Many organizations in the energy industry use derivatives to control their exposure to market uncertainties and reduce the firm's exposure to risk. While many companies increased their use of derivatives, other organizations are re-examining their use in light of the perception by shareholders and the public that they are risky instruments.
Many companies cite a lack of knowledge as a reason from refraining to enter the market.
In the past few years, several companies have reported large, unauthorized losses from the use of derivative financial instruments. These problems highlight the need for effective internal and regulatory control of derivative activity. The introduction of electricity futures contracts has fundamentally redefined the role of companies in the electricity industry and added a new dimension to managing energy price risk. Maguire Oil and Gas Institute's Energy Policy Symposium brings together a group of industry experts to discuss these critical issues. The registration fee covers copies of all papers available at the meeting, as well as attendance at all sessions, the continental breakfast, and luncheon.