With oil climbing above $70 a barrel, energy commodities have become a hot space for investors. Once mainly the preserve of oil companies and the producers and marketers of natural gas and power, these commodities have joined other "exotic" asset classes in attracting investors who seek new ways to boost earnings. Investment banks, hedge funds, and private equity firms have taken advantage of the high volatility of commodity prices, caused by recent geopolitical events, natural disasters, and rising global demand.

Now these recent participants face a fresh set of challenges as they contemplate a maturing market and reexamine their original entry strategies. Will those entry points continue to provide a sustainable growth platform? Has the core business of risk intermediation for corporate customers become overly competitive? And will players be capable of building the necessary skills and fully exploiting synergies with existing business units (for instance, traditional structured products divisions and emerging markets)?

There are areas where investors can continue to profit. However, the most interesting opportunities will require them to bring broader skills and deeper knowledge to the table.

Who's doing what

Financial institutions have mostly positioned themselves around well-understood liquid-asset classes such as crude oil and natural gas....