Introduction

Activity in the energy risk market as been flurried in the wake of the recent global financial meltdown. While all sectors of this risk industry may not be on the up, there are others that are. There are many areas that make up this portion of the risk market, namely: oil, natural gas, carbon, electricity, coal, weather, emissions, freight, base metals and precious metals. This report will focus on the four key big players, which are carbon, gas, electricity and weather.

Key findings

• Overview of the market – The year ahead will be one of recovery as opposed to previous years that have been marked by sustained periods of growth. However, it is not all gloomy but liquidity has dried up and risk appetite has severely diminished.
• The dreaded R word – The energy risk market will now as a result of the financial calamity be forced to endure the onslaught of financial regulation that is set to hit the sector in the coming months.
• Vendors – there are several dominant key players in this market that have successfully fought against the market downturn over the past year.

Conclusion

The year ahead will be one of recovery rather than growth. Overall energy risk markets have had a rollercoaster ride over the past year but business has not been dire. However, ti is necessary to highlight that while business is good, the financial turmoil slowed progress, hit liquidity and starved the risk appetite that was once so prevalent in financial institutions. In addition, the market looks set to be burdened by the suspected deluge of regulation.

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Tagged with: 2009, energy risk, technology, Technology Research Report