Beruflich Dokumente
Kultur Dokumente
AUGUST 2015
DOE Okays American LNG
Marketing to Export to
Non-FTA Countries
Argus Launches
Emissions-Adjusted Spark
and Dark Spreads for UK
GUEST FEATURE
Delisting of products
and data sources
Potential impact
on data
Power
Power 7
IESO to Host Training Course for Ontarios First Demand Response Auction
7
PJM Holds Capacity Auction with New Capacity Performance Requirement
7
NYMEX Amends 22 Electricity Products
8
Petroleum
Petroleum 10
Platts to Launch New Americas Dirty Tanker Assessments
10
Platts to Publish Dated Brent to Brent Frontline Swap Values for 36 Months Ahead
11
Platts to Launch New Baltic-UK Medium Range Clean Tanker Assessment
11
Platts to Assess Singapore Front Month Swaps and European East-West Fuel Oil
11
Platts to Launch Weekly DINP and DOTP Assessments
12
Platts to Launch New Asia Clean Tanker Assessments
13
Platts Publishes Outright Price Values for Eight US Coastal Vacuum Gasoil Assessments
14
Platts Launches Six US and Canadian Daily Medium Range Clean Tanker Assessments
14
Platts Launches US Scrap Lead-Acid Battery Price Assessments
15
Platts Launches Asian Metallocene C6 LLDPE Assessments
15
Platts Publishes New West African Crude Oil Assessments
16
Argus Launches Daily European Fuel Oil and Gasoil Diesel Assessments
16
Argus Introduces Daily Middle East Butane and Propane Assessments
17
Argus Adds North American Styrene Assessments
18
Argus Introduces Asia-Pacific Forwards for Crude, Refined Products, and Crack Spreads
18
NYMEX Introduces New Light Louisiana Sweet Average Price Options
19
DCE Lists New Petroleum Product Contracts
21
Platts to End Northwest Europe, Italy, and Singapore Visbreaking Yields, Netbacks, and Margins 21
Platts to Discontinue FOB La Skhirra Zarzaitine Crude Oil Outright and Differential Assessments
22
Platts to Discontinue Stybarrow, AHS Crude Index
22
Platts to End CIF Augusta Kumkol Outright and Differential Assessments
23
Platts Discontinues Daily US Styrene Balance of the Month Assessment
23
Platts Ends All US Methyl Ethyl Ketone and Methyl Isobutyl Ketone Assessments
24
Platts Discontinues Weekly US Mixed Xylenes Contract
24
Argus Discontinues Multiple Eugene Island Crude Assessments
25
Argus Stops Druzhba Czech Crude Export Assessment
26
Argus Ends Russian Gasoil Cargo Assessments
26
NYMEX Delists Three RIN Futures
28
NYMEX Discontinues Singapore Fuel Oil Spread Futures
28
Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
In Depth
August 2015
Editorial
Editorial 5
August, the Month of Energy Sector Discontent
5
Summary
Summary
Contents
Power
Petroleum
Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
Finance 39
CME Delists Approved Copper Warehouse
39
Argus Changes Timing Descriptions for Black Sea Steel Publication
40
CME Lists Additional Expiration Months in Serial Options and Serial Mid-Curve Options
on Eurodollar Futures
42
CBOE to List Weeklys Options on VIX
43
CBOE Launches Hedge Fund Benchmarks with Eurekahedge
43
CBOE Introduces 10 Options-Based Strategy Performance Benchmark Indexes
44
CBOT Launches User-Defined Spreads for CBOT Treasury Bond and Note Futures Calendar Spreads 45
Deka Equity Index ETF Launched on Xetra Tracks Sustainable Euro-Zone Companies
45
Ossiam Smart Beta ETF Launched on Xetra to Track Undervalued US Sectors
46
Thomson Reuters Releases StarMine Combined Alpha Model
46
Thomson Reuters Introduces Intraday Evaluated Pricing Capabilities
47
Eurex Launches GMEX IRS Constant Maturity Futures
47
SGX Introduces Evaluated Bond Prices
48
TMX Lists Composite Index Banks and Capped Utilities Index Futures and Options
48
Data
Vendors
Market
Analysis
Guest
Feature
In Depth
August 2015
Editorial
Coal 33
Platts Launches New US Illinois Basin Coal Assessment
33
DCE Launches New Coal-Based Contracts
34
Platts to Discontinue Two US Coal Assessments
34
Summary
29
29
29
30
31
Summary
Natural Gas
Energy Department Authorizes American LNG Marketings Application to Export LNG
Platts to Launch Brazil LNG Netforward
Platts Publishes New Transco and Tennessee Natural Gas Assessments
ICE to List Three US Natural Gas Contracts
Petroleum
Nat Gas
57
57
57
58
58
Power
Coal
60
60
Softs and
Metals
Guest Feature
61
Olefin Prices Volatile Ride May Threaten US Petrochem Renaissance
61
Ethylene 61
Plants at 100%, Impact of Ad-valorem Inventory Taxes
63
Widespread Sentiment, August Contract Price Impact
64
Forward Curve
65
Narrower cash cost margins
66
Propylene 67
Summary 68
Finance
Weather and
Emissions
Data
Vendors
In Depth
70
Weighing the Options:Build an Internal EDM System or Get ZEMA
70
The Role of Enterprise Data Management in Energy and Commodities Industries
70
What is an Enterprise Data Management System?
71
Development of Commercial Off-The-Shelf Software
72
The Case for Building a Modern EDM System In House Costs and Requirements
73
The Case for Buying a Commercial EDM Software ZEMA
78
Case Study 1: A Power Firm That Initially Decided to Build an EDM System
81
Case Study 2: Global Integrated Oil/Gas Firm Licenses ZEMA
82
Conclusion 84
Bibliography
85
Market
Analysis
Guest
Feature
In Depth
August 2015
Editorial
54
54
54
55
56
Summary
Summary
Summary
Editorial
Editorial
Editorial
Power
August,
the Month of Energy
Sector Discontent
Petroleum
By Olga Gorstenko,
Editor-In-Chief Datawatch
olga@ze.com
Nat Gas
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
In Depth
August 2015
Finance
On August 7, 2015, Midwest Reliability Organization (MRO), one of the NERCs subsidiaries, released a
Happy Birthday wish to EPAct. A classy congratulatory press release contained a reminder about the
mandate of the industry to provide a critical public service . . . one that needs to be protected in ensuring
a highly reliable regional bulk power system. I dare to speculate that probably this so unconventionally
delivered message about where the MROs heart is has something to do with the EPAs progressive
march towards cleaner power generation. Several days prior to this message, on August 3, 2015, EPA
introduced a revised version of the Clean Power Plan, which, according to EPA, offers more flexibility to
the states in meeting compliance with reducing CO2 emissions. Maybe there was some flexibility added;
however, the target compliance year has been moved up by two years, making this plan more ambitious.
This historic document mandates the electric sector to reduce CO2 emissions by 32% below the 2005
level by 2030. Each state was given an individual target by EPA calculated on the basis of weighted
Softs and
Metals
In August of 2003, a massive blackout left 50 million electricity users in Northeast Canada and the United
States in darkness for several days. Even though that disturbance was nowhere near the expanse of the
2012 blackout in India with 620 million left without electricity, the US regulatory impact from this event
was disproportionately enormous. The reaction from the government authorities to the Indian blackout
was a three-person committee investigation that issued a report with series of recommendations. North
Americans had a bit more thorough take. A joint US-Canadian government federal taskforce investigation
concluded that the cause of such disaster was absence of mandatory reliability standards. Two years
later, in August 2005, the Energy Policy Act (EPAct) was signed into law by US President George W. Bush.
This legislature set up the framework for mandatory requirements for reliability of services provided by
operators of bulk electric systems. By the way, it was the second time lawmakers got very serious about
reliability. An earlier joint US-Canadian blackout in 1965 set the foundation for creation of NERC itself;
forty years later, EPAct made these reliability standards developed by NERC mandatory, and NERC was
given the authority to enforce compliance with these standards.
Coal
The eighth month of the year has historically been very special for the US energy sector. The Northeast
Blackout of 2003, the Energy Policy Act (EPAct) of 2005, and the Clean Power Plan and Methane
Emission Reduction Policy proposal of 2015 each had immense impacts on the industry and originated in
August. Whether their birthdays are coincidental or not, logically they are connected with one another in a
very curious manner.
ZEMA Inquiries
Bruce Colquhoun. P: 604-790-3299. E: bruce.c@ze.com
Advertising & Vendor Relationships
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Contact DataWatch
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To search our archives: www.datawatch.ze.com
Petroleum
Nat Gas
Coal
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
In Depth
Finance
Softs and
Metals
August 2015
Email: olga@ze.com
Power
Olga Gorstenko
Editorial
Editor-In-Chief
Summary
Editorial
Editorial
Summary
Power
Editorial
Power
Coal
This full-day course will provide information on the mechanics of how successful participants
will offer their demand response capacity into Ontarios electricity market. It will be most
relevant to organizations that have registered to participate in the first auction, but is open to
all stakeholders.
Nat Gas
In December 2015, Ontarios first Demand Response Auction will be held. In order to prepare
participants for the auction, the IESO is hosting a training course on September 24.
Petroleum
Softs and
Metals
ZEMA collects thousands of regular data reports on power, more than 1,500 of which are based in North America. To
learn more about ZEMAs huge data library, visit www.ze.com/the-zema-solutions/data.
Finance
Weather and
Emissions
On August 21, 2015, PJM announced that the first PJM Interconnection
capacity auction to include the new Capacity Performance requirement attracted
a strong response from capacity resources prepared to meet the new pay-for-performance
standards. The resources that qualified as Capacity Performance units ensure that a reliable
electric supply will be available during extreme weather or other system emergencies.
In Depth
Guest
Feature
August 2015
Market
Analysis
As part of the phase-in of the new standard, at least 80% of the cleared capacity in
2018-2019 auction was required to meet Capacity Performance requirements. The remainder
is base capacity, which may be unable to commit to Capacity Performance standards and
therefore is subject to penalties only during the summer peak period. Capacity Performance
is targeted to be the only capacity product in PJM for the 2020-2021 delivery year. The base
capacity clearing price for the RTO is $149.98/MW-day, about $15 less than the Capacity
Performance price.
Data
Vendors
The 2018-2019 delivery year clearing price for Capacity Performance resources, which
include generation, demand response, and energy efficiency, is $164.77/megawatt-day for
all of PJM except the ComEd and Eastern MAAC delivery areas. For the two constrained areas,
the ComEd Capacity Performance clearing price is $215/MW-day; the Eastern MAAC price is
$225.42/MW-day.
Editorial
Nat Gas
JD
637
I5
280
I7
282
I6
281
I8
283
N1
288
R1
290
O1
289
R4
291
In Depth
August 2015
Guest
Feature
176
Market
Analysis
L1
Data
Vendors
950
J4
Weather and
Emissions
174
Finance
956
Softs and
Metals
152
N3
Coal
Petroleum
Power
The auction attracted over 3,500 megawatts of new generation, including more than
2,900 MW of new generating units and over 500 MW of uprates to existing generating units.
A total of 11,084 MW of demand response was procured for 2018-2019, 1,484 MW of which
is Capacity Performance. Energy efficiency totaled 1,247 MW, with 887 MW being Capacity
Performance. Renewables resources wind, solar, and hydroelectric clearing in the auction
totaled 14,347 MW.
Clearing
Code
Summary
Power
The RTO clearing price in last years auction was $120/MW-day. The base capacity price in
ComEd is $200.21/MW-day; in Eastern MAAC, $210.63/MW-day; and in the PPL delivery
area in Pennsylvania, $75. Overall, the auction procured 166,837 megawatts of capacity,
which represents a 19.8% reserve margin. One megawatt is enough to power about
1,000 homes.
756B
801
IDO
959
894
UD
763
Petroleum
CE
Power
B3
800
Editorial
H2
688
9T
902A
9V
906A
INE
1272
Nat Gas
Summary
U6
553
Power
D4
Coal
Softs and
Metals
Finance
The ZEMA graph below shows PJM LMPs for Western Hub in comparison to settle prices of PJM Western Hub peak
futures on CME NYMEX this summer. Data: PJM Real Time Hub report and CME NYMEX Futures Settlement report.
Analysis like this can easily be generated within ZEMAs Market Analyzer tool. To learn more, book a complimentary
ZEMA demonstration.
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
In Depth
August 2015
Summary
Editorial
Petroleum
Power
Petroleum
Finance
Softs and
Metals
Four assessments would be published on a lump-sum basis and nine assessments would be
published on a Worldscale basis to reflect how these routes are traded. Platts would also
publish a dollar per metric ton value for these routes. The following new assessments are
under consideration:
Coal
Nat Gas
Weather and
Emissions
Data
Vendors
Market
Analysis
10
In Depth
August 2015
Guest
Feature
ZEMA is used by the front-, mid-, and back-office professionals in the petroleum market. To learn how ZEMA can
be tailored to your specific needs and give you access to the right information, book a complimentary ZEMA demo at
www.ze.com/book-a-demo.
Power
Coal
Nat Gas
Petroleum
In addition, Platts intends to publish assessments for all quarterly DFL and Forward Dated
Brent values falling within the period of 36 months from the date of publication. Platts
currently publishes six quarterly and three annual DFL and Forward Dated Brent assessments
DFL. There would be no change to the number of annual DFL and Forward Dated
Brent assessments.
The new daily assessment would aim to capture newly established supply trends of refined
products out of the region following a significant increase in Russian exports of ultra-low-sulfur
diesel from the Baltic region.
Market
Analysis
ZEMA, ZEs data management solution, collects over 300 Platts records on petroleum and other liquids. To learn more
about ZEMAs vast data library, visit www.ze.com/the-zema-solutions/data-coverage.
Data
Vendors
Weather and
Emissions
This assessment would reflect the Baltic to UK Continent route for a clean MR tanker carrying
a cargo of 40,000 mt. The assessment would reflect loadings from Primorsk and discharge at
ports including Amsterdam, Hamburg and Dunkirk. This new assessment would be published
in Platts Clean Tankerwire and PlattsTanker Alert page PGT 1910.
Finance
The new assessment would reflect modern MR tonnage, and it would be published on a
Worldscale basis to reflect how this route is most commonly traded. Platts would also publish
a dollars-per-metric ton value for this route.
Softs and
Metals
On October 1, 2015, Platts proposes to launch a new clean Medium Range (MR) tanker
freight rate assessment reflecting flows from the Baltic to UK Continent.
In Depth
11
Guest
Feature
Effective October 1, 2015, Platts intends to launch assessments for the value
of the 180 CST Singapore Fuel Oil cargo swaps, 380 CST Singapore Fuel Oil cargo swaps, and
380 CST and East-West fuel oil swap spreads, which represents the difference between the
August 2015
Editorial
Summary
Petroleum
Editorial
Power
Platts will publish assessments for three full calendar months ahead of the date of
publication. Platts will publish bids, offers, and interest to trade these swaps in the
Platts Market on Close assessment process.
Summary
Platts will add these assessments to its existing fuel oil derivative suite in order to enhance its
coverage of the fuel oil market and better represent the key high sulfur fuel oil arbitrage route
between Europe and Asia.
Petroleum
comparable months 380 CST Singapore Fuel Oil cargoes and FOB Rotterdam 3.5% Fuel Oil
Barge swaps, at 16:30 London time.
Petroleum
Nat Gas
The ZEMA graph below highlights the spread between on 180cst and 380cst Index Futures
for Singapore Fuel Oil on the SGX. Data: SGX Derivatives-Delayed Prices report. To learn more
about how ZEMA can help with your data and analysis needs, book a complimentary ZEMA
demonstration.
Coal
Softs and
Metals
Data
Vendors
Market
Analysis
12
In Depth
August 2015
Guest
Feature
Specifications for DOTP are: Density between 0.98-0.99 g/cm3. The proposed weekly
domestic delivered East of the Rockies (DER) price assessment to medium-sized customers
by tank car or truck would reflect a cargo size of 44,000-45,000 lb. Larger cargo sizes may be
Editorial
To learn more about the price of petroleum products in the United States, you can use ZEMA to view records
from and the US Energy Information Administration (EIA). To book a complimentary ZEMA demonstration, visit
www.ze.com/book-a-demo/.
Summary
Petroleum
assessed, but will be normalized to standard volumes. Minimum purity level would be at 99%
with a maximum water content of 0.1%.
Power
Petroleum
Softs and
Metals
Finance
ARAB GULF TO SOUTH AFRICA: This assessment would reflect the Arab Gulf to South Africa
route for a clean MR tanker carrying a cargo of 35,000 mt. The assessment would reflect
loadings from Jubail and discharge into Durban followed by Mossel Bay as the discharge
basis port. Fixtures to Cape Town would be considered in the assessment and normalized to
Durban followed by Mossel Bay.
Coal
WEST COAST INDIA TO SOUTH AFRICA: This assessment would reflect the West Coast India to
South Africa route for a clean MR tanker carrying a cargo of 35,000 mt. The assessment would
reflect loadings from Sikka and Vadinar and discharge into Durban followed by Mossel Bay as
the discharge basis port. Fixtures to Cape Town would be considered in the assessment and
normalized to Durban followed by Mossel Bay.
Nat Gas
The new assessments would reflect modern MR tonnage. Both assessments would be
published on a Worldscale basis to reflect how these routes are most commonly traded. Platts
would also publish a dollars-per-metric ton value for these routes.
Weather and
Emissions
These new assessments would be published in Platts Clean Tankerwire and Platts Tanker
Alert page PGT 2920.
See the original announcement.
Data
Vendors
Market
Analysis
Guest
Feature
13
In Depth
August 2015
Editorial
Power
As of September 1, 2015, Platts has published outright price values for its eight
US Gulf Coast, Atlantic Coast and West Coast vacuum gasoil (VGO) assessments. Platts is
also considering discontinuing VGO assessments expressed as differentials to gasoline and
diesel benchmarks.
Summary
Petroleum
Petroleum
These outright price assessments are published in US dollars per barrel, and
complement existing assessments of VGO, which are published as differentials for 0.5%,
1%, and 2% sulfur VGO.
See the original announcement.
Nat Gas
To learn more about petroleum prices in the United States, use ZEMA to view records from Platts. For more information,
visit www.ze.com/the-zema-solutions/.
Effective September 1, 2015, Platts launched six new daily Medium Range clean tanker
assessments from the US and Canada. The new assessments reflect established trade routes
for clean products out of these regions, and are based on modern MR tonnage.
Coal
Each assessment was published on a lump-sum basis and expressed as US dollars per
voyage, to reflect how these routes are traded. Platts will also publish the equivalent US dollar
per metric ton value for these routes.
Softs and
Metals
14
In Depth
August 2015
Guest
Feature
US Gulf Coast to Ecuador: This assessment reflects the US Gulf Coast to Ecuador route for a
clean MR tanker carrying a cargo of 38,000 mt. The assessment reflects loadings from US
Gulf Coast ports such as Texas City, Houston, and Corpus Christi, and discharge at the ports of
La Libertad and Esmeraldas (Balao).
Market
Analysis
US Gulf Coast to Peru: This assessment reflects the US Gulf Coast to Peru route for a clean MR
tanker carrying a cargo of 38,000 mt. The assessment reflects loadings from US Gulf Coast
ports such as Houston, Pascagoula, and Corpus Christi, and discharge at ports including
Callao and La Pampilla.
Data
Vendors
US Gulf Coast to Chile: This assessment reflects the US Gulf Coast to Chile route for a clean
MR tanker carrying a cargo of 38,000 mt. The assessment reflects loadings from US Gulf
Coast ports such as Port Arthur, Port of South Louisiana, and Houston, and discharge at ports
including Quintero, Mejillones, and Iquique.
Weather and
Emissions
US Gulf Coast to East Coast Mexico: This assessment reflects the US Gulf Coast to East Coast
Mexico route for a clean MR tanker carrying a cargo of 38,000 mt. The assessment reflects
loadings from the US Gulf Coast, such as Port Arthur, Houston, and the Galveston Lightering
and Anchorage area, and discharge at ports including Coatzacoalcos (Pajaritos) and Tuxpan.
Finance
Editorial
Power
Petroleum
The new Americas clean tanker assessments will appear in Platts Clean Tankerwire, on
Platts Global Alert page 1912, and in the price database.
Summary
East Coast Canada to US Atlantic Coast: This assessment reflects the East Coast Canada to
US Atlantic Coast route for a clean MR tanker carrying a cargo of 38,000 mt. The assessment
reflects loadings from ports such as Saint John and Whiffen Head (Come By Chance)
and discharge at ports including Boston, Portland, and New York.
Petroleum
US Gulf Coast to Caribbean: This assessment reflects the US Gulf Coast to Caribbean route
for a clean MR tanker carrying a cargo of 38,000 mt. The assessment reflects loadings from
US Gulf Coast ports such as Houston, Port Arthur, Port of South Louisiana, and Corpus Christi,
and discharge at ports including Puerto Prodeco, Cartagena, and Barranquilla in Colombia;
Jose in Venezuela; St. Eustatius; Rio Haina in Dominican Republic; Kingston in Jamaica; and
St. Lucia.
Nat Gas
Coal
Effective August 4, 2015, Platts has added a new weekly price assessment
for scrap used lead-acid batteries reflecting market activity in the US Northeast.
The new assessment is for used 50% lead-acid, starter lighter ignition automotive batteries,
picked up US Northeast. The Northeast region for price normalization will include New York,
New Jersey, Pennsylvania, Delaware, Maryland, Connecticut, Massachusetts, Vermont,
New Hampshire, Rhode Island, and Maine.
Data
Vendors
Market
Analysis
Guest
Feature
15
In Depth
Timing: Cargoes for delivery 15-30 days forward from date of publication.
August 2015
Weather and
Emissions
ZEMA collects more than 600 petroleum data reports from North America alone. To find out how ZEMA integrates this
data with downstream systems, visit www.ze.com/the-zema-solutions/integration.
Finance
Softs and
Metals
The specification is for a minimum quantity of one truckload (42,000-44,000 lb), normalized
to a typical order size one to five truckloads, packaged in shrink-wrapped pallets or skids,
pallet size 40 or 44 by 48, maximum 3,600 lb per skid, no more than three battery layers
separated by cardboard sheets; assessed in a cents/lb range reflecting the majority of
business, normalized to a picked-up US Northeast basis, delivery within 30 days, net-30-day
payment terms.
Summary
Editorial
Petroleum
Basis and locations: CFR China: Shanghai, Ningbo, Xiamen, Shenzhen, Huangpu, Guangzhou,
Xingang and Qingdao, Shantou, Tianjin; CFR South East Asia: Indonesia (Jakarta, Surabaya),
Singapore, Philippines (Manila Bay), Malaysia (Port Klang),Thailand (Map Tap Phut, Laem
Chabang), Vietnam (Ho Chi Minh); CFR South Asia: India (Kolkata, Chennai, Mumbai, Nhava
Sheva), Pakistan (Karachi).
Cargo size: 100-500 mt
Power
Petroleum
Quality specification: 1-Hexene comonomer with a density of 918-940 kg/m3 with a melt
flow index between 1.0-4.5
See the original announcement.
Nat Gas
Finance
Finally, Platts publishes assessments for Jubilee crude, produced offshore Ghana. Jubilee
currently has production of around 100,000 b/d and is produced and loaded from the
Kwame Nkrumah FPSO.
Weather and
Emissions
PA5001548
PA5001549
Ice Gasoil
Settlement
Category
>Products>Fuel oil>Northwest
Europe
>Products>Fuel oil>Northwest
Europe
>Products>Gasoil/Diesel/
Heating oil>Northwest Europe
16
In Depth
August 2015
Differential
basis
Guest
Feature
PA5001548
Description
Market
Analysis
Price type
Data
Vendors
On August 4, 2015, Argus introduced the following weekly series to Argus Caspian Market.
These daily assessments have time stamps of 6, continuous forwards of 0, and are in USD/t.
PA-code
Softs and
Metals
Platts also publishes assessments for Chads Doba grade. Doba is a heavy sweet acidic crude
oil grade produced primarily in the south of the country. Its production is currently around
100,000 b/d, loaded from the Kome-Kribi terminal offshore Cameroon.
Coal
Platts now publishes assessments for Nigerias Erha and Usan. Erha is a light sweet crude oil
grade produced offshore Nigeria. Production is currently around 100,000 b/d from the Erha
FPSO. Usan is a medium sweet grade with a current production rate of around 110,000 b/d.
It is produced offshore Nigeria from the Usan FPSO, which has a capacity of 180,000 b/d.
PA5001549
PA5001549
Category
Ice Gasoil
Settlement
>Products>Gasoil/Diesel/
Heating oil>Northwest Europe
Ice Gasoil
Settlement
>Products>Gasoil/Diesel/
Heating oil>Northwest Europe
Ice Gasoil
Settlement
>Products>Gasoil/Diesel/
Heating oil>Northwest Europe
Power
Differential
basis
Petroleum
Snapshots will appear in the DARK file of the DARK folder, on ftp.argusmedia.com.
See the original announcement.
Nat Gas
ZEMA collects over 100 Argus reports regularly, more than 40 of which pertain to petroleum products. To find out how
ZEMA can convert this data into sophisticated analyses, visit www.ze.com/the-zema-solutions/analytics.
Continuous
Description
forward
PA0016945 4
PA0016944 17
PA0016943 17
Weather and
Emissions
Category
Finance
PA0016946 4
Softs and
Metals
Price type
Coal
Effective August 3, 2015, Argus introduced the following daily codes, which
have time stamps of 8 and are in USD/t. These series can be found in the dpgasia and dpg
data file in the \DLPG folder of ftp.argusmedia.com.
PA-code
Editorial
PA5001549
Description
Summary
Price type
Petroleum
PA-code
Data
Vendors
Market
Analysis
Guest
Feature
17
In Depth
August 2015
PA-code
Description
Power
The weekly codes below have time stamps of 0, price types of 8, continuous forwards of
1, and are in USC/lb:
Category
Petroleum
PA0016917
>Petrochemicals>Styrene>North America
ZEMA collects more than 90 Argus reports from North America alone, more than 40 of which pertain to
petroleum products. To find out how ZEMA can analyze this data and share this analysis with downstream systems, visit
www.ze.com/the-zema-solutions.
Coal
Crude
FWDCrudeAsia
yyyymmddfwdcrudeasia.csv
Refined Products
FWDRefProdAsia
yyyymmddfwdrefprodasia.csv
Crack Spreads
FWDCrackSpreadsAsia
yyyymmddfwdcrackasia.csv
Weather and
Emissions
Filename
Finance
Folder
Softs and
Metals
Effective July 22, 2015, Argus has introduced new Asia-Pacific Forwards for Crude, Refined
Products, and Crack Spreads. Each data set will be available through the Argus FC API and
also via ftp.argusmedia.com at 8:00 a.m. CST.
Product
The following new products have been added to support this data:
Crude oil Asia fixed price
175
176
177
178
179
180
181
Guest
Feature
174
Market
Analysis
Description
Data
Vendors
Product ID
Nat Gas
18
In Depth
August 2015
Editorial
As of July 23, 2015, Argus added series to the Argus DeWitt Benzene and
Dervatives data feed. For FTP subscribers, these changes apply to the
dbenzeneweekly filein the DATA/DBenzeneWeekly folder of ftp.argusmedia.com.
Summary
Petroleum
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
Murban
271
272
273
Oman
274
Propane AFEI
275
Upper Zakum
Data
Vendors
ESPO Blend
Weather and
Emissions
255
Finance
Dubai swap
Softs and
Metals
254
Coal
Butane AFEI
Nat Gas
253
Petroleum
Basrah Light
Power
252
Market
Analysis
Guest
Feature
Effective September 14, 2015, New York Mercantile Exchange, Inc. (NYMEX)
will list three new European-style Light Louisiana Sweet (LLS) average price option contracts
for trading on NYMEX trading floor and CME Globex, and for submission for clearing through
CME ClearPort. Also concurrent with the launch of these contracts CME will permit block
trading pursuant to Rule 526 (Block Trades) in these contracts.
19
In Depth
August 2015
Editorial
Description
Summary
MarketID
Petroleum
The following new markets have been added to support this data:
Settlement Method
Financial
Financial
Financial
Option Type
European
European
European
Contract Size
1000 Barrels
1000 Barrels
1000 Barrels
Listing Schedule
Current year+5
consecutive years
Minimum Price
Fluctuation
$0.01/barrel
$0.01/barrel
$0.01/barrel
$10.00
$10.00
$10.00
October 2015
October 2015
October 2015
10
10
10
Termination of Trading
Market
Analysis
Data
Vendors
Venue
Weather and
Emissions
1130
Finance
1129
Softs and
Metals
1128
Coal
Rule Chapter
Nat Gas
XAO
Petroleum
LRO
Power
WJO
In Depth
20
Guest
Feature
ZEMA collects more than 100 regular reports from CME, including more than 20 on petroleum and other liquids. To learn
more about ZEMAs extensive data coverage, visit www.ze.com/the-zema-solutions/data.
August 2015
Editorial
Commodity Code
Summary
Contract Title
Petroleum
LLDPE 1608
PVC 1608
Power
Contract
Petroleum
Nat Gas
Effective January 15, 2016, Platts is proposing to discontinue all daily, weekly and monthly
Northwest European, Italy and Singapore visbreaking yields, netbacks and margins. Platts
intends to discontinue these visbreaking prices because they do not reflect current refining
configurations in the respective regions.
Market
Analysis
Guest
Feature
21
In Depth
Arab Heavy
Arab Light
Arab Medium
Azeri Light
Basrah Light
Es Sider
Iran Heavy
Iran Light
Kirkuk
Saharan Blend
Suez Blend
Urals
Zuetina
Data
Vendors
Arab Heavy
Arab Light
Arab Medium
Azeri Light
Basrah Light
Brent
Ekofisk
Flotta Gold
Forties
Gullfaks
Iran Heavy
Iran Light
Kuwait
Statfjord
Urals
Weather and
Emissions
Italy Crude:
Finance
Softs and
Metals
These prices are published on Platts Global Alert pages 1812, 1822, 2812, 1814,
1824, and 2814. The daily prices are also published in the Crude Oil Marketwire, and the
weekly and monthly prices in Oilgram Price Report. The prices are also published in Platts
Market Data.
Coal
The current visbreaking yield models reflect a topping configuration, primarily crude units,
and reformers. Refiners in these regions have increasingly added catalytic crackers, which are
already reflected in the cracking yields, netbacks, and margins. Platts will continue to publish
these cracking prices.
August 2015
Editorial
Starting August 17, 2015, the Dalian Commodity Exchange (DCE) has
listed the following contracts for trading:
Summary
Petroleum
Editorial
Power
Kuwait
Minas
Murban
Oman
Qatar Land
Qatar Marine
Tapis
Summary
Arab Heavy
Arab Light
Arab Medium
Attaka
Das Blend
Dubai
Duri
Petroleum
Singapore Crude:
Petroleum
Nat Gas
Weather and
Emissions
Data
Vendors
Market
Analysis
BHP Billiton has shipped its final Stybarrow crude cargo from the oil field off Western
Australia. The field, owned 50:50 by a joint venture between BHP Billiton and Woodside
Petroleum, have produced a total of nearly 60 million barrels. The field started up producing
at close to 80,000 b/d, but output had fallen to 3,476 b/d by the first quarter of 2015,
according to data from Woodside.
In Depth
22
Guest
Feature
In the interim period, Stybarrow crudes spot price will be assessed based on its gross product
worth using the last known crude assay and yields, and values relative to other similar crudes
in the region. For a complete list of all affected assessments and their PGA codes, please see
the table below.
August 2015
Finance
Softs and
Metals
Zarzaitine, which is produced in Algeria, is delivered via pipeline to the Tunisian port of La
Skhirra in the Mediterranean where it is then loaded for export. Loadings of the grade currently
stand at around 30,000 b/d, equivalent to around a single cargo per month. The grade is
currently traded via tender approximately a full month in advance of loading and is not
regularly traded on a spot basis.
Coal
Platts currently assesses FOB La Skhirra Zarzaitine on a daily basis, reflecting cargoes of
between 60,000-140,000 mt loading out of the Mediterranean port of La Skhirra, in Tunisia.
Currently, Platts publishes both a FOB La Skhirra Zarzaitine differential assessment (AALOY00)
and an outright assessment (AAHMO00). These assessments currently appear on
Platts Global Alert page MH1234, in the Platts Crude Oil Marketwire, and Platts Oilgram
Price Report.
AAXQC00
AAPDP00
AAPDO00
AARAH03
AARAG03
AAXCQ03
AAPDP03
AAPDO03
Petroleum
AARAI00
Power
Nat Gas
Coal
As of October 1, 2015, Platts confirms that it will discontinue its CIF Augusta Kumkol
outright and differential assessments. Platts is discontinuing these assessments due to the
conclusion of Kumkol exports out of the Black Sea.
Softs and
Metals
Finance
Platts currently assesses CIF Augusta Kumkol on a daily basis, reflecting cargoes of between
30,000-100,000 mt loading out of the Black Sea and delivered into the Mediterranean.
Currently, Platts publishes both a CIF Augusta Kumkol differential assessment (AALOW00)
and an outright assessment (AAHMP00). These assessments currently appear on
Platts Global Alert page MH1220 and in the Platts Crude Oil Marketwire.
Weather and
Emissions
Kumkol, which is produced in Kazakhstan, was previously delivered via rail to the Black Sea
port of Batumi in the Black Sea where it was then loaded for export. Loadings of the grade
once averaged some 170,000 mt a month, but volumes have been gradually declining over
the last several years and have been averaging below 30,000 mt per month for more than a
year. Exports of the grade are expected to halt completely in 2015.
Data
Vendors
Market
Analysis
Guest
Feature
23
In Depth
August 2015
Editorial
AARAH00
Summary
Assessment
Petroleum
Code
These assessments were also published in the Platts Petrochemical Alert on page 339 and
page 234.
Editorial
Summary
Petroleum
This assessment was listed under the following codes in the Platts price database:
Power
Petroleum
Nat Gas
Affected assessments:
MEK FOB USG Weekly PHADQ00 PHAYT03
MEK DER US Domestic Weekly PHADT00 PHAYU03
Coal
Softs and
Metals
Finance
This assessment was listed under the following codes in the Platts price database:
Data
Vendors
Platts last published a weekly US mixed xylene contract assessment in January 2015, when a
settlement was last disclosed by the parties involved and verified per Platts methodology.
Weather and
Emissions
The assessment was also published in the Platts Petrochemical Alert on page 329
and page 234.
See the original announcement.
Guest
Feature
24
In Depth
August 2015
Summary
Editorial
Petroleum
Power
Petroleum
PA-code
Continuous
Description
forward
Category
Frequency
Coal
Price
type
>Crude>North
America>US Gulf coast
Quarterly
PA5000281 1, 2, 8 0
>Crude>North
America>US Gulf coast
Weekly
PA5000449 1, 2, 8 0
>Crude>North
America>US Gulf coast
Weekly
PA5001238 4, 49
Weekly
>Crude>North
America>US Gulf coast
Monthly
>Crude>North
America>US Gulf coast
Quarterly
>Crude>North
America>US Gulf coast
Weekly
PA5001240 4, 49
PA5001241 4, 49
Guest
Feature
Market
Analysis
PA5000143 1, 2, 8 0
Data
Vendors
Monthly
Weather and
Emissions
>Crude>North
America>US Gulf coast
Finance
Softs and
Metals
PA5000018 1, 2, 8 0
PA5001239 4, 49
Nat Gas
Effective August 21, 2015, Argus stopped the following codes in the DAGM data
modules in the DAGM folder of the ftp.argusmedia.com server. The following codes
have time stamps of 2, WTI as their differential basis, and are in USD/bl.
In Depth
August 2015
Category
Frequency
PA0000114
1, 2, 3, 6, 7, 8
Eugene Island
month
Daily
Daily
Daily
PA0004058
49
Nat Gas
4, 49
Petroleum
PA0003355
Eugene Island
weighted average
month
Eugene Island MTD
weighted average
month
Power
Description
Editorial
Price type
Summary
PA-code
Petroleum
Furthermore, effective August 25, 2015, Argus discontinued the following codes in the DHC &
DHCA data modules in the DCRDEUS folder of the ftp.argusmedia.com server.
These codes have time stamps of 2, continuous forwards of 1, WTI as their differential basis,
and are in USD/bl.
PA0003396
1, 2, 3
Druzhba Czech
monthly price
Frequency
Monthly
>Crude>RussiaCaspian>Druzhba
Finance
PA-code
Softs and
Metals
Weather and
Emissions
PA Code
Price
Type
Continuous
Description
forward
Category
Frequency
PA5000077 8
PA5000201 8
>Products>Gasoil/
Quarterly
Diesel/Heating oil>Russia
26
In Depth
August 2015
>Products>Gasoil/
Monthly
Diesel/Heating oil>Russia
Guest
Feature
Market
Analysis
PA5000076 8
Data
Vendors
As of July 31, 2015, Argus stopped the following series, which have time
stamps of 6. These series are in the DAGM data module in the DAGM folder
of the ftp.argusmedia.com.
1, 2, 3, 6,
0
7, 8
>Products>Gasoil/
Weekly
Diesel/Heating oil>Russia
PA5000361
1, 2, 3, 6,
0
7, 8
>Products>Gasoil/
Weekly
Diesel/Heating oil>Russia
>Products>Gasoil/
Weekly
Diesel/Heating oil>Russia
PA5000508 8
>Products>Gasoil/
Weekly
Diesel/Heating oil>Russia
Petroleum
Power
PA5000507 8
Editorial
PA5000360
Summary
Petroleum
PA5000202 8
Nat Gas
As well, the following series are in the the DAGM data module in the DAGM folder
of the ftp.argusmedia.com.
1, 2,
6, 7
Weekly
PA5001266
1, 2,
6, 7
Weekly
Coal
PA5001265
Softs and
Metals
Furthermore, the following series are in the DLP files in the DEURO folder
of ftp.argusmedia.com.
Finance
1, 2, 6, 7 0
>Products>Gasoil/Diesel/Heating
Daily
oil>Russia
PA0000886
1, 2, 6, 7 0
>Products>Gasoil/Diesel/Heating
Daily
oil>Russia
PA0002308
1, 2
>Products>Gasoil/Diesel/Heating
Daily
oil>Russia
PA0008682
1, 2, 8
>Products>Gasoil/Diesel/Heating
Monthly
oil>Russia
PA0008683
1, 2, 8
>Products>Gasoil/Diesel/Heating
Monthly
oil>Russia
Weather and
Emissions
PA0000885
Data
Vendors
Market
Analysis
Guest
Feature
27
In Depth
August 2015
Weekly
PA5000863
1, 2,
0
6, 7
>Products>Gasoil/Diesel/
Heating oil>Russia
Weekly
PA5000864
1, 2,
0
6, 7
Weekly
Petroleum
1158
D43
1161
D53
1164
D63
Softs and
Metals
Contract Name
Coal
Contract Code
Nat Gas
On July 27, 2015, the New York Mercantile Exchange, Inc. (NYMEX) delisted
three Renewable Identification Number (RIN) futures contracts as noted in the table below.
These contracts were listed for trading on CME Globex and for submission for clearing via CME
ClearPort. There was no open interest in the contracts.
Rule Chapter
Power
Editorial
1, 2 0
Summary
PA5000841
Petroleum
And finally, the following series are in the dfsue files in the DFSUE folder
of ftp.argusmedia.com.
Finance
Rulebook Chapter
SFC
Singapore Fuel Oil 180CST (Platts) Brent Crack Spread Futures 213
Data
Vendors
This contract was listed for trading on CME Globex and for submission for clearing through
CME ClearPort.
Weather and
Emissions
Commodity Code
Market
Analysis
Guest
Feature
28
In Depth
August 2015
Summary
Editorial
Natural Gas
Power
Petroleum
Nat Gas
Coal
On August 7, 2015, the Energy Department announced that it has issued a final
authorization to American LNG Marketing LLC (American LNG) to export domestically
produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement
(FTA) with the United States.
Finance
The Energy Department conducted an extensive review of the American LNG application.
Among other factors, the Department considered the economic, energy security, and
environmental impacts and determined that exports at a rate of up to 0.008 Bcf/d for
a period of 20 years was not inconsistent with the public interest.
Weather and
Emissions
Market
Analysis
Data
Vendors
Guest
Feature
Platts is proposing to publish on a daily basis the value of LNG on a DES Salvador de Bahia
basis, based on the existing Platts East Atlantic Marker (EAM) plus the freight to Salvador de
Bahia, Brazil.
29
In Depth
August 2015
Softs and
Metals
American LNG is authorized to export LNG up to the equivalent of 0.008 billion cubic feet per
day (Bcf/d) of natural gas for a period of 20 years from the liquefaction facility located near
Medley, Florida in Miami-Dade County, Florida using approved ISO LNG containers.
Power
Petroleum
The ZEMA graph below shows forecasted gross imports and exports of LNG to the
United States up until December 2016. Data: EIA Forecast STEO NG Supply,
Consumption & Inventory. The storage volume data has been represented by the graph, which
can be easily applied as one of ZEMAs many visualization options, and graphs can be viewed
instantly as the analytics are built. To learn more about how ZEMA can help with your data and
analysis needs, book a complimentary ZEMA demonstration.
Editorial
Summary
Natural Gas
The netforward value will be published in US dollar per million British thermal units
($/MMBtu) each London business day, corresponding with the EAM, in the LNG Daily
publication and Platts Natural Gas Alert. In addition Platts will publish a number of
corresponding price comparisons for relevant markets and competing fuels.
Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
Effective August 31, 2015, Platts added two new assessments to its daily and
monthly price surveys.
1. Transco, Zone 6 non-NY South:
Market
Analysis
Platts has seen consistent price disparities between gas delivered north of station 195 and
gas delivered south of station 195. To bring more price transparency to the region, Platts will
start assessing prices for gas delivered south of station 195.
The Transco, Zone 6, non-NY South specifications appears as follows:
30
In Depth
August 2015
Guest
Feature
Transco, Zone 6 non-NY South (daily and monthly survey) Deliveries from Transcontinental
Gas Pipeline from the start of zone 6 at the Virginia/Maryland border to Station
195 in York, Pennsylvania.
Power
Finance
HHL
Minimum price
fluctuation
The price quotation convention shall be One tenth of a cent ($0.001) per MMBtu;
minimum price fluctuation may vary by trade type. Please see Table in Resolution 1
to this Chapter 18
31
In Depth
August 2015
Guest
Feature
Symbol
Market
Analysis
A monthly cash settled Exchange Futures Contract based upon the monthly price
published by NYMEX for the location specified in Reference Price A
Data
Vendors
Description
Weather and
Emissions
Effective September 28, 2015, ICE Futures US will list three new financial
natural gas futures and options contracts for trading. Each of the following is
for 25,000 MMBtus, cash settled in USD.
Henry LD1 Fixed Price Future 25K
Softs and
Metals
ZEMA collects more than 100 natural gas data reports from Platts alone. To learn more about ZEMAs vast data library,
visit www.ze.com/the-zema-solutions/data-coverage.
Coal
Nat Gas
The Tennessee Zone 4 Station 313 location appears in the Prices of Spot Gas Delivered to
Pipelines table in Inside FERCs Gas Market Report; Energy Trader and Gas Daily Price Guide;
in the Appalachia section of Gas Dailys Daily Price Survey table; and
Platts Natural Gas Alert pages 417, 490 and 511. Additionally, it appears in the Bidweek
Physical Basis Prices Delivered to Pipelines table in Inside FERCs Gas Market Report.
Petroleum
The Transco, Zone 6 non-NY South location appears in the Northeast section of the
Market Center Spot Gas Prices table in Inside FERCs Gas Market Report; Energy Trader and
Gas Daily Price Guide; in the Citygates section of Gas Dailys Daily Price Survey table; and
Platts Natural Gas Alert pages 433, 495 and 516. Additionally, it appears in the Northeast
section of the Market Center Bidweek Physical Basis Prices table in Inside FERCs Gas
Market Report.
Name
Editorial
Trading in the daily and monthly markets at Tennessee, Zone 4-313 Pool has
demonstrated a level that will support a robust pricing location.
Summary
Natural Gas
There has been no change to the existing Platts listing for Transco, Zone 6 non-NY, which
is composed of all non-NY delivered transactions both north and south of Station 195.
Listing cycle
Four Business Days prior to the first calendar day of the Contract Period
Name
Description
Symbol
HHP
Minimum price
fluctuation
The price quotation convention shall be One hundredth of a cent ($0.0001) per
MMBtu; minimum price fluctuation may vary by trade type. Please see Table
in Resolution 1 to this Chapter 18
Listing cycle
At 2:30pm EPT on the fourth Business Day prior to the first calendar day
of the Contract Period
Market
Analysis
The price quotation convention shall be One hundredth of a cent ($0.0001) per
MMBtu; minimum price fluctuation may vary by trade type. Please see Table in
Resolution 1 to this Chapter 18
Data
Vendors
Minimum price
fluctuation
Weather and
Emissions
HHP
Finance
Symbol
Softs and
Metals
A monthly cash settled Exchange Futures Contract based upon the monthly price
published by NYMEX for the location specified in Reference Price A
Coal
Description
Nat Gas
Petroleum
Name
Power
Three Business Days prior to the first calendar day of the Contract Period
Guest
Feature
32
In Depth
August 2015
Editorial
Summary
Natural Gas
Listing cycle
Summary
Coal
Editorial
Power
Softs and
Metals
Coal
Platts weekly coal assessments for the US physical market are published in the Weekly Price
Survey, Traditional Physical Market table in Coal Trader on the final business day of the week.
Nat Gas
The specifications for the coal are an average heat content of 11,800 Btu/lb with typical
sulfur content of 5 lbs SO2/MMBtu FOB barge. The price is reported in $/st. The weekly
assessment reflects the price of such coal in the US physical market for three forward quarters
and one forward calendar year. The respective codes are CIGQ001; CIGQ002; CIGQ003;
and CIGY001.
Petroleum
Coal
ZEMA collects more than 20 different coal records from Platts alone. For a complimentary demo on how ZEMAs data
coverage can be specialized for your companys needs, visit www.ze.com/book-a-demo.
Finance
The ZEMA graph below shows weekly coal prices for different US locations in comparison
to total US coal production. Data: EIA Weekly Coal Prices and EIA Coal Production Weekly
reports. Leverage ZEMAs sophisticated analytical functionalities to make more informed
decisions about coal. To learn more, book a complimentary ZEMA demonstration.
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
33
In Depth
August 2015
Summary
Coal
Editorial
Power
Petroleum
Nat Gas
Starting August 17, 2015, the Dalian Commodity Exchange (DCE) has
listed the following contracts for trading:
Finance
Softs and
Metals
Contract
Weather and
Emissions
Data
Vendors
Due to evolving market conditions, Platts believes there is no longer sufficient interest or an
appreciable market to accurately assess the following products:
Market
Analysis
Illinois Basin 10,500 Btu/lb, 6+ lbs SO2/MMBtu, FOB Rail coal; affected codes are
CIDQ001, CIDQ002, CIDQ003 and CIDY001.
Illinois Basin 11,500 Btu/lb, 2.5 lbs SO2/MMBtu, FOB Rail coal; affected codes are
CAJQ001, CAJQ002, CAJQ003 and CAJY001.
See the original announcement.
Guest
Feature
34
In Depth
August 2015
Summary
Editorial
Power
Petroleum
Nat Gas
SOFTS
Coal
35
In Depth
August 2015
Guest
Feature
The assessments will roll forward in line with expiry of the ICE Sugar No. 11 Futures monthly
contract. For example, February 29, 2016 expiry day for the March Sugar No. 11 Futures
contract would be the final assessment day for the March-May 2016 shipment window. On
March 1, 2016, the curve would roll forward with May-Jul 2016 the new front window,
Jul-Sep 2016 the second window, and Oct-Dec 2016 added as the third window.
Market
Analysis
Cargo assessments will reflect parcels of 12,000 mt, though FOB cargoes of between
8,000 mt and 12,000 mt will be considered. Loading locations FOB Bangkok, Laem
Chabang, Koh Si Chang and Sri Racha will be considered.
Data
Vendors
The forward physical curve would adopt the same underlying terms and conditions reflected in
the existing spot assessments. It would reflect a minimum polarization on a wet basis of
98.5 degrees at the time of shipment.
Weather and
Emissions
Platts currently publishes bids, offers and trades heard in the market for these shipment
cycles. The proposed forward physical curve would create formal assessments for these
windows. Platts would continue to publish heards gathered from the market and the new
assessments would add to Platts existing spot Thai Hi-Pol assessments.
Finance
The new assessments would reflect existing trading patterns where Thai Hi-Pol sugar is traded
forward over four 75-day shipment windows. As the calendar year runs, these are March 1 to
May 15, May 1 to July 15, July 1 to September 15, and October 1 to December 15.
Softs and
Metals
Softs and
Metals
Coal
For Chicago, prices would reflect 22.6 mt (25 short tons) truck delivered to the Channahon,
Illinois, rail head for next week delivery. For New Orleans, prices would reflect CIF deliveries of
1,360 mt (1,500 short tons) basis New Orleans for next month loading.
Nat Gas
Effective October 1, 2015, Platts intends to launch two new daily price assessments for dried
distillers grains with solubles (DDGS) in the US Midwest and Gulf Coast. The new assessments
would reflect export quality DDGS with a minimum protein content of 25%, a minimum color
of 50 (according to the Hunter L test), a minimum of 6% fat, and a moisture level in the range
of 10% to 12%, standardized to 11.5%.
Petroleum
Power
ZEMA collects several sugar-based reports from Platts and IHS. To learn more about ZEMAs data coverage, visit www.
ze.com/the-zema-solutions/data-coverage.
Editorial
Summary
The assessments would be published in the Kingsman Daily Sugar Market Report, on
Platts Agriculture Alert and in Platts Market Data. Symbols will be announced at a later date.
The assessments would be published as a premium to the relevant ICE Sugar No. 11 Futures
contract and as an outright price at 1630 London time. The outright price would not include
an additional polarization premium.
Finance
Weather and
Emissions
On October 1, 2015, Platts intends to launch a new daily spot physical assessment for
European feed wheat and corn, on a CIF Netherlands basis. The daily assessments would
reflect the daily traded or tradable value of cargoes of CIF corn and CIF feed wheat, basis the
Netherlands at 16:30 London time.
Data
Vendors
Market
Analysis
ZEMA regularly collects more than 100 data reports on softs. To learn more about ZEMAs extensive data coverage, visit
www.ze.com/the-zema-solutions/data-coverage.
Guest
Feature
36
In Depth
August 2015
Editorial
Power
Petroleum
Summary
Blockboard 1608
Fiberboard 1608
Softs and
Metals
Coal
Contract
Nat Gas
Starting August 17, 2015, the Dalian Commodity Exchange (DCE) listed the
following contracts for trading:
Finance
Effective December 21, 2015, Platts will discontinue its FOB Singapore ethanol assessments
including the daily assessment (AAWAD00), and weekly and monthly averages (AAWAD04;
AAWAD03).
Data
Vendors
The discontinuation of these assessments is proposed due to changes in typical spot market
trade flows, as participants rarely break bulk ethanol cargoes in Singapore anymore.
Weather and
Emissions
Market
Analysis
Guest
Feature
37
In Depth
August 2015
Summary
Editorial
Power
Petroleum
Nat Gas
As of August 13, 2015, Argus made changes to the price series in the
Argus FMB North American Fertilizer publication and data module. These changes apply to
data in the DFNA module in the DFNA folder onftp.argusmedia.com
The description for the following code has changed:
Old description
New description
PA0010781
Coal
Code
Softs and
Metals
Metals
Finance
Weather and
Emissions
On October 7, 2015, Platts intends to publish a weekly spot CFR China blast
furnace (BF) iron ore pellet premium assessment. This assessment would be published on
Wednesdays, or the nearest prior working day, in case of a public holiday in Singapore.
Platts is proposing to publish this value in the daily iron ore assessment table in SBB Steel
Markets Daily on page 3 and on page MW1105 of PMA and to database the value, making it
available in data products under the category SI.
Market
Analysis
The proposed launch is in response to market request for greater informational transparency
of pellet pricing and premiums in the seaborne spot market and a notable increase in spot
liquidity for iron ore pellet imports into China, resulting from tighter environmental regulations.
Data
Vendors
The assessment would be published on a $/dry metric ton basis and is intended
to reflect the premium over the basis fines value plus VIU adjustment, expressed in the most
commonly traded blast furnace pellet grades and brands imported into China.
Guest
Feature
In Depth
August 2015
February 2016
October 2015
April 2016
December 2015
June 2016
March 2016
August 2016
May 2016
November 2016
Nat Gas
Petroleum
Power
Contracts for further expiries will be launched as per the contract launch calendar below.
Currently, Silver Hedge 30 KG futures contracts expiring in the months of August 2015 and
November 2015 are available for trading.
Editorial
Effective August 10, 2015, the National Commodity & Derivatives Exchange Ltd.
(NCDEX) has launched the Silver Hedge 30 KG (Symbol: SILVERHEDG), expiring
in February 2016.
Summary
Coal
Softs and
Metals
Data
Vendors
ZEMA collects more than 200 metals records. To receive a complimentary ZEMA demonstration,
visit www.ze.com/book-a-demo.
Weather and
Emissions
Finance
The renminbi is seeing rapid adoption internationally. According to Swift data, the Chinese
currency is already one of the top-five global payment currencies. The initiative comes in
response to calls from LME Clear members to extend the list of accepted cash collateral to
include CNH. Chinese-owned BOCI Global Commodities will be the first LME Clear Member to
submit CNH collateral.
39
In Depth
August 2015
Guest
Feature
Market
Analysis
Summary
Editorial
Power
The ZEMA graph below shows a forecast of copper spot prices up to January 2019. Data: LME
Official Prices report and NYMEX Comex Futures report. To learn more about data available
through ZEMA, book a complimentary ZEMA demo.
Petroleum
Nat Gas
Coal
Softs and
Metals
Description
prompt
spot
prompt
spot
prompt
spot
prompt
spot
prompt
spot
PA0015185
40
In Depth
August 2015
Guest
Feature
spot
Market
Analysis
prompt
Data
Vendors
PA0015183 Ferrous scrap HMS 1-2 75/25 fob Rotterdam 4-6 weeks
Weather and
Emissions
PA-code
Finance
Effective July 22, 2015, Argus removed a possible ambiguity in the timing description
for the following price series in the Argus Black Sea Steel publication and data module.
The following PA code details now appear in the DBlackSeaSteel module in the
DATA/DBlackSeaSteel folder on ftp.argusmedia.com.
prompt
spot
prompt
spot
prompt
spot
prompt
spot
prompt
spot
prompt
spot
PA0016047 Iron Ore pig iron fob Russia Black Sea 2 - 6 weeks
prompt
spot
PA0016048 Iron Ore pig iron fob Ukraine Black Sea 2 - 6 weeks
prompt
spot
prompt
spot
prompt
spot
prompt
spot
prompt
spot
prompt
spot
prompt
spot
prompt
spot
prompt
spot
PA0016050
PA0016052
Market
Analysis
Data
Vendors
spot
Weather and
Emissions
prompt
Finance
Softs and
Metals
spot
Coal
prompt
Nat Gas
Petroleum
spot
Power
prompt
Editorial
Summary
Description
PA-code
Guest
Feature
41
In Depth
August 2015
Summary
Editorial
Finance
Power
Petroleum
Nat Gas
Coal
Effective August 30, 2015, the Chicago Mercantile Exchange Inc. (CME) listed
additional expiration months in Serial options and Serial Mid-Curve options on CME
Three-Month Eurodollar (ED) futures (CME Rulebook Chapter 452A), within the currently
established listing cycle.
Weekly
16
2-Year MC
3-Year MC
4-Year MC
5-Year MC
Data
Vendors
Standard
Weather and
Emissions
Market
Analysis
Guest
Feature
A Serial option on ED futures is specified so as to expire in a given month that is not in the
March Quarterly cycle, (i.e., January, February, April, May, July, August, October, or
November), for exercise into ED futures for delivery in the next following month in the March
Quarterly cycle (i.e., March, June, September, or December).
Similarly, a Serial Mid-Curve option on ED futures is specified to expire in a given month not
in the March Quarterly cycle, for exercise into ED futures for delivery in the month occurring a
42
In Depth
August 2015
Finance
March Quarterly
Softs and
Metals
CME enabled trading in such Serial options and all such Serial Mid-Curve options for expiry in
each of the nearest four months not in the March Quarterly cycle, as described in the
table below.
Petroleum
Coal
The VIX Index is based on real-time prices of options on the S&P 500 Index (SPX) and is
designed to reflect investors consensus expectations for 30-day stock market volatility.
Standard VIX futures and options expire monthly. Weekly VIX options expirations will offer
convergence to the VIX cash index four to five times per month, instead of once a month.
Nat Gas
The listing of VIX Weeklys options adds another tool to an array of long- and short-term
trading strategies that can be executed on the VIX Index, the worlds premier benchmark of
equity market volatility. The launch of VIX Weeklys options follows that of VIX Weeklys futures,
which were introduced at the CBOE Futures Exchange (CFE) on July 23.
Finance
Softs and
Metals
CBOE may list up to six consecutive weekly expirations for VIX options and futures. New weekly
expirations for VIX futures and options are listed on Thursdays (excluding holidays) and expire
on Wednesdays. Like VIX Weeklys futures, the VIX Weeklys options will be available during
regular and extended trading hours.
Weather and
Emissions
Below are descriptions of the CBOE Eurekahedge Volatility Indexes. Note: the number of funds
within the indexes can vary throughout the month as funds disseminate returns.
In Depth
43
Guest
Feature
The CBOE Eurekahedge Volatility Indexes, which will be updated monthly, comprise a broad
array of US- and international-based funds in the volatility space.
Market
Analysis
The four new indexes, the first of their kind, were created to meet the demands of institutional
hedge fund investors seeking benchmarks that measure the performance of distinct
volatility-based strategies. CBOE Eurekahedge Volatility Indexes group specific funds into one
of the four indexes that best correspond with a particular strategy.
Data
Vendors
On August 18, 2015, CBOE announced it has launched four new benchmark
indexes in collaboration with Eurekahedge, a Singapore-based hedge fund research
and data collection company, that measure the performance of hedge funds that employ
volatility-based investment strategies.
August 2015
Power
ZEMAs sophisticated market data management tools collect hundreds of financial data reports, including reports from
CME. To learn how you can begin building your own library of financial data, book a complimentary ZEMA demonstration
at www.ze.com/book-a-demo.
Editorial
Summary
Finance
prescribed number of years after the next following month in the March quarterly cycle.
Serial Mid-Curve options comprise One-Year Mid-Curve Options, Two-Year Mid-Curve
Options, Three-Year Mid-Curve Options, Four-Year Mid-Curve Options, and Five-Year
Mid-Curve Options.
Editorial
Power
Nat Gas
Coal
CBOE Eurekahedge Tail Risk Index (Bloomberg Ticker: EHFI453) The tail risk index is an
equally weighted index of eight constituent funds designed to provide a broad measure of
the performance of underlying hedge fund managers who specifically seek to achieve
capital appreciation during periods of extreme market stress.
Petroleum
CBOE Eurekahedge Relative Value Volatility Index (Bloomberg Ticker: EHFI452) The
relative value volatility index is an equally weighted index of 39 constituent funds designed
to provide a broad measure of the performance of underlying hedge fund managers that
trade relative value or opportunistic volatility strategies. Managers utilizing the strategy can
pursue long, short, or neutral views on volatility with a goal of positive absolute return.
ZEMA collects many records from the Chicago Mercantile Exchange regarding Chicago Board of Trade financial
information, including the CBOT Futures daily price record. To learn more about how to transform this collected data into
useful market intelligence, visit www.ze.com/the-zema-suite/market-analyzer.
Softs and
Metals
Finance
In Depth
44
Guest
Feature
The values for each of the indexes are published every 15 seconds throughout the trading day
and can be accessed on the CBOE website and through all quote vendors.
Market
Analysis
The new benchmark indexes will use popular S&P 500 Index (SPX) Weeklys options to create
new versions of two of CBOEs flagship strategy benchmark indexes the CBOE S&P 500
BuyWrite Index (BXM) and the CBOE S&P 500 PutWrite (PUT) Index as well as completely
new risk-managed option selling strategies featuring S&P 500 Index (SPX) and CBOE Volatility
Index (VIX Index) options.
Data
Vendors
Effective July 29, 2015, CBOE announced that it has created 10 new options-based strategy
performance benchmark indexes that are designed to highlight the long-term utility of options
as risk management and yield enhancing investment tools. CBOE began disseminating
intra-day values for the new benchmarks beginning August 3, 2015.
Weather and
Emissions
August 2015
Summary
CBOE Eurekahedge Long Volatility Index (Bloomberg Ticker: EHFI451) The long volatility
index is an equally weighted index of 10 constituent funds designed to provide a broad
measure of the performance of underlying hedge fund managers who take a net long view
on implied volatility with a goal of positive absolute return.
Finance
CBOE Eurekahedge Short Volatility Index (Bloomberg Ticker: EHFI450) The short volatility
index is an equally weighted index of 15 constituent funds designed to provide a broad
measure of the performance of underlying hedge fund managers who take a net short view
on implied volatility with a goal of positive absolute return. The strategy often involves the
selling of options to take advantage of the discrepancies in current implied volatility versus
expectations of subsequent implied or realized volatility.
Editorial
Power
Petroleum
UDS enable market participants to customize and create the precise calendar spreads with
tail percentages they wish to trade in real time. UDS for futures will be supported alongside
exchange-defined futures spreads utilizing the following CME Globex codes:
Summary
Effective August 17, 2015, the Board of Trade of the City of Chicago, Inc. (CBOT) will enable
a new User-Defined Spreads (UDS) type for CBOT Treasury Futures Calendar Spreads with
Tails on the CME Globex electronic trading platform, which will be available for the September
2015 to December 2015 rollover.
Finance
Nat Gas
Coal
Softs and
Metals
Asset class
ISIN
DE000ETFL474
0.40%
Distribution policy
distributing
Benchmark
Data
Vendors
Weather and
Emissions
ETF name
Finance
Since August 18, 2015, a new equity index ETF issued by Deka Investment GmbH has been
tradable on Xetra and Brse Frankfurt.
45
In Depth
August 2015
Guest
Feature
Market
Analysis
The Deka Oekom Euro Nachhaltigkeit UCITS ETF enables investors to participate in the
performance of companies from the Solactive Eurozone Sustainability Index. The index
comprises 30 blue chip companies from the euro zone with Prime Status awarded by oekom
research AG. These are companies with high corporate rankings for social and environmental
sustainability within their sectors.
Summary
Editorial
Finance
Power
Petroleum
Asset class:
ISIN:
LU1079841273
0.65%
Distribution policy:
accumulating
Benchmark:
Softs and
Metals
Coal
ETF name:
Weather and
Emissions
Finance
The new Ossiam ETF enables investors to participate in the performance of the four most
undervalued US sectors. The sectors are selected monthly based on the relative CAPE ratio
and 12-month momentum. CAPE stands for cyclically adjusted price-earnings and calculates
the ratio of the share price to the average of the past ten years of earnings, adjusted
for inflation.
Data
Vendors
ZEMA presently collects information from Deutsche Brse about derivatives products. To learn more about how ZEMA
can leverage Deutsche Brse market data, visit www.ze.com/the-zema-suite.
Market
Analysis
Guest
Feature
Effective July 21, 2015, Thomson Reuters announced the release of the
StarMine Combined Alpha Model (CAM), a model that combines all the available
StarMine equity alpha models into one comprehensive alpha-generating signal. The weights
assigned to each model vary by region. Thus, StarMine CAM recognizes the fact that some
regions, such as the US and Japan, are more value focused while in Developed Europe and
Asia ex-Japan momentum plays a larger role. The model intelligently handles missing data
and makes use of all available StarMine alpha models for a given security.
46
In Depth
August 2015
Nat Gas
Effective July 28, 2015, Xetra/Brse Frankfurt: A new equity index fund issued by Ossiam has
been tradable in Deutsche Brses XTF segment on Xetra and Brse Frankfurt since Tuesday.
Power
On July 21, 2015, Thomson Reuters announced the launch of intraday evaluated pricing
capabilities, derived by Thomson Reuters Pricing Service (TRPS). All Government and
Corporate bonds will be updated throughout the day, Monday through Friday, by the global
team of over 150 TRPS evaluators.
Nat Gas
Coal
Petroleum
Increased regulatory requirements are escalating the demand for greater insight into the value
of investment and trading portfolios. These valuations typically have been calculated by using
end-of-day pricing from the day prior; however, the ability to use intraday pricing makes net
asset value (NAV) and profit and loss (P&L) computations more accurate throughout the day
with up-to-the-minute pricing. Supporting market data, such as corresponding benchmark
rates and spreads, will be available alongside intraday prices.
Softs and
Metals
ZEMA, ZEs best-in-class data management solution, collects more than 75 records from Thomson Reuters on a
daily basis. ZEMA can collect, display, and analyze data for market participants in any sector. For further information,
visit www.ze.com/the-zema-solutions.
Finance
On August 12, 2015, Eurex and GMX announced that the first trades in GMEXs
Euro-denominated IRS Constant Maturity Future (IRS CMF) have been successfully
executed, cleared and settled. This product has been available for the electronic
arranging of transactions on GMEXs platform with trade confirmation and clearing on Eurex
since August 7.
Guest
Feature
In Depth
47
Market
Analysis
Data
Vendors
The IRS CMF contract provides a lower margin alternative to plain vanilla OTC IRS for
hedging given the increased capital requirements relating to EU Commissions mandatory
central clearing and front loading rules for IRS. The new regulation will likely come into force in
April 2016 with buy-side firms having six months to comply.
Weather and
Emissions
At launch, a number of trading and clearing members have been able to trade and clear
including Bank of America Merrill Lynch, Socit Gnrale, and R.J. OBrien. GMEX and Eurex
are continuing to admit and connect further market participants to trade the IRS CMF
contracts, including large sell-side banks, buy-side firms, futures trading houses, and
derivatives brokers. Additionally, key software and market data vendors have been offering
their services from the start including Trading Technologies, Fidessa, and Bloomberg.
August 2015
Editorial
Summary
Finance
StarMine CAM is currently available through Thomson Reuters Eikon and will be available as a
datafeed through DataScope Select in the near future.
Power
Petroleum
The evaluated bond prices are computed by an independent data vendor, Interactive Data
Corporation, based on its proprietary methodology. This complements the information from
issuers of listed debt securities available on SGXs website. The end-of-day evaluations are
published on a one-day delayed basis.
See the original announcement.
Nat Gas
ZEMAs coal market data management solution easily integrates relevant information with a wide range of CTRM and
ETRM systems. To learn more, book a complimentary ZEMA demonstration at www.ze.com/book-a-demo.
As of July 31, 2015, Bourse de Montral Inc. (the Bourse) and Canadian Derivatives Clearing
Corporation (CDCC) listed for trading the following options and futures contracts:
Softs and
Metals
Finance
Below are the margin intervals for these options and futures contracts:
SXK
3.56%
20,000
SXJ
3.56%
40,000
SXU
5.88%
20,000
SXV
5.88%
40,000
Data
Vendors
Position Limit
Weather and
Emissions
Margin Interval
Coal
Symbol
Editorial
Summary
Finance
Market
Analysis
The following tables are an indication of the months and symbols that will be available
for trading on the futures and months and strike prices that will be available for trading on
the options.
Guest
Feature
48
In Depth
August 2015
SXU
Petroleum
SXK
September
December
March
June
September
December
March
June
Power
Months
$2,480.00
$2,490.00
$2,500.00
$2,510.00
$2,520.00
SXV
August
September
October
December
March
$205.00
$210.00
$215.00
$220.00
$225.00
Finance
SXJ
August
September
October
December
March
Softs and
Metals
Strike Prices
Coal
Symbol Months
Nat Gas
Company name
Editorial
Symbol
Summary
Company name
Finance
New Futures
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
49
In Depth
August 2015
Summary
Editorial
Power
Petroleum
Nat Gas
Coal
In Depth
50
Guest
Feature
August 2015
Market
Analysis
ZEMA regularly collects data from the Environmental Protection Agency, including reports on security prices, treasury bill
auction results, and emissions. To learn more about how ZEMAs powerful data collection engine can be configured to
your specific business needs, book a free demo at www.ze.com/book-a-demo.
Data
Vendors
Weather and
Emissions
The final rule establishes guidelines for states to follow in developing and implementing their
plans, including requirements that vulnerable communities have a seat at the table with other
stakeholders. EPA is proposing a model rule states can adopt, as well as a federal plan that
the EPA will put in place if a state fails to submit an adequate plan. Both the proposed
model rule and federal plan focus on emissions trading mechanisms to make sure utilities
have broad flexibility to reach their carbon pollution reduction goals.
Finance
The Clean Power Plan accelerates the transition to a clean energy future. By 2030, the plan
will cut carbon pollution from the power sector by nearly a third and additional reductions will
come from pollutants that can create dangerous soot and smog. By 2030, emissions of sulfur
dioxide from power plants will be 90% lower, and emissions of nitrogen oxides will be
72% lower, compared to 2005 levels.
Softs and
Metals
Summary
Editorial
Power
Petroleum
The ZEMA graph below shows forecasted US carbon emissions up to December 2016, with a
target set at 400 ppm. Data: EIA Forecast STEO Macroeconomic Energy Indicators. To learn
more about data available through ZEMA, book a complimentary ZEMA demo.
Nat Gas
Coal
Softs and
Metals
Finance
On August 27, 2015, the US Department of the Interior announced that the Block
Island Wind Farm, the United States first commercial-scale offshore wind farm, has
successfully completed its steel in the water construction milestone.
In Depth
51
Guest
Feature
August 2015
Market
Analysis
The wind farm will produce more than 100 million kilowatt hours of clean energy annually, and
Deepwater Wind will sell the electricity through a Power Purchase Agreement to
National Grid, a Rhode Island utility. Project developers estimate the wind farm will reduce
electric costs by 40% for the average ratepayer on Block Island, which currently relies on
Data
Vendors
The facility is expected to provide electricity directly from the wind farm to Block Island.
Because the island uses only 1 megawatt of power in the off-season and 4 megawatts in the
summer peak season, the remaining 90% of the energy produced during the off season will be
sent to other state customers via a 25-mile bi-directional submerged transmission cable
between Block Island and the Rhode Island mainland.
Weather and
Emissions
As part of the Obama Administrations Climate Action Plan, Deepwater Wind is constructing a
five-turbine, 30-megawatt wind farm in Rhode Island State waters about three nautical miles
southeast of Block Island. At 589 feet above sea level, the turbines will be among the tallest
in the world. The project, scheduled to be online in 2016, is expected to power about
17,000 homes.
Continuous
Description
forward
Nat Gas
PA-code
Petroleum
The following new codes will appear from July 27 in the /DAEE folder on the ftp.argusmedia.
com server. These daily assessments possess time stamps of 6, price types of 8, and are in
GBP/MWh.
Power
Effective July 27, 2015, Argus introduced emissions adjusted-spark and dark spreads for UK
market including UK carbon support tax. These values will be in the data file in addition to the
existing emissions adjusted values. The report will show the values including the UK carbon
support tax only.
Editorial
Summary
expensive diesel-powered generators. With the transmission line, Block Island has no need
for backup diesel generators, as it can purchase electricity from National Grid once the cable
is laid.
Category
>Spark spread>Europe>UK
PA0016370 1, 2, 3, 4
>Spark spread>Europe>UK
PA0016371 1, 2, 3, 4
>Spark spread>Europe>UK
PA0016372 1, 2, 3, 4, 5
>Spark spread>Europe>UK
PA0016447 0
>Spark spread>Europe>UK
PA0016448 1, 2, 3
>Spark spread>Europe>UK
PA0016449 1, 2, 3, 4
>Spark spread>Europe>UK
PA0016866 1
>Spark spread>Europe>UK
Coal
PA0016369 0
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
Market
Analysis
ZEMA aggregates more than 40 data reports regarding emissions from around the world. To learn more about ZEMAs
vast data library, visit www.ze.com/the-zema-solutions/data-coverage.
Guest
Feature
52
In Depth
August 2015
Summary
Editorial
Power
Petroleum
Nat Gas
Coal
Softs and
Metals
Finance
Ranges for all contracts would be standardized as follows: +/- 02 euro cent.
See the original announcement.
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
53
In Depth
August 2015
Power
Petroleum
Nat Gas
Coal
Softs and
Metals
Finance
Editorial
Since the last issue of DataWatch, ZE has added multiple data reports, including reports
published by BSP, EIA, EOX Live, Elia, METI, National Grid, PJM, REN, RTE France, Reuters,
and Trade Statistics of Japan. The BSP data covers daily base and Euro-peak auction prices
and volumes as well as hourly auction trading prices and volumes. The Elia reports include
data on generated energy, nominated capacity, physical flows, solar power generation, wind
power generation, and more. The National Grid reports include data on natural gas actual
offtake flows and aggregate day ahead gas flow nominations. These reports, along with many
others added to ZEs data library within the last month, have been implemented in response
to a need for greater data coverage in strategic areas of power, natural gas, fuel, metal,
and currency.
Summary
For 20 years, ZE PowerGroup Inc. (ZE) has consistently kept up to date on the latest in energy
and commodity data changes. ZE collects data spanning oil, natural gas, electricity, weather,
agriculture, emissions, and finance. ZE then provides its clients with access to both public
(free subscription) and private data reports, including reports that are collected based on
clients specific needs.
Weather and
Emissions
Market
Analysis
August 27, 2015 MDA Weather Services offers a variety of data and reports used
throughout the energy, agriculture, and weather markets. In addition to providing the basic
weather data products used by traders in these industries worldwide, MDA goes beyond the
numbers to provide unique datasets tailored for traders in each industry. New and improved
product offerings include:
Data
Vendors
54
In Depth
August 2015
Guest
Feature
Ideal for localized energy interests particularly utilities - with over 40,000 ZIP codes
in the US.
Nat Gas
Archived MDA forecasts are available for those requiring historical forecast and observation
data to tune internal models.
Petroleum
MDAs proprietary super ensemble model incorporates multiple model inputs and uses
them to create a single forecast. The forecast is tuned by taking multiple factors into
account such as recent skill and bias of the input models.
Power
Also ideal for energy interests, MDA possesses hourly weather data for locations across
the world.
Editorial
Summary
Observed parameters include temperature, precipitation, wind speed, dew point, relative
humidity, cloud coverage, wind chill, and heat index.
MDAs proprietary technology takes weather information from weather stations across the
US and interpolates it to ZIP code level while also improving accuracy by compensating for
elevation adjustments.
Coal
Softs and
Metals
August 27, 2015 PetroChem Wire has introduced more than 70 Natural Gas Liquid (NGL)
prices as part of its new NGLs Week newsletter.
Weather and
Emissions
As production sources become more diverse and transportation dynamics more complex,
regional prices have become increasingly dynamic, making traditional price relationships
more volatile. As such, PetroChem Wire now daily assesses prices for E/P mix, propane and
natural gasoline for Conway, KS, as well as ethane and propane for Targa, also at the Mont
Belvieu hub.
55
In Depth
August 2015
Guest
Feature
Market
Analysis
Raw NGL values and fractionation spreads are included for production basins including
National, Eagle Ford, Permian, DJ Basin and Marcellus, providing a more holistic valuation of
the NGL barrel in any given region.
Data
Vendors
A unique grid also shows combinations of implied prices. These include implied ethane prices
from oil, natural gas, ethylene, LLDPE and HDPE, among others.
Power
For more information about PetroChem Wires NGL price series or about the NGLs Week
newsletter, see http://petrochemwire.com/Sample_Issues/NGLs%20Week.html , or contact
Samantha Hartke at Samantha@petrochemwire.com, or 832 330-3340.
Editorial
Natgas-Brent ratio
Natgas-propane ratio
Natgas-PGP ratio
Natgas-PP ratio
Summary
Natgas-WTI ratio
Natgas-ethane ratio
Natgas-ethylene ratio
Natgas-HDPE ratio
Petroleum
Nat Gas
Weather and
Emissions
Data
Vendors
Increasing LPG trade in the Middle East open market has led to the emergence of a new
trading segment, independent of prices set by producers for term contracts. This emerging
market has also boosted transparency in price discovery, allowing global energy and
commodity news and price reporting agency Argus to launch the Argus Middle East Index
(AMEI) this month. AMEI is a daily price for propane and butane sold from Middle East ports
based on market activity.
Market
Analysis
We are delighted to see liquidity developing in this market and hope that the transparency
that Argus brings to the pricing of these spot volumes will serve as a springboard for further
market development, Argus Media chairman and publisher Adrian Binks said.
In Depth
56
Guest
Feature
Argus produces the Argus Far East Index (AFEI), the leading spot daily benchmark price for
delivered LPG cargoes to the northeast Asian market.
August 2015
Finance
More than 1.2mn t of propane and butane has been exported in spot cargoes so far this year
from Middle East ports, compared with about 1mn t for the whole of 2014. LPG buyers in
Asia-Pacific are increasing spot imports from the Middle East while reducing their term
commitments, after the shale revolution allowed US suppliers to increase their market share
in countries such as Japan and South Korea during the past two years.
Softs and
Metals
Singapore, August 6, 2015 LPG volumes traded outside of term agreements in the Mideast
Gulf are on track to double this year compared with 2014, as increasing production from
Qatar and North America gives consumers across Asia-Pacific the option to secure more spot
cargoes available at short notice.
Coal
Summary
Editorial
Power
Petroleum
Nat Gas
The ZEMA graph above shows the price volatility of crude this year as demonstrated by the
prompt-month NYMEX Brent-WTI spread. WTI is represented in red, Brent is represented in
blue, and the Brent-WTI spread is represented by the purple area. Units are in USD/bbl.
Coal
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
The ZEMA graph above shows this months Brent and WTI forward curves in comparison to last
months forward curves, based on NYMEX average settle prices. Units are in USD/bbl.
Market
Analysis
Guest
Feature
57
In Depth
August 2015
Power
Petroleum
Nat Gas
The ZEMA graph above shows the North American natural gas spot prices on NYMEX for Henry
Hub, Transco Zone 6, PG&E Citygate, and Chicago Citygates between August 3-27, 2015.
Units are in USD/MMBtu.
Editorial
Summary
Coal
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
The ZEMA graph above shows the spread between this months Henry Hub natural gas forward
curve and last months forward curve, based off of average settle prices on NYMEX. Units are
in USD/MMBtu.
Market
Analysis
Guest
Feature
58
In Depth
August 2015
Editorial
Power
Petroleum
Summary
Nat Gas
The ZEMA graph above shows average monthly temperatures according to AccuWeather for
San Diego (red line), Chicago (green line), San Antonio (purple line), and New York City (blue
line). The temperatures are in degrees Celsius.
Coal
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
Market
Analysis
The ZEMA graph above shows daily temperatures according to AccuWeather for San Diego
(red line), Chicago (green line), San Antonio (purple line), and New York City (blue line)
between August 1-26, 2015. The temperatures are in degrees Celsius.
Guest
Feature
59
In Depth
August 2015
Petroleum
Nat Gas
Coal
Softs and
Metals
Power
The ZEMA graph above shows day-ahead peak electricity prices between August 3-25, 2015,
as reported by ICE. The red line represents CAISO SP15, the green line represents PJM APS
Zone, the purple line represents ERCOT North 345KV, and the blue line represents
NYSO Zone A. Units are in USD/MMh.
Editorial
Summary
60
Guest
Feature
August 2015
Market
Analysis
The ZEMA graph above shows gold and silver daily prices on CME between July 7 August 25, 2015. The yellow line represents COMEX 100 Gold (USC/toz), the blue line
represents COMEX 5000 Silver (USC), the red line represents the gold 7-day moving average,
and the green line represents the silver 7-day moving average.
Summary
Editorial
Guest Feature
Power
Petroleum
Nat Gas
The US olefins market has seen its share of volatility over the last two months with ethylene
seeing multi-year lows and polymer-grade propylene reversing its traditional premium over
ethylene for a spell, according to benchmark PetroChem Wire prices.
Data
Vendors
This has ultimately led to a narrowing of cash cost margins the cost of producing ethylene
from individual natural gas liquids and uncertainty regarding monthly contract pricing,
among others. These could ultimately have more far-reaching consequences. Major
companies mulling new cracker builds, even those looking at expanding existing facilities,
could rethink their plans.
Market
Analysis
Ethylene
61
In Depth
August 2015
Guest
Feature
The first chink in ethylenes armor came in mid-August when spot ethylene prices hit a six-year
low, first breaking below the 30-cents/pound (cpp) mark and then sinking beneath 25 cpp,
PCW prices show, after spending most of the year trading within a 2 cpp band but then
shedding more than 11 cpp, or nearly 34%, in August alone.
$0.30
Power
$0.25
Editorial
$/lb
$0.35
Summary
Guest Feature
$0.40
$0.20
FEB-15
MAR-15
APR-15
MAY-15
JUN-15
JUL-15
AUG-15
Petroleum
JAN-15
1.00
0.80
0.60
0.50
0.30
0.40
0.20
Weather and
Emissions
0.60
0.40
$/gal (Ethane)
0.70
Finance
0.80
Data
Vendors
0.20
0.10
0.00
Ethylene-MtB Wms
HDPE BM Houston
Market
Analysis
06-AUG-15
15-JUN-15
22-APR-15
27-FEB-15
05-JAN-15
10-NOV-14
18-SEP-14
28-JUL-14
04-JUN-14
10-APR-14
18-FEB-14
23-DEC-13
30-OCT-13
09-SEP-13
17-JUL-13
24-MAY-13
03-APR-13
07-FEB-13
13-DEC-12
22-OCT-12
29-AUG-12
09-JUL-12
15-MAY-12
22-MAR-12
30-JAN-12
05-DEC-11
12-OCT-11
19-AUG-11
28-JUN-11
05-MAY-11
14-MAR-11
19-JAN-11
24-NOV-10
0.00
Ethane
Guest
Feature
Figure 2
A confluence of factors has kept the bearish pressure on ethylene. Outages and reductions
at downstream plants have muted typical olefins demand, and fewer consumers have been
62
In Depth
August 2015
Softs and
Metals
1.20
0.90
Coal
In contrast, in recent days NYMEX crude has been hovering in the low $40s/bbl area, natural
gas between $2.60-$2.70/mmBtu, ethane in the low 20s cpg, and HDPE BM in the Houston
market around 46-48 cpp.
Nat Gas
Spot ethylene prices broke below 30 cpp on August 6 and by August 12 reached 25 cpp. On
August 14, ethylene settled at 22 cpp, a level last seen in July 2009, when NYMEX WTI crude
was in the $70s/bbl, natural gas around $3.60/mmBtu, Mont Belvieu ethane about
45-46 cents/gallon, and spot high density polyethylene blow molding (HDPE BM) in the
Houston market around 50-51 cpp.
Editorial
Power
Summary
Guest Feature
seeking spot market material. It is interesting to note that no single incident has itself
dramatically affected consumer demand for ethylene.
With ethylene plant rates still near 100%, supply has been building as consumption has
tapered off. In addition to the growing supply, companies that operate on a fiscal year are
approaching their own year-end inventory assessment.
Nat Gas
80
100%
95%
50
90%
40
85%
20
Softs and
Metals
30
60
Coal
70
80%
JUL-15
JAN-15
APR-15
JUL-14
OCT-14
APR-14
OCT-13
JAN-14
JUL-13
JAN-13
APR-13
APR-12
JUL-12
OCT-12
OCT-11
JAN-12
JUL-11
APR-11
JUL-10
OCT-10
JAN-11
APR-10
75%
Finance
JAN-10
OCT-09
10
Weather and
Emissions
Figure 3
Data
Vendors
Seen more commonly in December, although some companies see their fiscal years end in
October, the desire to limit ad valorem taxes on year-end inventory value becomes a
short-term fundamental, and a certain amount of destocking is typically seen for
many commodities.
63
In Depth
August 2015
Guest
Feature
Ethylene has seen lows below the 25 cpp level before, and many eyes are watching to see
how low it will go this time. In past periods of decline, ethylene has bounced back from lows of
15 cpp (December 2008) and 20 cpp (January 2003). Its lowest level since the Williams hub
opened was 13.5 cpp in February 2002.
Market
Analysis
Additionally, ethylene has long had a significant premium to its feedstocks, which in
August has become its potential downside as its cost-based floor is 10 cpp or less. With
ethane at 20 cpg and ethylene at 22 cpp, ethylene still holds a premium of around 13 cpp to
ethane (see Figure 4).
2-JUL-15
2-JUL-14
2-JUL-13
2-JUL-12
2-JUL-11
2-JUL-10
2-JUL-09
2-JUL-08
Petroleum
2-JUL-07
Power
Nat Gas
$/lb
Figure 4
Coal
But as soon as ethylene hit that six-year low of 22 cpp, the reaction was another chorus of
what market watchers and participants had been saying all month as ethylene began
its freefall: Is this the floor?
Softs and
Metals
Whether the 22 cpp mark is indeed the floor remains to be seen, but a trade on August 17
at 22.375 cpp and another on August 18 at 22.75 cpp indicated that a rebound might
be occurring.
Finance
Spot ethylene has certainly seen lower prices than 22 cpp, but the speed at which prices fell
from 30 cpp to 20 cpp one week was somewhat unusual. With the exception of two days
in January, spot ethylene during 2015 has traded in a band of 35-39 cpp until July 1. The
slide in July was gradual over the entire month, prices dropped 1.5 cpp to end it at
33.5 cpp. In contrast, spot prices have dropped 11.5 cpp in August.
In Depth
64
Guest
Feature
Ethylene contract prices were 35.25 cpp in January and spent most of 2Q at 34.25 cpp. They
fell to 33.75 cpp in June and to 32.75 cpp in July.
Market
Analysis
With spot prices currently 10 cpp below that level, sentiment that August contract prices
would drop is widespread. However, the month-to-date spot weighted average for August at
27.75 cpp is more tempered than a full 10 cpp drop. With another nine trading days left in
August (monthly contracts retroactively settle after the month ends), the closing days
of the August spot market will show how sustainable the current rebound is, which will inform
contract negotiations.
Data
Vendors
Weather and
Emissions
The most significant effect of the spot price decline is on monthly supply contract prices. The
monthly NTP (net transaction price) for contract ethylene was 32.75 cpp for July, down 1 cpp
from June. The PetrochemWire (PCW) spot weighted average in July was 34.6 cpp.
August 2015
Editorial
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
Summary
Guest Feature
1.00
0.90
Power
Petroleum
The swift drop in ethylene exacerbated tepid downstream demand as consumers largely
stepped back from buying and waited for the market to find a floor. And the late-day sell-off
on August 21 has given buyers pause once more.
Nat Gas
Forward Curve
Coal
One thing is certain: current-month ethylene remains the cheapest along the forward curve.
A contango shape has been demonstrated for most months in 2015 with 4Q prices slightly
more than a penny above August, and 1Q 2016 about a penny above 4Q 2015. While
August offers on Thursday were falling below the 24 cpp level, 2Q 2015 was trading at
25 cpp. This trend has largely been true for more than a month, but the premium of forward
markets has been increasingly more pronounced in the past two weeks.
Softs and
Metals
August has been an unusually volatile month for spot ethylene, which traded in a band of
34-37 cpp for nearly all of 2015 until late July.
Finance
0.27
0.265
Weather and
Emissions
0.26
0.25
Data
Vendors
$/lb
0.255
0.245
0.24
Market
Analysis
0.235
AUG-17
JUN-17
APR-17
FEB-17
DEC-16
OCT-16
AUG-16
JUN-16
APR-16
FEB-16
DEC-15
OCT-15
Guest
Feature
AUG-15
0.23
0.225
Editorial
Operating rates at the Gulf regions ethylene plants remained high, although news of two
unexpected outages this week gave rise to bullish speculation. One was an outage at
DuPonts 1.5 billion lb/year Orange facility in Texas, which shut August 17. On August 20,
Dows 2.295 billion lb/yr TX-8 unit at Freeport shut. The Dow unit was back in service by
Thursday morning. Additionally, Flint Hills Resources 1.35 billion lb/yr plant at Port Arthur
remained shut for a planned outage.
Summary
Guest Feature
However, many in the market seem intent on testing the apparent 22-cpp resistance level
again. On August 21, August began trading down again, finishing the day at 23.25 cpp.
In Depth
August 2015
60
0.7
50
40
0.6
0.5
30
20
0.4
10
0.3
0.2
0.1
Softs and
Metals
Coal
04-MAY-11
20-JUN-11
05-AUG-11
21-SEP-11
04-NOV-11
22-DEC-11
10-FEB-12
28-MAR-12
14-MAY-12
28-JUN-12
14-AUG-12
28-SEP-12
13-NOV-12
02-JAN-13
19-FEB-13
05-APR-13
21-MAY-13
08-JUL-13
21-AUG-13
07-OCT-13
20-NOV-13
08-JAN-14
25-FEB-14
10-APR-14
29-MAY-14
15-JUL-14
29-AUG-14
15-OCT-14
01-DEC-14
16-JAN-15
05-MAR-15
21-APR-15
05-JUN-15
22-JUL-15
-10
-20
0.8
Nat Gas
70
Petroleum
0.9
Power
80
Figure 6
2012
43.549
41.779
26.165
26.863
2013
48.150
40.695
37.484
22.573
2014
48.424
39.395
47.124
29.472
2015 YTD
26.244
30.843
31.818
15.288
Market
Analysis
Natural gasoline
Data
Vendors
Butane
Guest
Feature
Figure 7
66
In Depth
August 2015
Weather and
Emissions
Propane
Finance
However, year-over ethylene cash costs for all products are collapsing, which could give
pause to companies considering new crackers and possibly even plant expansions. Ethane
and natural gasoline are worth singling out as ethane cash cost margins, pegged Friday at
13.705 cpp, are among the lowest since October 2011. Between 2014 and the year-to-date,
ethane margins have fallen about 46%.
Average margins (cpp) Ethane
Editorial
As spot ethylene prices hit multi-year lows over the past two weeks and NGL prices also took
a tumble week-on-week, it is interesting to note that cash cost margins, while sharply
narrower are nowhere near historical lows. (Cash cost is the cost of producing ethylene from
a given NGL.)
Summary
Guest Feature
Summary
Editorial
Power
Natural gasoline, which fell to a nearly seven-year low on August 21, has seen its year-on-year
margin lose about 48% of value so far. However, natural gasoline, unlike ethane, is not the
feedstock of choice in the vast majority of US crackers.
Guest Feature
This is significant in that ethane is now the most widely used feedstock in US ethylene plants,
a move that began a couple of years ago with the onset of the shale revolution that brought
about a rampant increase in NGL production and depressed NGL prices (notably ethane,
which is generally the largest component in the standard NGL barrel).
Propylene
Softs and
Metals
Finance
Feed Slates
Guest
Feature
In Depth
67
Market
Analysis
Currently, propane is the cheapest feedstock to produce ethylene, as per its cash cost, which
came in at 4.709 cpp, according to PCW prices.
Data
Vendors
Cash costs to produce ethylene from ethane have been in the 7-10 cpp range for years, PCW
prices show. Propane, however, has been more volatile with its cash costs ranging between
10 cpp and 50 cpp in just the past two years. However, when propane began hitting some
historical lows in late 2014 and appeared to stabilize at these levels, ethylene producers took
notice. Since then, the appetite for propane as a feedstock has grown.
Weather and
Emissions
Between the beginning of the year and early July, a shift in feed slates to crack as much
propane as possible also increased propylene output during a time when demand had grown
sluggish. Inventories of propylene for non-fuel use stood at 5.22 million barrels for the week
ending June 26, EIA data showed, 28% up from year-ago levels and 31% higher than the
five-year average. Propane petchems demand has risen from about 350,000 b/d in January
to about 450,000 b/d in June, Genscape data shows.
August 2015
Coal
The driver of PGPs premium price has been that its supply, especially as a co-product, has
dwindled in the US as steam crackers shifted to lighter feedstocks that maximize ethylene
output. The abundance of ethylene, however, has often kept it at a discount to PGP and
created favorable economics for running metathesis units that convert ethylene
into propylene.
Nat Gas
This last occurred in September 2014 with ethylene prices briefly overtaking PGP for a week.
At the time, three large olefins plants were shut, keeping 1.7 million pounds of ethylene out of
the Gulf Coast market each day. This week, with all plants running, ethylene was trading at
35 cpp. Dozens of deals were seen this week and about 75 mm lbs of July ethylene was
transacted, while July PGP traded once, at 34.5 cpp, according to PCW prices.
Petroleum
In
Depth
The first overall signs that the spot olefins market was beginning to make a significant
downturn came not from ethylene, but polymer-grade propylene (PGP). PGP prices fell
below ethylene in early July, a situation not seen in nearly a year, as propylene supplies rose
on cheaper propane prices and increased petchems cracking.
Power
Softs and
Metals
Finance
Weather and
Emissions
The recent downward and volatile trend in US olefins markets and resulting impacts in
contract pricing, cash costs, and upstream/downstream markets is to be scrutinized
keenly over the next few weeks and months. As the market searches for a floor and ponders
the August contract price, what are the longer-term implications for billion-dollar
petrochemical projects first hatched a few years ago, when cheap feedstocks promised a
US petrochemical renaissance?
Market
Analysis
Guest
Feature
In any case, what has proved critical during this period of uncertainty is the need for daily
price transparency all along the supply chain from NGLs to olefins to polymers to better
anticipate, or at least prepare for, the next turn in this ever-volatile marketplace. e
Data
Vendors
For downstream markets, such as polymers and PVC, among others, the cheaper olefins bring
the comfort of plumper margins, but anecdotal evidence of logistical constraints could
prevent producers from reaping said benefits, should this downward trend ultimately turn out
to be a short-term phenomenon.
68
In Depth
August 2015
Coal
Summary
Nat Gas
With the January price at 49.5 cpp, PGP contract prices have now lost about 32% of its value
for the year to date. PGP contract prices got as low as 20 cpp in December 2008 and spent
the next six months climbing back to 40 cpp in June 2009. As for this year, PGP contracts
have steadily fallen since hitting 50.5 cpp in February, following the trend in the spot PGP
market. A year ago, the PGP contract price was 72.5 cpp and spot PGP was trading at 70 cpp.
Petroleum
In
US monthly propylene contracts for August began to settle August 18 at a 3.5 cpp decrease
from July, bringing PGP to 33 cpp and chemical grade propylene (CGP) to 31.5 cpp.
Producers had previously nominated a rollover for August contract pricing, but as spot PGP
traded below the 30 cpp level and feedstock RGP trended towards the 20 cpp level,
negotiations centered on a decrease. The July contract price was the first time PGP contracts
went below 40 cpp since 2009.
Editorial
In the longer-term, as new propane dehydrogenation units come on-stream, PGPs premium
is not a guarantee, given the added length this would bring to the PGP market.
Impact on PGP contract pricing
Summary
Guest Feature
Depth
In the meantime, a raft of polypropylene (PP) operating issues has muted demand for
propylene. Downstream ethylene markets, such as polyethylene and polyvinyl chloride (PVC),
have largely been running their plants at high rates, supporting ethylene prices. As PP
operations were expected to stabilize and demand was expected improve, PGP prices at the
time were likewise expected to regain their premium. However, PGP prices regained their
premium on August 6 the day ethylene broke below the 30-cpp mark and began its decided
march southward.
Editorial
Power
Petroleum
Nat Gas
Kathy Hall heads the Texas-based publishing company, managing information flow and all
editors and researchers at PetroChem Wire. She spent more than 10 years as a commodity
markets reporter and editor at Platts, a division of the McGraw-Hill Companies. Kathy is the
companys operating executive and executive editor.
In
PetroChem Wire creates global awareness of the US NGLs, olefins, polymers and aromatics
markets by providing useful and clear information at the close of each business day.
PetroChem Wire was formed in 2007. Its olefins and polyolefins prices serve as benchmarks
for a number of physical and swap contracts that trade on the CME/NYMEX Clearport system.
Summary
Guest Feature
Depth
Coal
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
69
In Depth
August 2015
Summary
Editorial
Power
Petroleum
In Depth
Nat Gas
Coal
Finance
Weather and
Emissions
Firms and utilities searching for an EDM system have two major options available to them:
Softs and
Metals
Many large integrated oil and natural gas firms, commodity firms, and power utilities rely on
an Enterprise Data Management (EDM) system to acquire the data required for their trade and
risk management (ETRM/CTRM), enterprise resource planning (ERP), business intelligence
(BI), visualization, and accounting and settlement systems. These systems require significant
volumes of data. For example, a modern ETRM may require hundreds of discrete data reports
containing time series, including energy brokerage data, information from price reporting
agencies, and internal operational data about proprietary crack spreads, forward price curves,
and more. Power firms must have access to nodal ISO feeds, plant operational data, and
metering data.
1. Build: Firms may build a basic EDM system in-house with their internal IT resources.
Firms may license a commercial EDM solution from ZE PowerGroup.
70
In Depth
August 2015
Guest
Feature
Energy trade and risk management, business intelligence, and financial and
settlement systems must be fed by an EDM system. EDM systems can be built
or purchased from a specialized vendor like ZE.
Market
Analysis
In what follows, best practices from industry experts, thought leaders, and academics will be
discussed alongside anecdotes from two firms facing data management dilemmas.
Ultimately, both firms selected a commercial off-the-shelf (COTS) EDM system, ZEMA, to meet
their data management needs.
Data
Vendors
2. Buy:
Power
Petroleum
Nat Gas
Softs and
Metals
Coal
Finance
EDM isnt just about data collection. A modern EDM system also requires a data
quality control system, a storage system, an administration system to provide
entitlement control, an industry-specific analytical engine, and software
support for integration and future development - all of which is included when
you license ZEMA.
Weather and
Emissions
Editorial
Summary
In Depth
Data
Vendors
Market
Analysis
Guest
Feature
71
In Depth
August 2015
Summary
Editorial
Guest Feature
Depth
Power
Petroleum
In
Nat Gas
Coal
Market
Analysis
Guest
Feature
72
In Depth
P.C. Clements, From Subroutines to Subsystems: Component-Based Software Development, Software Engineering Institute, November 1995,
accessed February 1, 2014, http://resources.sei.cmu.edu/library/asset-view.cfm?assetid=29995.
I. Ruchkin, Building Software In house: Too Much Control and Flexibility, Institute for Software Research, May 9, 2012, accessed February 1, 2014,
http://www.cs.cmu.edu/~iruchkin/docs/ruchkin12-building-software-in house.pdf.
August 2015
Data
Vendors
1
2
Weather and
Emissions
Managers often face the challenge of sorting out preferences towards building versus the
benefits of purchasing a COTS solution. Many industry professionals and academic papers
have come to the following general consensus: Firms should build software to improve core
business and differentiate themselves. Firms should buy when improving or automating
routine business processes.2 An in-depth case study from Rukins Institute for Software
Research offers a cautionary tale about a logistics business that developed an in-house
system which gave them an initial competitive advantage. Six years later, though, as COTS
solutions became widely available and highly improved, this logistics business was unable
Finance
On the other side, other IT stakeholders tend to have a bias towards building an EDM system
because they place a high value on customization, expect departments hosting the system to
benefit from the additional budget and personnel maintaining the system, and desire to utilize
an in-house skill set.
Softs and
Metals
In the mid-90s, a paradigm shift changed the way large software systems were developed,
moving away from in-house development and towards component-based software
development (CBSD)1 and its commercial subset, COTS software. The concept behind this
movement is that there arent many business problems truly unique to one firm. As such, firms
should use well-developed, widespread components to build a solution, whenever possible,
to minimize reinventing the wheel. While using the succinct mantra Buy, dont build, some
caution that the combination of components has to be wisely chosen and properly integrated,
both from a business and technological perspective.
Summary
Editorial
Power
In Depth
to break away from their in-house system. As such, they remained incapable of matching the
scale of resources possessed by commercial systems and eventually lost their competitive
advantage, while their peers bought increasingly mature COTS systems. A massive financial
loss occurred before this organization was forced to recognize this new reality and change
their tactics six years too late.3
Coal
Does the Firm Meet the Preconditions Required for In-House EDM Development?
Nat Gas
Consulting firms offer a more nuanced pros and cons message about EDM software for energy
and commodities industries, in line with their commercial interests and client experiences.4
The following is a workflow followed by consulting firms working with clients who are building
an in-house EDM system.
Petroleum
In-house EDM developments require that the following preconditions be met in order to
minimize projectrisks:
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
August 2015
73
In Depth
3 Ibid.
4 To Build or Not to Build: Building Your Own Data Management System Versus Buying,
Dataforensics, 2012, accessed February 1, 2014, http://www.dataforensics.net/pdfs/Build%20vs%20Buy.pdf.
Power
Petroleum
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
In Depth
74
Coal
Time-to-market constraints:
Decisions to acquire a data management solution are generally time-bound by business
requirements. A firm requiring an EDM system usually requires it soon (meaning within a
year). ZEs experience, based upon client interviews, suggests that it takes at least two to
three years to create a basic data collection and scheduling application, along with a
critical entitlement and data quality software. The exact time-to-market depends on
variables such as the features required, the number of experienced developers and
managers, and the budget. Developing the remaining EDM modules, including the
analytical engine, requires additional time. A firm with unrealistic deadlines will force the
project manager to balance costs, required features, and time-to-market, resulting in a
sub-optimal system.
Nat Gas
Direct cost:
Direct cost savings are often mistakenly cited by firms as the top reason to develop EDM
software in house. To fully account for initial development costs, firms should budget for
project management and direct administration costs, infrastructure, domain knowledge
learning and methodology development, software design and programming, server and
licensing costs, testing, documentation, integration with internal systems, and finally,
roll-out and user training. Costs do not end with the roll-out; recurring costs are described
in the next section. A ZE survey looking at internal development costs and client
experiences suggests that a basic EDM software system costs $4,000,000 USD and takes
three years to develop, not including ongoing operational costs or future product
enhancements. Future enhancements may include a data collection and scheduling
engine, the extension of required data feeds, and the development of data quality control
and entitlement administration applications, all of which are necessary EDM components.
In ZEs experience, most medium to large energy firms consume anywhere from
100-300 data feeds, and the three year estimated time-to-market development period
assumes that an in-house group of experienced data acquisition developers is present.
Costs may be reduced by outsourcing, but this poses an increased threat to the
management of code quality and the protection of intellectual property.
August 2015
Editorial
Opportunity cost:
There is often a misperception that developing an EDM system is a sunk cost, since
in-house developers, managers, and infrastructure are already paid for. There are no free
lunches the benefits of using a firms resources to develop an EDM system should be
measured against the potentially large opportunity cost of not using those resources.
Summary
Once a firm determines that an EDM system is within its core competency and business
scope, it must next quantify the opportunity cost, direct cost, and the time-to-market
constraints. Many of ZEs clients formerly attempted to build an EDM software in house.
Drawing from both its clients experiences and its own experience producing ZEMA, ZE has
developed a breakdown of the costs involved in producing an EDM system. This breakdown is
detailed in Table 1.
In Depth
$ 3,000,000
2.5
$ 500,000
0.25
$ 500,000
0.25
Not Included
Not Included
Integration API
$ 4,000,000
Nat Gas
Not Included
Petroleum
Power
Editorial
Summary
Est. Cost
In Depth
Coal
Market
Analysis
Guest
Feature
In Depth
75
Data
Vendors
August 2015
Weather and
Emissions
Finance
Softs and
Metals
Recurring operational costs are a significant budgetary component of the overall cost of an
in-house EDM system. Table 2 shows an itemized cost breakdown.
Power
Petroleum
Nat Gas
Editorial
Summary
In Depth
Coal
$ 150,000
$ 50,000
$ 50,000
$ 250,000
$ 600,000
Weather and
Emissions
$ 100,000
Finance
Softs and
Metals
Est. Cost
In Depth
76
Guest
Feature
August 2015
Market
Analysis
Technology, methodology, and hardware continuously improve over time. User input,
technology, market events, growth in data availability, external regulation, and deployment
scale changes justify a major rebuild cycle once every three to five years. The resources
required for a rebuild make this unlikely for any single entity. ZE estimates that a one-time
expenditure of $800,000 is required to fund a core team of three to four developers who
produce a future iteration of an EDM system in two to five years. This does not account for
developing an analytical and automation engine. Nonetheless, the operational experience
and user feedback gained from running a basic EDM system for a few years gives a firm insight
into improving data collection, quality control, entitlement management, and other critical
components of in-house EDMdevelopment.
Data
Vendors
$ 800,000
Editorial
Summary
Est. Cost
In Depth
Power
What Is the Five-Year Total Cost of Ownership (TCO) for an In-House EDM System?
Petroleum
The five-year TCO for the development of an in-house EDM system can be broken down into
several large cost components. The initial effort to build a basic data collection and
scheduling engine, plus the required data feeds, typically takes three years of careful
development and $4,000,000 USD. This does not include developing an industry-specific
analytical engine, a robust workflow/automation engine, or an API required for advanced
enterprise integration, all of which are critical components of a modern EDM system. The
opportunity cost and time-to-market constraints are not included because these factors are
firm-specific.
Nat Gas
Data
Vendors
Market
Analysis
ZE is an experienced software firm that combines energy industry expertise with advanced
software development capabilities. ZE started building EDM solutions in 2001 in response
to the demands of deregulated North American energy markets. ZEMA is an end-to-end EDM
solution designed for collecting data, performing complex analysis, automating business
processes, and integrating with any downstream system. ZEMA is now used across the globe
by multi-commodity, multi-national clients in the energy and commodities industries. ZEMAs
development as a modern EDM platform is the culmination of the development, R&D, and
ongoing efforts of over 200 dedicated staff.
Weather and
Emissions
Finance
Softs and
Metals
The total five-year cost of ownership for an in-house EDM system is about $5,400,000 USD. If
the firm forgoes R&D and minimizes application support and training, it can save perhaps an
additional $1,800,000 USD over two years, but at the expense of long-term application
viability and user uptake.
Coal
The subsequent two years of operational costs, including data maintenance, application
support and training, and software licensing will add up to about $1,200,000 USD. R&D for
a future EDM iteration is conservatively estimated at about $800,000 USD, spread out over
two years. Again, this doesnt account for developing an analytical engine, but it does begin to
address some of the other components of a modern EDM system.
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Summary
Editorial
ZE has a history of delivering its EDM solution on time and within its clients budgetary
constraints. ZEs teams employ a holistic approach to discovering unique client data and
integration requirements, then subsequently configure ZEMAs EDM modules to meet these
needs. ZEs successes have translated into industry recognition: the company has been voted
as the top data management house of the year by Energy Risk magazine five years in a row.
In Depth
Power
Petroleum
Opportunity cost:
ZEMAs well-crafted data management software solution reduces the opportunity costs
associated with building an in-house EDM platform.
Nat Gas
Direct cost:
Deploying ZEMA not only provides cost saving opportunities, but also a near-immediate
return on investment and enhanced revenue opportunities. These cost savings include
reduced integration, data consolidation, data storage, and data cleansing costs. From a
business perspective, implementing ZEMA improves data security and regulatory
compliance and reduces IT operational expenses without impacting service or incurring
risk. Finally, ZEMA reduces the costs of long-term planning and implementation expenses
associated with future EDM requirements.
Coal
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
Licensing ZEMA reduces the time-to-market risks inherent in building an EDM solution:
Simply put, an individual firm would be hard-pressed to develop advanced EDM software
of a similar quality, in a shorter time frame, on a smaller budget, and with less domain
knowledge at their disposal. Compared with the costs and requirements detailed in the
section Case for Building a Modern EDM System, implementing ZEMA is a rapid and
reliable solution to data management dilemmas, as ZEMA is completely developed and
ZE has many years of experiencing implementing the software for clients of all sizes. ZEs
teams work with clients to identify the data they require, install new data feeds, develop
adaptors to connect with integration points, and install the EDM system itself. A typical
ZEMA build consists of 300 incoming data feeds and connects with two to three major
systems, including billing and ETRMs. Implementation times range between one to six
months from start to finish, depending on the complexity and scope of the project.
Conservatively speaking, this means a ZEMA implementation can be completed in less
than a fifth of the time it takes for in-house development of an EDM solution. This translates
to huge time and cost savings, as well as a reduction of project delivery risks.
Market
Analysis
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Feature
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Coal
Softs and
Metals
Finance
Weather and
Emissions
Market
Analysis
Data
Vendors
ZEMA Market Analyzer is an energy commodity-specific engine used for data fusion, analytics,
business intelligence, and forward curve development. Market Analyzer is the culmination of
years of research conducted on behalf of some of the worlds largest energy firms.
In Depth
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Feature
ZEMA Curve Manager can automatically feed downstream systems via a library of
developed productized adaptors. ZE has developed adaptors for all major ETRM systems,
August 2015
Nat Gas
Petroleum
Power
Editorial
Clients data collection requirements are covered by ZEMAs Data Manager application, a
scheduling engine supported by a library of more than 4,000 data points from all major
commodity exchanges, pricing agencies such as Platts and Argus, and other international and
regional sources.
Summary
ZEMA was developed according to industry best practices; as such, it fulfills all modern
EDM requirements.
In Depth
Editorial
Power
ZEMAs web service API allows firms to easily design their own integration points.Full
Support and Future EDM Development Services
Summary
ZEMA Data Direct and Curve Portal allow two-way Excel integration, meaning users can log
on to ZEMA securely via Excel, connect with a live feed of normalized data or analytics, do
business processing via Excel, then upload their results securely back into ZEMA, with full
audit records.
In Depth
SAP settlement systems, and many specialized BI packages, including Spotfire, Matlab,
and Tableau. ZE also routinely develops new adaptors for new systems, when necessary.
Coal
Application support:
ZE provides 24/7 services to troubleshoot application issues.
Nat Gas
Petroleum
ZE offers an unmatched arsenal of services that allow firms to selectively control aspects of
their EDM solution, either in house or in a ZE-hosted environment.
Finance
Application training:
ZE provides both on-site and online training services through its branch offices in North
America, Asia, and Europe. The companys global presence means clients benefit from
on-site training, regardless of their location.
Softs and
Metals
Weather and
Emissions
Data
Vendors
Consulting on demand:
ZE analysts have years of experience helping some of the largest global energy firms fulfill
their analytical requirements.
ZEMA Improves the Total Cost of Ownership
Market
Analysis
Case studies of two major ZEMA clients will further reinforce what has been stated above: that
licensing ZEMA cuts time-to-market by one-fifth (conservatively) compared to building an
in-house EDM platform.
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This firm has been in operation for over 100 years and is one of the largest utilities in the
United States; it has a recent market cap value of over $50 billion in USD.
Finance
Weather and
Emissions
Electricity market data from ISOs such as CAISO, including high volume five-minute
nodal data.
Commodity exchange data from exchanges such as ICE and NYMEX.
Data
Vendors
Weather data from organizations like NOAA and internal weather station feeds.
Internal operational data, including internal market forecasts, counterparty
forecasts, generation units, and gas pipeline transport data.
Market
Analysis
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Softs and
Metals
Coal
Data Required:
Nat Gas
The firm had a capable IT department and initially decided to build an EDM solution in house,
setting aside a budget of $1,000,000 USD and establishing a take-to-market deadline of
one year. One year and $2,000,000 USD later, the firm had not yet developed a full data
collection and scheduling application. It had only completed one-third of the required data
scrapers. The scheduling engine was not online yet, and the final price tag had been revised
upwards to a total of $3,000,000 USD plus an additional year of development. Facing high
project delivery risks, uncertain time-to-market, and a loss of confidence in the in-house
approach, the firm reversed course and licensed ZEMA. It is important to note that the EDM
system the organization had developed in house lacked a data validation system and an
advanced analytics and automation engine all critical components of modern
EDM software.
Petroleum
The firm required an EDM system to collect electricity market data from three transmission
jurisdictions, commodity exchange data, and internal operational and forecast data. The firm
needed a system that also transformed and integrated aspects of collected data with several
downstream systems, including an ETRM system.
Power
Purpose:
Editorial
Background:
Summary
In Depth
Implementation:
Coal
Softs and
Metals
This global multi-commodity firm is one of the top ten Global 500 firms; it is publicly traded
and has a recent market cap value exceeding $200 billion in USD.
Growing Pains:
3. The firm had no clarity regarding data usuage; therefore, it could not easily determine which
subscription feeds were unnecessary.
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Market
Analysis
2. Some subscription feeds were licensed multiple times due to the requirements of several
separate data management platforms in various business units.
Data
Vendors
1. Energy price reporting agencies charge high subscription fees and demand that firms report
on employees data usage. The firms lack of entitlement data meant that it was charged a
maximum amount based on its global headcount as opposed to its actual data usage.
Weather and
Emissions
Finance
As the firms data requirements increased, it experienced two points of pain: one technical in
nature and the other business-related.
August 2015
Nat Gas
Ideally, the firm would have saved the majority of its $3,000,000 USD budget if it had
decided to license a modern EDM solution from the beginning. Maintaining an in-house
system is significantly more expensive than purchasing a solution from a commercial vendor,
who has the ability to provide both 24/7 support services, data feed maintenance, and new
data feed development services.
Petroleum
Power
Licencing ZEMA was significantly more cost effective than the estimated in-house build; the
solution was installed and configured within a month. By the third month, all required data
feeds were developed, tested, and installed, and by the fourth month, the system was live and
fully integrated with the organizations downstream systems.
Editorial
ZEMA Enterprise Solution: Data Manager, Data Validation, Administration Console, Market
Analyzer, and Curve Manager.
Summary
In Depth
Summary
Editorial
In Depth
Downstream systems consuming this data included three major ETRMs, an ERP, several
BI systems, and user-query tools specific to each silo. The web of integration processes
required to connect these data silos with downstream systems was highly complex and
difficult to maintain, as each silo had different underlying architectures. The total annual
maintenance cost for these systems was estimated at $1.5 million USD/year and growing.
Purpose:
Nat Gas
Petroleum
Data Required:
Power
ZEMA was licensed to fulfill the organizations requirement for a scalable, flexible EDM system
to centralize data collection processes, including internal firm-specific data; monitor the
quality of data; control data entitlements; provide advanced analytical capabilities; automate
tens of thousands of forward curves and analytics; and seamlessly connect with ETRM, ERM,
and specialized BI tools.
International energy price reporting agencies and brokerages, such as Argus, Bentek,
Dow Jones, OPIS, Platts, Bloomberg, Reuters, and WSJ.
Coal
North American electricity markets such as AESO, ERCOT, IESO, ISONE, MISO, CAISO
MRTU, NBSO, NYISO, and PJM.
Government agencies and weather organizations like EIA, NOAA, and WSI.
Softs and
Metals
Finance
Weather and
Emissions
Implementation:
Data
Vendors
The firm set strict resource policies and security guidelines to control the ZEMA systems
integration process. A comprehensive consulting period was used to confirm system
requirements, conduct data mapping, plan for data migration, and decommission legacy
proprietary databases.
Market
Analysis
ZEMA was installed and tested sequentially in user acceptance testing (UAT) and production
environments. Data feeds were developed, configured, reviewed, and deployed; integration
adaptors were developed; and integration outputs were validated against the companys
existing system.
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Feature
This paved way for the transition from a production environment to go live, followed by the
phase out of current systems, user training, and an intensive support period. Finally, the
system was fully turned over to the client. The project took eight months to complete. The
Power
Petroleum
Total savings from entitlement alone are estimated by the firm at $1,000,000 USD annually
in subscription costs. EDM platform centralization saved an additional $1,500,000 USD
annually in maintenance and system swap-out costs. Industry specific analytics, forward
curve and analytics automation, and ongoing EDM improvements continue to provide
significant benefits over and above the organizations previous solution.
Nat Gas
Conclusion
Finance
Weather and
Emissions
Data
Vendors
The case for buying or licensing an EDM system is appropriate if creating EDM software is
not an organizations core business interest. ZEMA is a mature, market-proven platform that
complies with best industry practices. Conservatively speaking, ZEs implementation statistics
and client anecdotes prove that a ZEMA project implementation requires only one-fifth of the
time required to develop even a basic in-house EDM system.
Softs and
Metals
The case for building an EDM system from scratch hinges on an important business
question is it within a firms core business interests to develop EDM software themselves?
If yes, then can the firm marshal team managers and developers with the right mix of domain
knowledge to follow through on the project? ZE estimates that building a basic in-house EDM
system requires a five-year budget of $5,400,000 USD. Initial development comprises three
years and more than two-thirds of the budget, while ongoing operational and R&D costs
account for the remainder. ZEs experience indicates that most firms start building an EDM
project without realizing the full extent of the time, resources, and expertise required.
Coal
In the energy and commodities industries, powerful enterprise platforms require a modern
EDM system. A firm without a good EDM platform cannot use its corporate data effectively as
an asset, and may lose its competitive advantage in the marketplace. Modern EDM software
covers not only data collection, but also validation, administration, analytics, automation,
and systems integration functions. Systems like this require proper funding for ongoing
support and future development.
Market
Analysis
Guest
Feature
Most firms do not have the right mix of human capital, financial resources, and time to
properly develop an EDM system from scratch. Instead, licensing a full-featured,
commercial EDM solution like ZEMA to integrate with existing enterprise platforms is often a
smarter choice. From a project risk perspective, commercial EDM software like ZEMA has a
well-defined risk profile and timeline. From a cost perspective, an individual firm with little
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This firms IT department runs many global systems. As such, it chose to operate and maintain
ZEMA on an enterprise-hosted basis. The firm continues to utilize ZEs 24/7 support, including
data feed maintenance services.
Summary
Maintenance:
In Depth
finalized ZEMA solution collected data from 800 individual feeds and supported 850 users
globally. It generated over ten thousand forward curves per day.
Editorial
Power
Summary
Bibliography
In Depth
Petroleum
Ruchkin, I. Building Software In house: Too Much Control and Flexibility. Institute for Software Research.
May 9, 2012. Accessed February 1, 2014. http://www.cs.cmu.edu/~iruchkin/docs/
ruchkin12-building-software-in house.pdf.
To Build or Not to Build: Building Your Own Data Management System Versus Buying. Dataforensics. 2012.
Accessed February 1, 2014. http://www.dataforensics.net/pdfs/Build%20vs%20Buy.pdf.
Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
About ZEMA:
ZEMA is an enterprise data management software designed for collecting data and performing complex analysis.
ZEMA replaces fragmented data management processes with a sophisticated, unified, and automated system. Each
ZEMA component is modular and scalable, giving clients greater flexibility when integrating it into their organizations.
The solution is easy to use and backed by ZEs support team around the clock. It has been ranked first in the Energy
Risk Awards Data Management House of the Year category for five years in a row. In Energy Risks annual software
survey and rankings, it is also consistently rated by end users as first in the Preferred System, Ease of System
Integration, and Customer Service categories.
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Market
Analysis
Disclaimer:
ZE DataWatch is a report comprised of data updates and expectations for energy and commodities markets, powered
by ZEMA. The news contained in ZE DataWatch is for information purposes only. Although ZE PowerGroup believes
the information in this report to be correct, the organization does not warrant the accuracy or completeness of it.
Information in this report is not intended to provide financial, legal, accounting, or tax advice and should not be relied
upon in that regard. ZE PowerGroup is not responsible in any manner whatsoever for direct, indirect, special, or
consequential damages, howsoever caused, arising out of the use of this report.