by the Office of Gas and Electricity Markets (Ofgem). On 21 July 2000 Ofgem published a review of the new arrangements. This is significant from two perspectives firstly, the UK is at the vanguard of the liberalisation of gas trading in Europe and can provide some signposts as to how that trade may develop; and, new electricity trading arrangements (Neta) are scheduled to be introduced in the UK in November, based on a similar model to NGTA. Liz Bossley reports.
Interviews, Miscellaneous City HReview 15/09/2000 Playing and staying together Liz Bossley investigates the latest version of team building and asks whether it is worth the expense and what exactly it might do to your carefully assembled team at the end of the, possibly rather expensive day. She spoke to Robert Bell, director of Evolution Event Management Limited, and Sharon Baylay, Marketing Director of the MSNtm network of Internet services’ European, Middle East and African Consumer Group, a part of the Microsoft Corporation.
Power Markets Petroleum Economist 14/08/2000 Powering ahead The success of new electricity trading arrangements (Neta) will be determined, not by statute or by the regulatory body Ofgem, but by the actions of electricity traders, writes Liz Bossley.
Energy Market Regulation Petroleum Economist 14/08/2000 Powering ahead The success of new electricity trading arrangements (Neta) will be determined, not by statute or by the regulatory body Ofgem, but by the actions of electricity traders, writes Liz Bossley.
Power Markets Petroleum Economist 14/07/2000 Overwhelming power The European electricity market is gearing up for liberalisation and competition and the invasion of a risk management culture. There will be no last minute reprieve and so the “barbarians” will come to some countries faster than others. The UK, with Sweden and Finland, is at the vanguard of the encounter with free market forces and over the next six months will demonstrate the outcome of an “if you can’t beat them, join them” stance, writes Liz Bossley.
Energy Market Regulation Petroleum Economist 14/07/2000 Overwhelming power The European electricity market is gearing up for liberalisation and competition and the invasion of a risk management culture. There will be no last minute reprieve and so the “barbarians” will come to some countries faster than others. The UK, with Sweden and Finland, is at the vanguard of the encounter with free market forces and over the next six months will demonstrate the outcome of an “if you can’t beat them, join them” stance, writes Liz Bossley.
Energy Market Exchanges Petroleum Economist 15/06/2000 A demonstration of power As the November 2000 deadline approaches for the UK’s new electricity trading arrangements (Neta), introducing a new market-based method of trading electricity, competition to launch a successful online electricity exchange is hotting up, writes Liz Bossley.
Interviews, Miscellaneous City HReview 15/06/2000 Ah! Brave new world that hath such people in it Liz Bossley has been treated to a view of the future of H R systems by Matthew Barry of the Trace Group. As we near the 21st century, he thinks that City firms are more attuned to the future role of IT in human resources than IT firms themselves.
Power Markets Petroleum Economist 12/06/2000 A demonstration of power As the November 2000 deadline approaches for the UK’s new electricity trading arrangements (Neta), introducing a new market-based method of trading electricity, competition to launch a successful online electricity exchange is hotting up, writes Liz Bossley.
Oil Markets Petroleum Economist 15/05/2000 Robert Mabro, the civil engineer of co-operation An interview with Robert Mabro, the grand old man of the Oxford Institute for Energy Studies. Reports Liz Bossley.
Trading and Corporate Strategy City HReview 15/05/2000 BP – the difference between democracy and communism One of the City’s best-kept secrets was the giant merger between British Petroleum and Amoco to make the largest privately owned oil company in the world. It was billed as giant in terms of the capital employed, but there were also large numbers of people involved in duplicated roles too. Liz Bossley spoke to the company’s HR director.
Interviews, Miscellaneous City HReview 15/05/2000 BP – the difference between democracy and communism One of the City’s best-kept secrets was the giant merger between British Petroleum and Amoco to make the largest privately owned oil company in the world. It was billed as giant in terms of the capital employed, but there were also large numbers of people involved in duplicated roles too. Liz Bossley spoke to the company’s HR director.
Interviews, Miscellaneous Petroleum Economist 11/05/2000 Robert Mabro, the civil engineer of co-operation An interview with Robert Mabro, the grand old man of the Oxford Institute for Energy Studies. Reports Liz Bossley.
Management of Trading Petroleum Economist 14/04/2000 A frisson of anxiety Derivatives transactions are useful tools in managing risk, but managements have to be vigilant in how they use them, writes Liz Bossley.
Interviews, Miscellaneous City HReview 14/04/2000 Rose to the occasion Stylish but comfortable, functional but with a dash of artistic flair, the interview room at The Rose Partnership could be a metaphor for the company itself. Despite the fact that Michael Byrne’s time is much in demand, he puts strangers at their ease. This is to be expected from the chief operating officer and director of one of the most successful executive search companies in the City of London.
Energy Market Exchanges Petroleum Economist 15/03/2000 Plugging into European electricity After years of slow progress, the pursuit of open access to the European electricity market is gathering pace. While the level of commitment to liberalisation and competition of the different member of states remains patchy, the race between energy companies to secure a competitive edge is providing an impetus of its own that will prove difficult to resist, writes Liz Bossley.
Power Markets Petroleum Economist 13/03/2000 Plugging into European electricity After years of slow progress, the pursuit of open access to the European electricity market is gathering pace. While the level of commitment to liberalisation and competition of the different member of states remains patchy, the race between energy companies to secure a competitive edge is providing an impetus of its own that will prove difficult to resist, writes Liz Bossley.
Trading and Corporate Strategy Petroleum Economist 15/02/2000 Date-Swapping tax introduction is delayed The UK’s tax authorities have agreed to delay the introduction of new guidelines for the tax treatment of equity swaps, an obscure and complex operational activity for UK North Sea oil producers, writes Liz Bossley.
nterviews, Miscellaneous Petroleum Economist 15/02/2000 Date-Swapping tax introduction is delayed The UK’s tax authorities have agreed to delay the introduction of new guidelines for the tax treatment of equity swaps, an obscure and complex operational activity for UK North Sea oil producers, writes Liz Bossley.
Oil Markets Petroleum Economist 14/02/2000 Date-Swapping tax introduction is delayed The UK’s tax authorities have agreed to delay the introduction of new guidelines for the tax treatment of equity swaps, an obscure and complex operational activity for UK North Sea oil producers, writes Liz Bossley.
Oil Taxation Petroleum Economist 14/02/2000 Date-swapping tax introduction is delayed The UK’s tax authorities have agreed to delay the introduction of new guidelines for the tax treatment of equity swaps, an obscure and complex operational activity for UK North Sea oil producers, writes Liz Bossley.
Oil Markets Petroleum Economist 14/01/2000 Getting the right price for the right Brent contract In this second part of trading Brent, the tools that emerged to handle the different needs of the small oil producers and the very large players are examined, as well as the evolution of the Brent OTC and IPE swaps and options markets. By Liz Bossley.
Interviews, Miscellaneous City HReview 14/01/2000 There’s a coach Liz Bossley talks to Dr Richard Ford about the work of Psychology Consultancy Services. He believes that behavioural skills are as important as functional skills when it comes to assessing an individual’s worth to an organisation. City executives need coaching like sportsmen or opera singers, he contends.
Oil Markets Petroleum Review 10/01/2000 Forties blend – an heir apparent to Brent still in waiting Since Brent System crude oil emerged as the North Sea market leader in the early 1980s, the price of Brent has remained king in international oil price formation. However, as we enter the millennium, the Brent suite of contracts faces new challenges to this role. The Brent markets have seen off pretenders to the throne in the past – notably Forties and Øseberg – but the current extent of trader disenchantment means that a new challenge which is now emerging from Forties should at least be taken seriously, writes Liz Bossley, former Head of Marketing for Enterprise Oil.
Weather Trading Petroleum Economist 15/11/1999 Pennies from heaven, while singing in the rain The impact of weather on an economy has been proved to be significant, so it is inevitable that exchange-trading the elements is becoming increasingly popular. Author: Liz Bossley.
Interviews, Miscellaneous City HReview 15/11/1999 Jefford’s changed management challenge Three weeks into his new job as the global head of human resources for Barclays Capital, Stephen Jefford is acutely aware of the how much he still has to learn about his new employer. In a conference room overlooking the Thames, in the shadow of the docklands light railway, he chose his words with care when talking to Liz Bossley.
Oil Markets Petroleum Economist 15/10/1999 Electronic documentation is set to cut oil trading costs Bolero was set up to help resolve the problems of an antiquated oil cargo shipping documentation system, but it could be adapted for oil trading, writes Liz Bossley.
Oil Markets Petroleum Economist 15/09/1999 A broader focus is needed The growing popularity of offshore loading of crude oil could be the downfall of the practice because of the effect on prices, writes Liz Bossley.
Management of Trading City HReview 15/09/1999 Play hard and fast to beat the norm The problem of benchmarking traders’ performance lies not only in measure “soft” issues. It also concerns how to measure “hard” issues without setting up goalposts, movement of which becomes the focus of attention rather than trading performance, says Liz Bossley.
Oil Trading City HReview 15/09/1999 Play hard and fast to beat the norm The problem of benchmarking traders’ performance lies not only in measure “soft” issues. It also concerns how to measure “hard” issues without setting up goalposts, movement of which becomes the focus of attention rather than trading performance, says Liz Bossley.
Trading and Corporate Strategy Petroleum Economist 16/08/1999 Use of the forward oil price curve for project financing After a prolonged period of low oil prices, traditional sources of funding the North Sea oil exploration and production (E&P) sector are wary of investing in oil companies based on a few months recovery. But conservative North Sea companies may be missing out on a new source of development funding ­ the forward oil price curve. Not only is this a source of funding, it is a mechanism for unbundling oil price risk, which, as recent history shows, E&P companies are ill-equipped to deal with. By Liz Bossley.
Weather Trading Corporate Finance 14/06/1999 Exposed to the weather? A company that is beholden to the climate for the success of failure of its goods or services can now engage in options and swaps to hedge the risks. Liz Bossley explains how this new branch of the derivatives market works.
Oil Markets Investor Relations 15/03/1996 Damnation or Salvation Liz Bossley (formerly Liz Gall) on what every Investor Relations Officer should know – and be willing to explain – about derivatives, but may have been afraid to ask.
Management of Trading Investor Relations 15/03/1996 Damnation or Salvation Liz Bossley (formerly Liz Gall) on what every Investor Relations Officer should know – and be willing to explain – about derivatives, but may have been afraid to ask.
Oil Trading Investor Relations 15/03/1996 Damnation or Salvation Liz Bossley (formerly Liz Gall) on what every Investor Relations Officer should know ­ and be willing to explain ­ about derivatives, but may have been afraid to ask.
Oil Markets Corporate Finance 15/01/1996 A Hidden Form of Basis Risk There are two traditions of oil trading, one based on the experience of those involved in its physical delivery and the other based on the precautions taken by commodity dealers. When a force majeure occurs – an event outside the control of the parties to a contract – resolution could be difficult if they are working to different rulebooks. Liz Bossley highlights the basis risk.
Energy Market Regulation Corporate Finance 15/01/1996 A Hidden Form of Basis Risk There are two traditions of oil trading, one based on the experience of those involved in its physical delivery and the other based on the precautions taken by commodity dealers. When a force majeure occurs – an event outside the control of the parties to a contract – resolution could be difficult if they are working to different rulebooks. Liz Bossley highlights the basis risk.
Oil Trading IPE Newsletter 15/03/1993 Challenge to Brent Bland’s position 1993 could be the year when Brent Blend’s position as the world’s leading international marker price is challenged by Forties Blend, its closest North Sea rival. So says Liz Bossley (formerly Gall), Marketing Director of Enterprise Oil plc.
Oil Markets NYMEX Energy in the News 15/09/1992 North Sea Oil Hedgers Must Keep an Eye on their Tax Bill The aim of hedging is to protect an existing position against an adverse price movement, thereby locking in a desired financial outcome. Too often the trader placing a hedge is not in a position to consider the full financial implications of his actions, especially the impact of taxation. Without this information an attempt to lock in a pre-tax profit can deliver an after-tax loss.
Oil Taxation NYMEX Energy in the News 15/09/1992 North Sea oil hedgers must keep an eye on their tax bill The aim of hedging is to protect an existing position against an adverse price movement, thereby locking in a desired financial outcome. Too often the trader placing a hedge is not in a position to consider the full financial implications of his actions, especially the impact of taxation. Without this information an attempt to lock in a pre-tax profit can deliver an after-tax loss.
Oil Markets Pipeline 15/07/1992 Back to the future: The evolution of the North Sea oil market As output from some key North Sea fields beings to wane, Brent blend crude may lose its position as the leading marker grade in international oil trade. Liz Bossley of Enterprise Oil discusses the rise and possible fall of Brent in this role and suggests that history may be repeated, with Forties crude regaining its original position.
Management of Trading NYMEX: Global Energy ’89 01/09/1989 Back from the cliff’s edge Liz Bossley (formerly Gall) profile.