Energy Risk USA 2007: Energy Risk magazine's 11th annual conference

Day 1 - Houston, May 15, 2007
8.30	Registration and breakfast
8.50	Welcome address: Stella Farrington, Editor, ENERGY RISK MAGAZINE
9.10	KEYNOTE Keynote address Marc Spitzer, Commissioner, FEDERAL ENERGY REGULATORY COMMISSION (FERC)
9.40	EXECUTIVE Executive address Lew Alexander, Chief Economist, CITIGROUP
10.20	SPECIAL ADDRESS Special address: Increasing integration and globalization of the energy markets Critical linkages between different commodity and geographical markets: LNG markets, carbon emission markets, interactions between physical and financial markets Skills, software and information feeds required to support the emerging BTU market Future of energy trading: Changing mix of market participants, emerging cross border regulatory challenges, impact on the market depth and efficiency from emerging trading centers and platforms Vincent Kaminski, Professor, JESSE H. JONES GRADUATE SCHOOL OF MANAGEMENT, RICE UNIVERSITY
11.00	Morning break and opportunity to visit the exhibition
	Stream 1 Innovative techniques in energy risk management	Stream 2 Latest advances in quantitative methods	Stream 3 The future in environmental risk management
11.20	Chairman’s opening remarks Matt Wareing, Managing Director, North American Head of Commodities Sales and Marketing, CITIGROUP	Chairman’s opening remarks Valery Kholodnyi, Professor and Executive Director, Center for Quantitative Risk Analysis, Department of Mathematical Sciences, MIDDLE TENNESSEE STATE UNIVERSITY	Chairman’s opening remarks
11.30	Commodity structuring and risk analysis Characteristics of physical and financial commodity deals Risk analysis and quantification Risk appetite and mitigation Steve Leppard, Director Commodity Structuring, MERRILL LYNCH	Masterclass: Modeling correlation for the energy markets Modeling co-movement of prices across geographical locations, tenors and different commodities Correlation based energy derivatives and structured products What is meant by “trading correlation”? Estimating correlations for risk management The limitations of correlation Co integration approach to modeling price co-movement Vincent Kaminski, Professor, JESSE H. JONES GRADUATE SCHOOL OF MANAGEMENT, RICE UNIVERSITY	Latest advances in the carbon markets Carbon offsets: towards a global carbon market? Offset project types, host countries and buyers Phase II of the European Union Emissions Trading System: supply and demand balance The Northeast Regional Greenhouse Gas Initiative: price dynamics and the role of offsets US federal cap-and-trade proposals: market size and opportunity Véronique Bugnion, Managing Director, POINT CARBON
12.10	Hedging of illiquid indices with BP’s Risk Warehouse Types of illiquid indices Managing basis risk in single book: advantages and disadvantages Model identification Illiquid options Pricing of extreme events and other environmental variables Michael Bertuccio, Managing Director, Global Structured Products Group , BP	Masterclass: Hybrid modeling – a fundamental and statistical approach Risks and markets: short-term (structured products) and long-term (equity risks and convergence trades) Volatilities and correlations: historical relationships and forward valuations Integration of market based and fundamental information Inefficient use of information in reduced-form modelling High dimensional dependence and hybrid modelling Limitations of correlation, copulas, and hybrid modelling Risk scaling and hybrid modelling Krzysztof Wolyniec, Managing Director, SEMPRA COMMODITIES	Green dreams: Renewable energies and their potential A look at the growth areas within renewable energy markets Derivatives strategy within your portfolio Overcoming transmission infrastructural challenges David Berry, Financial Associate, HORIZON WIND ENERGY
12.50	Lunch and opportunity to visit the exhibitions
14.00	Statoil case-study: How a leading oil company incorporate a comprehensive understanding of risks into its strategic planning Petter Kapstad, Head of Risk Management, STATOIL	Masterclass: Evaluating spark options The shortcomings of correlation Challenges of pricing in thinly traded markets What can be gleaned from historical data Stinson Gibner, Managing Director, Head of Fundamental and Quantitative Research, CITIGROUP	Greenhouse management: new tradable indices Monetising GHG emissions – an effective way to lowering emissions? energy markets Tradable indices for the investor’s portfolio Integrating shareholder values and competitive advantage in confronting environmental risks Eron Bloomgarden, US Country Director, ECOSECURITIES
14.40	Institutional investor’s viewpoint Energy emissions risk management – a private equity perspective on the risk landscape How a private equity can contribute to the market for emissions management Martin Whittaker, Director, MISSION POINT CAPITAL	Masterclass: Hedging strategies: a view from the middle office Portfolio hedging strategies VaR limits and other internal controls Reducing earnings volatility Managing basis risk Dealing with firm specific issues Kevin Kindall, Director of Quantitative Analysis, CONOCOPHILLIPS	Expansion of ethanol production and its role in the President’s new energy policy Exploring the profitability and potential ethanol as an investment Evaluation of President Bush’s policy on strategic increase of ethanol production Relationship between oil prices and clean energy prices Towards lower fuel prices and independence from Middle Eastern oil Kevin Kuykendall, Chief Executive Officer, WHITE ENERGY
15.20	Afternoon break and opportunity to visit the exhibition
15.50	CenterPoint Energy case study: Enterprise risk management – a practical approach Using the COSO ERM integrated framework Gaining support: from the board of directors to commercial management Developing a strategic and operations perspective Effective methods of gathering data Benefits of a pilot project How to use results from a risk assessment Role of consultants Inherent vs. residual risk Lee Ferrell, Chief Risk Officer, CENTERPOINT ENERGY	Masterclass: Modeling implied volatility for European call and put options on forwards on power with scaling spikes in the framework of the non-Markovian approach Modeling power forward prices for power with scaling spikes Analytical pricing of European call and put options on forwards on power for power with scaling spikes Analytical expression for the probability distribution for power forward prices Valery Kholodnyi, Professor and Executive Director, Center for Quantitative Risk Analysis, Department of Mathematical Sciences, MIDDLE TENNESSEE STATE UNIVERSITY	Emissions trading – what lessons can US companies gain from the European experience Practical lessons from the EU Emissions Trading Scheme Implications of emissions trading for utility strategy and investment choices Evaluating supply and demand issues in a global carbon market When might it happen in the USA – and who will be the winners and losers? Gearóid Lane, Director of Energy Procurement, CENTRICA ENERGY
16.30	Keeping an eye on the weather – outlook for weather derivatives in 2007 The weather market today Trends in energy weather risk management General goals of risk management Matching the risk profile of your company to your risk management program Martin Malinow, Chief Executive Officer, GALILEO WEATHER RISK MANAGEMENT	Masterclass: Real option valuation in the energy-intensive chemical industry and how this apply to energy companies Modelling chemical processes Identifying flexibility and growth opportunities Gathering market data Assessing contracts Solving valuation models Tom Murphy, Managing Director, ROG and Partner, VALUATION RISK & STRATEGY LLC	Cost-benefits analysis of wind energy – developing and delivering wind energy Transmission challenges to overcome Key factors of success that investors should be aware of Potential regulatory challenges they would face Jess Totten, Director, Electric Industry Oversight Division, PUBLIC UTILITY COMMISSION OF TEXAS
17.10	Chairman’s closing remarks	Chairman’s closing remarks	Chairman’s closing remarks
17.20	Cocktail Reception
19.00	End of day one

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