In the oil and gas industry, energy trading and risk management (ETRM) fill crucial functional gaps due to innovative pricing and capacity planning abilities.

FREMONT, CA: The energy trading and risk management (ETRM) structure fills crucial functional gaps in the recording, processing, and settlement of commodity transactions in the oil and gas industry due to innovative pricing and capacity planning abilities.

Many of these solutions are displaying their age. They are focused on older technologies that have not adapted well to evolving market environments, nor have allowed rapid implementation methodologies such as Agile. As a result, new costs for introducing ETRM continue to grow, as do existing costs for support and maintenance.

Recent consolidation trends among providers of ETRM solutions have lowered the number of vendors but not the number of product choices. Software updates continue, but they are often behind schedule and so far behind market relevancy in a continually evolving world. For current and prospective clients, investment roadmaps for several ETRM products are vague.

ETRM Technology Landscape Is Evolving

The merger of the major vendors in the ETRM sector has decreased the number of players but has not reduced the number of potential software products nor contributed to rising investment in the product. Through postmodern technology architectures and modern implementation methodologies, a new generation of recruits have made substantial advances in resolving some of the historical constraints of ETRMs.

Key features of a postmodern solution include the following:

• Modular – Products built from scratch to provide independent abilities and designed to promote integration through exposed interfaces of application programming (APIs).

• Agile Enabled – Combined with their modularity and specialization, straightforward configuration options enable easier and iterative implementation.

• Cloud-First – Moving beyond solely hosting legacy on-premise solutions or providing software versions as a service (SaaS) to provide accurate digital platforms focused on the cloud.

• Specialized – User-centric architectures explicitly designed to provide an integrated user interface for such features unique to a market or commodity.

Solutions with these abilities promise the following:

• Accelerated Roadmaps – Component development cycles lead to quicker implementation and acceptance of new features and capabilities.

• Lower Implementation & Operating Cost – Reduced total ownership costs, powered by shorter deployment cycles and cloud-scale platforms' benefits.