Subscribe to Prestiva's RSS feed. Thanks for visiting!

Building retrofitting, geothermal energy among growing sectors

President Barack Obama’s $787 billion economic stimulus plan is intended to revive the economy, largely by putting people back to work. A hefty chunk of that money, $40 billion, is aimed directly at creating what the administration calls “green jobs.”

1. Advanced biofuels
2. Building retrofitting
3. Geothermal energy
4. Green chemistry
5. Green manufacturing
6. Smart grid
7. Solar energy
8. Sustainable agriculture
9. Sustainable green retailing
10. Wind energy

For More Detail listing go to: MSNBC

Exxon Mobil Corp. said Tuesday it will make its first major investment in greenhouse-gas reducing biofuels in a $600 million partnership with biotech company Synthetic Genomics Inc. to develop transportation fuels from algae.

Despite record-breaking profits in recent years, the oil and gas giant has been criticized by environmental groups, members of Congress and even shareholders for not spending enough to explore alternative energy options.

One of the company’s requirements was finding a biofuel source that could be produced on a large scale. It says photosynthetic algae appears to be a viable, long-term candidate. If the alliance is successful, pumping algae-based gasoline at Exxon service stations is still several years away and will mean additional, multibillion-dollar investments for mass production.

For More information: MSNBC

ETRM systems support business processes in different areas ranging from the front offi ce (deal capture, positions, market data, trader tools), middle office (risk management, risk reporting, modeling and quantitative analysis), back offi ce (settlement, accounting, invoicing, credit, AR/AP and GL), and operation management (scheduling, nomination, dispatch and load management). Users of ETRM systems include all types of market participants such as utilities, producers, investment
banks, hedge funds, merchants, marketers, and large end-users (commercials and industrials). Since their inception in the early 1990s, ETRM systems continued to evolve and adapt to emerging needs and requirements (such as the Sarbanes-
Oxley Act); for the most part, they provided a much-needed service and facilitated transactions management, a fundamental
and basic requirement for any market participant engaged in bilateral and/or ISO transactions. From this perspective,
2008 was another year in which ETRM systems fi lled a market need.

Events and developments during the last seven years highlighted the importance of the second need that ETRM
systems are supposed to meet – risk management. The 21st century, which started with a big bang that drove many players
into retrenchment and caused bankruptcies, shakeouts and restructurings, has highlighted the importance of this rather
fundamental function. Recent developments in software and Internet technologies led to a signifi cant increase in data
availability and processing needs, a situation that introduced new challenges to the corporate world, including enterprise
risk management and integration. Unfortunately, the slow evolution of legacy systems was not able to meet these revolutionary
changes in business needs – as a result, ETRMs started to fall short of expectations, a situation explained by
their continued high replacement rate of over 50 percent. The average market participant in the energy industry continues to use fi ve to 15 systems in the trading
and risk management function, including a number of homegrown spreadsheets developed to fulfi ll missing critical functionality
in commercially available ETRM systems.

Looking forward, ETRM systems will be increasingly challenged to address the emerging needs of the energy
industry. User requirements are becoming broader and more demanding; integrated enterprise risk management is quickly
moving to the forefront as more and more companies realize that poorly integrated systems are very costly to maintain
and inadequate to meet the challenges of the 21st century. The following is a list of functionalities that are quickly becoming
required capabilities (instead of “nice to have” features) in the energy transaction and risk management space:

ETRM/CTRM Products : OpenLink, Triple Point, Allegro, Sungard, etc

For more info: abacussolution

Triple Point Technology®, the leading global provider of multi-market commodity and enterprise risk management software solutions, announced today Commodity XL for Emissions™. Commodity XL for Emissions enables organizations to track, manage, analyze, comply and report against all regulatory schemes around the world including the EU Emissions Trading Scheme (EUETS), National Greenhouse and Energy Reporting Scheme (NGERS), US Regional Greenhouse Gas Initiative (RGGI) and California Climate Action Registry (CCAR).

“Many analysts forecast emissions to become the most widely traded derivative product in the next 20 years, surpassing even T-Bills with the market growing to over US$3 trillion,” said Michael Schwartz, chief marketing officer, Triple Point. “Emissions management is a corporate governance and compliance issue for our customers but it also offers a potentially large trading opportunity when handled with a sophisticated, multi-commodity platform such as Commodity XL.”

Commodity XL for Emissions is the only solution that handles the full scope of emissions trading and management across all regulatory schemes on a multi-commodity platform. It is the most sophisticated and flexible system available that supports organizational corporate governance strategies in the quickly evolving emissions market. Commodity XL for Emissions tracks position by installation, business line, company, country or any other hierarchical level enabling identification of any shortfalls or surpluses in compliance position. This ensures timely and accurate reporting to regulatory bodies. Commodity XL for Emissions provides what-if scenario analysis to optimize abatement strategies, fuel switching alternatives and trading programs.

For more information: Triple Point

Excerpt from Obama proposal issued June 17, 2009

“To contain systemic risks, the Commodities Exchange Act (CEA) and the securities laws
should be amended to require clearing of all standardized OTC derivatives through
regulated central counterparties (CCPs). To make these measures effective, regulators
will need to require that CCPs impose robust margin requirements as well as other
necessary risk controls and that customized OTC derivatives are not used solely as a
means to avoid using a CCP. For example, if an OTC derivative is accepted for clearing
by one or more fully regulated CCPs, it should create a presumption that it is a
standardized contract and thus required to be cleared.”

Click the image to expand

The following map shows pipelines in North America, including cross-border, international pipelines which originate or end in North American countries. You can click the map to see an enlarged version. The pipeline routes on the map are labeled with the codes that are explained in separate tables. These tables, together with more detailed maps of groups of countries, can be accessed through the following links. On the maps and table, pipeline label codes are colored green for oil, red for gas and blue for products, such as gasolene and ethylene. The diameter, length and capacity of the pipelines, if known, are shown on the tables.

Click here to see the detail Map of US and Canada

SunGard has been named as the top vendor in Energy Risk’s 2009 Software Rankings, specifically in the operational risk, risk metrics, trade execution and best customer service categories. SunGard also placed among the top three in 15 of the 19 categories.

The Energy Risk annual survey assesses software companies based on the functionality, usability, performance, and reliability of solutions by conducting an online poll of industry users of energy trading and risk management tools. Energy Risk’s Software Rankings are determined by readers and professionals throughout the industry, who must write in the name of vendors for each category rather than choose from an existing list of vendors. The magazine received between 13 and 19 different vendor names for each category, and rankings were determined by the percentage of votes each vendor received.

Stella Farrington, editor of Energy Risk magazine, said, “SunGard scored consistently highly throughout the survey, showing that its customers are happy with both its current technological offerings, knowledge of the markets and customer service.”

Ben Jackson, chief operating officer of SunGard’s Kiodex business unit, said, “SunGard helps corporations, banks, and hedge funds transform their risk into advantage by helping them accurately price commodity trades, design optimal hedging strategies, improve price execution and portfolio valuation, and comply with accounting best practices (FAS 133, FAS 157 and Sarbanes Oxley). For our corporate customers, SunGard helps minimize the impact of volatile commodity prices on their earnings and help generate execution savings.”

Matt Mandalinci, president of SunGard’s energy business, said, “SunGard’s energy solutions help financial services institutions, industrial and energy companies to efficiently compete by streamlining and integrating the trading, risk management and operations of physical commodities and their associated financial instruments. Our energy solutions provide information to anticipate, evaluate and adapt in today’s rapidly changing global energy sector.”

SunGard’s energy solutions provide front- to back-office support for capturing deals and delivering market data for valuation; clearing and reconciling transactions, as well as transaction invoicing and accounting; analyzing and managing transaction and portfolio risk; facilitating physical transmission or delivery of commodities; and supporting the logistics and inventory of fuels used in producing power and industrial products. SunGard’s Kiodex helps companies manage exposure to commodity and energy price risk and improve operational risk. Delivered as Software-as-a-Service* (SaaS) solution, SunGard’s Kiodex is a Web-based commodity trading and risk management solution that integrates trade capture, valuation models, risk measurement, financial reporting and independent market data.

In today’s volatile market, buying and selling energy commodities is an uncertain proposition at best. Any firm that buys or sells energy commodities is exposed to price, counterparty credit, and other market and physical risks. These risks, coupled with increasing regulatory constraints such as Sarbanes-Oxley, have led many organizations to Energy Trading Risk Management (ETRM) software solutions.

What Is ETRM Software?
Many companies are turning to ETRM software to mitigate the financial and operational risks of fluctuating energy prices and more rigorous regulatory requirements by managing trading-related activities for energy commodities. In addition, this software also helps address physical risks by managing functions such as scheduling, forecasting, and transportation/transmission. When implemented effectively, it also can help cut costs.

How Does ETRM Work?
ETRM software increases accuracy and predictability through the use of a real-time modeling system that enhances precision and provides an accurate view of credit exposure. In addition, its scheduling component allows companies to plan, track, manage, and account for quantities of energy that must physically be moved from source to point of usage.

Who Is Using ETRM?
This software is widely used by almost every organization within the wholesale energy commodities market, and increasingly to combat steep and fluctuating energy prices and stricter regulatory requirements. Areas that utilize this software include trading, marketing, transmission, and distribution, and ISO (International Organization for Standardization) integration and utilities, to name a few, although utilities are responsible for roughly half of the product’s market share. While the benefits of this software extend outside energy-related industries to areas such as financial services, a good percentage of the software is still utilized within the energy industry.

How Has ETRM Software Evolved?
ETRM software originated in 1992 from the regulatory requirements put into place by FERC Order 636, known as the “restructuring rule,” which was designed to increase efficiency within the interstate natural gas transmission system. Since then, the software has evolved to incorporate all energy commodities.

While regulatory requirements have elevated ETRM’s role from that of a competitive advantage tool to a necessity in all areas of energy commodities trading, this software continues to change at a much more frequent pace than other types of software. Today, the ETRM market remains dependent on trends in the utilities industry, preventing stability in its product offerings.

There are some indications of movement towards standardization, as software providers continue to improve product agility. Newer products incorporate greater scalability, flexibility, and configurability, lessening the ownership and implementation costs and mitigating risks associated with integration. Better interfaces also improve connectivity, as well as support and maintenance.

ETRM software vendors enjoyed explosive growth last year. Even in a tough economy, the product outlook shows no signs of slowing; many software providers predict their 2008 numbers will exceed those of 2007. Overseas, the market for ETRM solutions remains immature, but vendors expect growth rates to be similar to those in North America. According to UtilPoint findings, as utilities become more self aware of risks and their implications, the market for ETRM software will improve, underscoring the industry’s increasing focus on risk management.

Despite some consolidation, there remain more than 70 ETRM vendors and products—each with certain strengths and weaknesses that may vary according to the company’s unique needs.

Advertisement
Which Is the Right Product for Your Organization?
ETRM software comprises a broad set of functions that can vary considerably depending on the commodities traded, the assets employed in the business, the location of those assets, and the company’s business strategy and associated business processes. A prospective user should become familiar with product research and standings, but the company’s needs should take precedence over the research in determining the right solution.

With market requirements and expectations tightening, companies will continue to use ETRM software; however, the need for customization will prevent immediate vendor consolidation. By carefully selecting vendors and planning implementation, companies can apply the right solution for their needs and begin to realize the benefits—and, potentially, competitive advantage.

For more info: distributedenergy

The following table lists United States pipelines in the Gulf of Mexico, as shown on the map. It is followed by the map, which you can click to see an enlarged version. The pipeline routes on the map are labeled with the codes that are explained in the table. Pipeline label codes are colored green for oil, red for gas and blue for products, such as gasolene and ethylene. The diameter, length and capacity of the pipeline, if known, are shown on the table. Follow these links for current United States economic data, which include oil and natural gas production, consumption, imports and exports, and for more detailed statistics from the US Census. For historical data, follow this link, and on that page click on a year, and then a country name.

Click here to view the pipeline Map of US and Mexico