Dealing with stressed contracts in the energy sector

The recent collapse of crude oil prices is inevitably putting many contracts in the energy sector under strain. Ashley Wright and Richard Steenhof of Norton Rose Fulbright explore the legal options available to energy companies that need to manage the risk of stressed contracts

Getting on the same page re US utilities regulations
The S-curve in the pricing formula of many contracts is not an impregnable defence against volatility

In the past few years, energy companies had become used to high oil prices and many expected this trend to continue. Prolonged high oil prices generated significant investment by industry players, which was often underpinned by contracts that assumed such high prices were here to stay.

Now, times have changed. On June 19 last year, front-month Brent North Sea crude oil futures closed at $115.06 a barrel (/bbl). Having plunged below $50/bbl in January, the front-month contract settled at just $58

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

Chartis Energy50 2023

The latest iteration of Chartis' Energy50 2023 ranking and report considers the key issues in today’s energy space, and assesses the vendors operating within it

2021 brings big changes to the carbon market landscape

ZE PowerGroup Inc. explores how newly launched emissions trading systems, recently established task forces, upcoming initiatives and the new US President, Joe Biden, and his administration can further the drive towards tackling the climate crisis

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here