Falling margins force energy firms to expand data use

Verification and model challenges arise as volatility and margins dry up

The drop in price volatility and narrowing margins across energy markets has driven the industry’s risk managers to look to more complex forecasting models and hunt out new sources of data.

Uncertainty lingers in energy markets, where a lack of volatility and tightened margins mean utilities, oil and gas firms can no longer rely on simple forecasting models. Many are collecting more data and building more sophisticated risk models in order to remain competitive. For some, it’s a matter of survi