A New Source of Project Finance Capital Through Energy Derivatives by Peter C. Fusaro

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This article discusses the emergence of new financial instruments during the early 1990s that helped to manage long-term energy price risks for bot... (More) This article discusses the emergence of new financial instruments during the early 1990s that helped to manage long-term energy price risks for both producers and consumers. The author assesses the use of energy derivative products as a means to not only manage energy price volatility but also to raise capital. The use of over-the-counter options, futures, forwards, and swaps are examined as risk management tools. (This paper by Peter C. Fusaro, “A New Source of Project Finance Capital Through Energy Derivatives,” was published as Occasional Paper 20. Boulder, Colorado: The International Research Center for Energy and Economic Development, 1993. ISBN 0-918714-37-0). (Less)