Energy Competitions Starts With Restructuring - Ebele Kemery

Energy competition is primarily composed of natural gas and electric utility companies vying for long term customers. This industry is a large, heavily capitalized and highly competitive business that operates on a global level.
There is intense competition in the worldwide markets. The natural gas industry is closely connected to the discovery and creation of oil, which means that major oil companies are also engaged in energy competition within the natural gas division.

The spread and supply of the natural gas commodity is in many ways similar to the diffusion and delivery of electricity, and these commodities are treated similarly in restructuring markets where direct sales are permitted.
Prior to the reorganization of these markets in many states across America, companies found and manufactured the commodity and sold the resulting product to transporters that in turn transported it to distributorship operations.

These distribution companies make the commodity available in the open market for consumers to purchase and utilize. Under this traditional model of regulated markets, the need to contend was nonexistent as the business was incorporated from top to bottom allowing for all components of the production, distribution and sale of energy to be provided as a "bundle" to customers. Under federal regulation the industry was monopolized by public utilities.

The era of restructured and introduction of marketers of the commodities has opened up the power industry worldwide including the United State where about half of the states have adopted legislation to allow for market reorganization. The process essentially involves "unbundling" the supply component from the transportation component and expanding the customer choice.
Ebele Kemery believes that in the environment of restructured various aspects of the process can be entirely separated. Utilities can manage some but not all components of producing, delivering and selling energy to end users.

The increased energy competition conditions are causing the industries to undergo fundamental restructuring. There is intense rivalry among companies being introduced to the market and working within the market. Top to bottom organization has been replaced by lateral organization.
Within today's domestic market where the energy competition has advanced more than in almost any other market worldwide there has been a move away from the secure but restricted prices and extended contracts.

This is causing a wholesale change in the way each of the traditional components of the industry operates. Never-before-seen players, such as marketers who act as the liaison between traders of natural gas and electricity, have emerged.
Energy competition in the market place has impacted the delivery of power. This function was traditionally performed by companies that were financed through private investment or local governments.

Historically these public utilities had exclusive rights to distribute the commodity within specific geographic boundaries. Changes in markets have opened them to other companies who are also vying for customers.
Restructured and unbundling of services has ushered in options for separate contracts for storing and auxiliary services and well as discounts.
Most large users tend to buy natural gas and electricity directly from manufacturers or sales marketers while smaller use customers continue to purchase through local distribution companies involved in this market.

Ms. Ebele Kemery is a member of the Global Fixed Income, Currency & Commodities (GFICC) Group. Ebele is also a Portfolio manager - Head of Energy Investing at JPMorgan Asset Management. She has proven track record of robust and consistent profitable returns in commodities. And increased assets under management through strong performance and development of customized solutions that leverage a wide variety of market techniques

Alternative Energy Advantages - Ebele Kemery

Ebele Kemery: The continued use of fossil fuels has come under a lot of scrutiny in recent times. We keep hearing about alternative energy and how they should be used in lieu of fossil fuels. Have you entertained this thought at all? Do you wonder what the advantages of using alternative energy are and how you can benefit from it?
First, let us be clear about what alternative or renewable energy is. Alternative energy is the term used for energy sources other than fossil fuels. Although not all alternative sources of energy are renewable, for our discussion purposes, we will limit ourselves to renewable energy resources.

Renewable sources of energy are those that cannot be depleted and therefore, will never run out. Examples of these are sun, wind, running water, tide, wave, and still many others. To illustrate this point, imagine using wind power to generate electricity for your home. The wind is always in the atmosphere, blowing in your surroundings. Its strength and speed may not always be the same, but you can be assured that your use of this energy now will not diminish your supply of wind in the future.
In fact, that is one very obvious advantage of using alternative or renewable energy. Unlike fossil fuels where the supply of which is in rapid decline, we will never have to worry about running out of renewable energy. That isn't going to happen.

Another very important advantage of using alternative energy is its contribution to environmental well-being. The burning of fossil fuels, a process required in converting them into a consumable energy, pollutes the environment in a non-repairable manner. Global warming, or the warming up of the earth due to enhanced emission of greenhouse gases in the atmosphere, is a very prevalent problem the whole world is facing. And fossil fuels are a major contributor to this environmental concern.

On the other hand, the use of renewable energy does not bring forth an enhanced emission of greenhouse gases because burning is no longer required for their use. Also, alternative energy sources such as wind power, solar power, hydro energy, tidal power, and wave energy are clean and unpolluted. So, aside from not adding to the pollution caused by enhanced greenhouse gases, these types of alternative energy do not contribute to other forms of environmental degradation. Whatever impact the use of renewable energy entails, it is very minimal compared to the consequences of using fossil fuels.

Moreover, the use of alternative energy will benefit the local economy because we will no longer need to import fossil fuels to generate electricity. Since electricity will now be generated locally, it will also mean more job opportunities for the locals.
Using alternative energy can sometimes require substantial capital investment, but in the long run, it will undoubtedly be more cost-efficient for the economy or the investor, especially since the supply is practically free. And more importantly, it will be of the very least cost to the environment.

Ebele Kemery is a member of the Global Fixed Income, Currency & Commodities (GFICC) Group. Based in New York, Ebele is the head of Energy Investing within the Commodities team and is a Commodities Leader with a track record of consistently profitable trading efforts.
To know more about her please visit: http://ebelekemery.freeblog.site/about