So What Does The Firm Of The Future Look Like?
The energy firm of the future will have to internalise real time data as well as have operational excellence. It will also need a strong balance sheet which is tough enough to survive large margin calls and uncertainty in income and investment. The culture of the firm of the future is market obsessed, technically innovative, and responsible to customers with a wider view of the global supply chain which will need to be fostered and de-risked.
The purpose of the energy capabilities matrix is to indentify the key people/asset/financial/trade-book/risk management capabilities required to survive and thrive in a punishing volatile energy market.
At the current time it may be incomprehensible to think but as a firm you could be exposed to a system which could be quite short for possibly a good five years or longer. These risks could also be compounded as the firm could also be caught within global cross commodity short positions, the likes of which no trader in humankind has experienced before. The punishing volatility could start as early as 2012/3, definitely by 2015, deepening in 2017 and possibly extend as far as 2023 before renewables/nuclear generation capability comes on line. In a punishing environment like this we need to find new ways to trade.
This Global Energy Advisory Capabilities matrix leads firms to consider they core attributes that will need to be developed for the energy environment. For each of the points in the matrix, the score is either yes or no; one for yes and zero for no. Once the firm is initially assessed, quarterly reviews are adequate.