Jun 2002

With the slide in the equity markets and the economic turbulence of the autumn, the past 12 months have not been easy for banks. However, despite the Enron collapse and the virtual absence of the multi-billion dollar mergers of a few years ago, energy bankers claim their sector has continued to perform well, surviving the problems afflicting other divisions, writes Derek Brower

Price volatility, deregulation woes, continued industry consolidation and the aftermath of Enron have all made for a challenging year for the energy sector. This has also kept the legal profession busy and more of the same is expected over the next 12 months. David Townsend reports

This has been a year in which consultants have been borrowing their own wrist watches to tell the time. Just when most energy practices were congratulating themselves on being far away from the dot.com debacles, and focused instead on regular oil, gas and utilities work, the wheels came off energy trader Enron, writes Nigel Ash

The deep water, which already accounts for most of the Gulf of Mexico’s oil production, is an expanding frontier with very promising prospects, according to the Minerals Management Service. Its regional director, Chris Oynes, talked to Tom Nicholls

The US needs natural gas, fast. Demand is forecast to rise strongly and domestic supplies are dwindling. A new play beneath the mature shallow water US Gulf of Mexico, could help plug the gap, writes Dan Rigden

Advocates of floating production, storage and offloading development concepts campaigned long and hard for ship-based production platforms to be allowed into the US Gulf of Mexico. When finally the door opened, there was no-one waiting to come in, and it is no certainty there ever will be, writes Dan Rigden

The North Sea’s Cinderella-sector is, at last, looking interesting, with exploration at a record level and talk of a new licensing round on the horizon. But moves to lighten the authorities’ controls over Danish operations will be needed if interest is to be maintained, Martin Quinlan writes

Italy’s Eni has said it might look to increase its oil and gas production targets through possible acquisitions. David Townsend spoke to the group’s chairman, Gian Maria Gros-Pietro

Italy’s energy major, Eni, is seen by some as proof that you do not need to be giant to be successful at the start of the 21st century. Agip, the upstream oil and natural gas division, has been central to the company’s successful transition from regional to global player, and holds the key to future growth, writes Dan Rigden

Ocean Energy is recovering from the effects of low commodity prices in the late 1990s and a $2bn debt burden. Focused on deep-water exploration in the Gulf of Mexico, Brazil and west Africa, the company claims it can double or triple its reserves over the next few years, writes Anne Feltus

The bigger the oil company, the higher brand finds itself on the corporate agenda. Can the same approach help national oil firms transform into international competitors? John Williamson, board director at brand consultancy Wolff Olins, argues that it can – and that neglecting rebranding carries dangerous risks

The path to world power market liberalisation has not been paved with gold. The dream of a single EU energy market is proving difficult to realise and the Enron shock is having widespread implications in the US and around the world. However, as a recent conference heard, the outlook for the sector is not all bleak. David Townsend reports

Recent developments in numerical computer-based portfolio valuation and risk models make it possible to integrate rapidly traditional portfolio theory with simulation, statistical analysis of downside risk and optimisation techniques, writes David Wood

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