Financial Liquidity Risk Management for Energy Industry Market Participants
© Copyright 2025, CCRO. All rights reserved. 6
Date Event Description Impacts Drivers
2021
Hurricane Ida
Impact on U.S.
Gulf Coast Energy
Infrastructure
Hurricane Ida caused extensive
damage to energy infrastructure
along the U.S. Gulf Coast, leading to
unexpected margin calls as
companies struggled to restore
production and manage fuel
shortages.
Severe disruptions to energy
production, price increases in oil
and gas markets, supply chain
challenges, and high insurance
claims.
Weather risk
scenario
2021-
2022
ERCOT Winter
Storm (Texas)
In February 2021, severe winter
storms led to widespread power
outages in Texas, triggering
unexpected margin calls for energy
traders, independent retail suppliers
and utilities, as power prices spiked
and grid operators faced financial
strain.
Energy shortages, price surges
for electricity, liquidity problems
for energy traders, and energy
price spikes that caused
financial strain across the
energy sector.
Weather risk
scenario
2021 Freeport LNG
Liquidity Strain
Freeport LNG faced cash flow issues
due to price volatility following the
Texas freeze and gas supply
disruptions, leading to margin
pressures.
Surging margin calls strained
liquidity, contract fulfillment
became difficult, and
infrastructure damage
worsened the company’s
financial strain.
Weather risk
scenario
2021-
2022
Energy Price
Spikes Post-COVID
Recovery
The post-COVID recovery led to
volatile energy prices, inflationary
pressures, and unexpected margin
calls for traders and producers like
Shell and BP, who were struggling
with cost increases and disrupted
supply chains.
Severe price volatility, inflation
in energy costs, strained supply
chains, and increased
operational costs for energy
firms.
Systemic risk
scenario
Extreme
volatility
2022
European Energy
Crisis Due to
Russia-Ukraine
War
The European Energy Crisis,
exacerbated by Russia’s invasion of
Ukraine, resulted in skyrocketing
natural gas prices and unexpected
margin calls for utilities like EDF, as
collateral demands spiked along
with the rising costs of energy.
Energy shortages, massive price
increases in natural gas and
electricity, liquidity crises for
utilities, and government
interventions to secure energy
supplies.
Political risk
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© Copyright 2025, CCRO. All rights reserved. 6
Date Event Description Impacts Drivers
2021
Hurricane Ida
Impact on U.S.
Gulf Coast Energy
Infrastructure
Hurricane Ida caused extensive
damage to energy infrastructure
along the U.S. Gulf Coast, leading to
unexpected margin calls as
companies struggled to restore
production and manage fuel
shortages.
Severe disruptions to energy
production, price increases in oil
and gas markets, supply chain
challenges, and high insurance
claims.
Weather risk
scenario
2021-
2022
ERCOT Winter
Storm (Texas)
In February 2021, severe winter
storms led to widespread power
outages in Texas, triggering
unexpected margin calls for energy
traders, independent retail suppliers
and utilities, as power prices spiked
and grid operators faced financial
strain.
Energy shortages, price surges
for electricity, liquidity problems
for energy traders, and energy
price spikes that caused
financial strain across the
energy sector.
Weather risk
scenario
2021 Freeport LNG
Liquidity Strain
Freeport LNG faced cash flow issues
due to price volatility following the
Texas freeze and gas supply
disruptions, leading to margin
pressures.
Surging margin calls strained
liquidity, contract fulfillment
became difficult, and
infrastructure damage
worsened the company’s
financial strain.
Weather risk
scenario
2021-
2022
Energy Price
Spikes Post-COVID
Recovery
The post-COVID recovery led to
volatile energy prices, inflationary
pressures, and unexpected margin
calls for traders and producers like
Shell and BP, who were struggling
with cost increases and disrupted
supply chains.
Severe price volatility, inflation
in energy costs, strained supply
chains, and increased
operational costs for energy
firms.
Systemic risk
scenario
Extreme
volatility
2022
European Energy
Crisis Due to
Russia-Ukraine
War
The European Energy Crisis,
exacerbated by Russia’s invasion of
Ukraine, resulted in skyrocketing
natural gas prices and unexpected
margin calls for utilities like EDF, as
collateral demands spiked along
with the rising costs of energy.
Energy shortages, massive price
increases in natural gas and
electricity, liquidity crises for
utilities, and government
interventions to secure energy
supplies.
Political risk
…continue with text
