Editor's letter – ETRM software spending up

The financial crisis brought about a broad agreement that companies need to re-visit their risk management functions and 18 months on it does seem that many companies have followed their words with action and invested in their ETRM processes.

According to our 2010 Software Survey, over 50% of companies invested in new software or upgrades in 2009, despite difficult times, which is up from 40% in 2008. In addition, some 67% said they intend to make similar investments this year. See 'System upgrade' for full survey results and to find out which vendors and systems were rated most highly by users.

This month’s Special Report visits carbon trading, asking what’s next after Copenhagen both for the EU ETS and the Clean Development Mechanism. There are mixed views on where carbon trading might go from here.

Opinion is also divided on the topic of Iraq and what its contribution to global oil supplies will be after a raft of deals have been signed with international oil companies. Some forecasts put Iraqi crude output as high as 7 to 10 million barrels a day in the next 7 to 10 years, up from its current 2.4 million b/d. This would make a significant difference to world oil supply and help to keep prices steady. However, many analysts view these numbers as wildly optimistic given the political backdrop and the state of infrastructure in the country. Lianna Brinded takes an in-depth look at the situation in 'Iraq: the new hope for oil security?'

Also in this issue we ask whether hedge funds are likely to return to the energy markets in force after pulling back at the start of this year, and we bring you an interview with Paymon Aliabadi, managing director of Gunvor’s global energy group.

You may have noticed that we’ve changed our logo this month. The new design brings the Risk family of publications together under a single, recognisable brand. This follows the launch of the Risk.net news portal last year – our new, single home for Incisive Media’s risk management and capital markets publications.