• Do you know how a sophisticated ETRM solution can be more useful compared to Traditional spreadsheet approach?
  • Are you well protected from the key market risks?
  • Are you looking for solutions that offer quicker payback and lesser disruption to services?
  • Are you aware of the best practices in price forecasting for strategic planning?
  • Are you connected to the volatile market dynamics in real time?
  • Are you looking for handy tools to implement right hedging strategies at the right time?

ETRM and Pricing

iOG Solutions provides two inter-connected services in this area :

  • Energy Trading and Risk Management (ETRM)
  • Price tool Application

Excel at Managing Trading Risks

As an energy market participant, you have to develop prudent trading strategies to manage risks.

Sophisticated Energy Trading

  • Many oil and gas producers and marketers employ hedging strategies to lock in prices at profitable levels. Futures contracts and swaps can be effective tools in managing price and basis risk, creating price caps, price floors and “no-cost collars” to manage price risk.
  • Energy and commodities’ firms engaged in active trading are investing in more sophisticated ETRM solutions.
  • Excel is not going to cut it!
  • There are distinct benefits of moving away from using a complex web of disparate software solutions and spreadsheets.

What is an integrated Energy Trading and Risk Management (ETRM) solution?

ETRM activities can be broadly classified as

  • Bidding, scheduling/nominations (generally, front office)
  • Price forecasting, simulations, risk management (generally, middle office); and
  • Balancing, settlement, contract management (generally, done by back office)

The interfaces amongst these offices make it impossible to get a clear picture of the corporation’s global exposure when departments work in isolation. In this context, integration becomes vital to today’s energy industry.

In a system that is integrated on an overall basis, the various sub-systems can speak to each other seamlessly, allowing for much greater ease in management of data flows. Integration provides more visibility into the logistics, operations and financial growth of your company throughout the entire deal capture process.

ETRM system

Key advantages of an ETRM system

  • Serve as a system of record for all transactions
  • Provide a controlled environment
  • Improve accuracy of data entry
  • Provide an audit trail
  • Reduce the amount of reconciliation done by the business
  • Automate manual processes, such as confirmations and settlement
  • Support risk management and measurement

In developing an ETRM infrastructure that effectively enables and supports the business, one needs to look beyond just a single application. You should consider other methods and technologies that need to be considered as part of the overall solution such as “Data integration”, “Data management”, Ancillary systems (such as freight, forecasting, logistics) and Reporting.

What we offer

iOG has an experienced team of consultants with expertise on popular technologies such as SAP's - IS-Oil, TSW, GTM, TRM, BI, XI and Trading package sections such as TriplePoint - (Commodity-SL, Credit Ready), OpenLink - (Endur gMotion, cMotion) and Allegro Trading Solutions.

We help our clients in

  • Capture AS-IS and Define future TO-BE for trading.
  • Choosing the right ETRM solution that fits into the business needs at the optimum implementation cost and duration
  • Defined deal capture, pricing workbench, marine scheduling
  • Mark To Market (MTM), inventory projection for international crude (Onshore, In-Transit, Sumed, etc.)
  • Defining deal types (spot, term, EFP), external feeds (ICE, NYMEX, Platts, Opis, and Argus data)
  • Three way Pegging, Transportation, Trades (affiliate and third-party, statistical, buy/sell, OTC/PTP, swap/EFS, futures, internal)
  • New Deal Capture system OpenLink - Endur, gMotion, cMotion
Pricing Tool

You need to be aware of the market dynamics minute by minute in order to proactively respond to the rapidly changing market environment. Pricing tools offer detailed information pertaining to all aspects of the industry through a single computer application. (e.g. PAWS, GlobalView, Bloomberg, Reuters)

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