White Paper The Data Compliance Challenge in Competitive Energy Markets

February 7, 2012, VANCOUVER, B.C., Canada -

White Paper The Data Compliance Challenge in Competitive Energy Markets


This article describes the changes in the business and regulatory environments that have occurred since 2000 from a data management and reporting context; and discusses specific attributes as may be required by law, regulation, or good business practice. The intention is to further provide detail on the specifications of data system requirements and available methods to meet new reporting standards. Data management has become a critical business consideration for all corporations operating in volatile energy markets.

The years 2001 and 2002 saw six of the ten largest bankruptcy filings ever. Those companies filing for bankruptcy included Worldcom Inc., Enron Corp, Conseco Inc., Global Crossing Limited, Pacific Gas and Electric Co. and UAL Corp, for combined pre-bankruptcy total assets over $300 billion dollars. In the energy industry specifically, Enron and PG&E represented almost one third of the combined pre-bankruptcy total assets.

Naturally, the repercussions for industry and economy were dramatic. As illustrated in the following figure, Dow Jones Industrial Average, Nasdaq and S&P indices plummeted to reach the nadir of the decline (bursting of the tech bubble, market crash or stock market correction depending on the reader’s perspective). The Dow Jones Industrial Average lost 38% of its value from a high of 11723 on January 17, 2000 to a low of 7286. NASDAQ lost a whopping 78% of its value and S&P lost 49%. The relevancy of the exchanges was seen as questionable by some market analysts. The NASDAQ has yet to recover and still sits at half its high today. The US dollar also declined against the euro, reaching a one-to-one valuation not seen since the euro was first introduced. Though there were other complicating factors such as the 911 terrorist incident, the bottom line was that there was a loss of confidence in the transparency of business operations and the integrity of corporate reporting.

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