A majority of respondents indicated that an Energy Scenario Management Analysis solution is required for the market/business activities in Gas, Power and Crude portfolios, with a substantial 76% answering all of the above to this question.
"The data reflects the growing awareness of challenges facing energy and commodities professionals in their evolving market, and a desire to incorporate integrated optimization with their traditional ETRM solution or âSmart ETRMâ. A Smart ETRM solution gives multiple perspectives of varying data elements impacting an entityâs portfolio such as production, demand forecasts, logistics, and transportation options. Such a configuration of data provides traders and risk managers with important what if and stress test information providing a robust view of their actual risk position (and the alternatives) in real-time about the impact of their trading decisions. This additional decision support facility is now highly critical,â said Dr. Wolfgang Ferse, EVP, Energy and Commodities Solutions, OpenLink.
When asked what areas of Energy Scenario Management/Analysis the professional traders and risk managers were most interested in learning about, their top five results were as follows:
- 31% want to learn about Optimization Models
- 18% are interested in Analytical Methods (Results, Modification Targets)
- 12% are interested in Time Series Management/Physical Scenario Creation, Active Decision Support
- 11% are interested in IT Support/Integration Aspects
- 9% are interested in Back Testing/Performance Analysis
"The data mirrors studies CommodityPoint conducted in 2009 and 2010 which show that commodities markets are increasingly becoming global across all commodities and all types of trading entities are being affected,â said Patrick Reames, Managing Director of CommodityPoint, a division of UtiliPoint International, Inc. "Today's market participants require ETRM/CTRM solutions that can capture all facets of their transaction lifecycle, not only trading and risk data, but also the appropriate modeling of assets, for optimal decision support."
The survey was conducted in relation to an OpenLink sponsored webinar entitled: Integrated Energy Scenario Management for Optimal Decision Support. Participants included energy professionals in trading and supply organizations exploring the impact of portfolio flexibility to understand support solutions. Integrated Energy Scenario Management for Optimal Decision Support revealed opportunities to improve profitability with a similar risk profile through better decision making. Dr. Wolfgang Ferse presented as part of a panel of industry experts, including Energy Risk Magazineâs Patrick Blum and CommodityPointsâs Patrick Reames.