Subscribe

Your email:

Upcoming Events


singapore oil trading hedging risk management april 2015
houston energy trading hedging risk management june 2015

Complimentary Downloads


airline fuel hedging report

crude oil natural gas hedging report

The Mercatus Energy Pipeline

Current Articles | RSS Feed RSS Feed

Oil & Gas Producer Hedging & Financing - A Legal Perspective

  
  
  

This is a guest post by Jeff Nichols, partner at Haynes and Boone, LLP in Houston. Jeff  represents a variety of clients in the energy and finance industries with secured and unsecured credit facilities, project finance and other structured energy transactions.

Hedging is usually thought of in terms of cash-settled derivatives offered by lenders as part of a broader financial relationship tied together by a credit agreement and perhaps collateral documents. But many other transactions blend hedging and finance attributes. Focus on these different transactions becomes acute during times of financial stress, which drives concerns about enforcing remedies.


April 2015 Oil & Gas Hedging Update

  
  
  

Over the course of the past month forward crude oil and refined products have given up the gains of February and then some. Since our last update, one year forward prices for Dubai crude oil have led the complex lower, down 10.54% month-over-month while Brent, LLS and WTI are down 10.13%, 7.06% and 6.98%, respectively. On a year-over-year basis, the one year forward curves for WTI, Brent, LLS and Dubai are lower by 43.59%, 42.16%, 42.06% and 43.46%% respectively.

The Fundamentals of Oil & Gas Hedging - Costless Collars

  
  
  

This post is the fourth in a series where we are exploring (no pun intended) how oil and gas producers can hedge their exposure to crude oil, natural gas and NGL prices. The first three posts addressed how oil and gas producers can hedge with futures, swaps and put options.  

The Fundamentals of Oil & Gas Hedging - Updated

  
  
  

While the basic fundamentals of energy hedging and risk management don't change very often, the prices at which one can hedge clearly do. As such, we have decided that it would be prudent to update many our older posts which explore the basic energy hedging strategies available to consumers, producers, marketers, refiners and traders, so that they better reflect current market conditions.

The Fundamentals of Oil & Gas Hedging - Put Options

  
  
  

This post is the third in a series where we are exploring how oil and gas producers can hedge their exposure to crude oil, natural gas and NGL prices. The first two posts explored how oil and gas producers can hedge with futures (The Fundamentals of Oil & Gas Hedging - Futures) and swaps (The Fundamentals of Oil & Gas Hedging - Swaps), while this post will focus on how oil and gas producers can hedge with put options. In subsequent posts we'll explore how oil and gas producers can hedge with costless collars and other advanced strategies.

The Fundamentals of Oil & Gas Hedging - Swaps

  
  
  

This post is the second in a series exploring common strategies which can be used by oil and gas producers to hedge their exposure to crude oil, natural gas and NGL prices. You can access the first post via the following link: The Fundamentals of Oil & Gas Hedging - Futures. In subsequent posts we'll explore how oil and gas producers can hedge with options and more complex strategies.

The Fundamentals of Oil & Gas Hedging - Futures

  
  
  

This post is the first in a series where we will be exploring the most common strategies used by oil and gas producers to hedge their exposure to crude oil, natural gas and NGL prices.  

March 2015 Oil & Gas Hedging Update

  
  
  

After many months of declining prices, forward crude oil and refined products across the world have reversed course and increased since our February update. Since our last update, one year forward prices for Dubai crude oil have led the complex higher, up 15.16% month-over-month while Brent, LLS and WTI have increased 13.78%, 9.27% and 7.04%, respectively. On a year-over-year basis, the one year forward curves for WTI, Brent and Dubai are lower by 40.78%, 37.34% and 38.62% respectively.

Singapore & Houston - Energy Trading & Risk Management Seminars

  
  
  

Due to the continued popularity of our energy hedging, risk management and trading seminars, we are announcing two additional seminars which will be held in Singapore and Houston. As seats for both seminars are limited we recommend registering as soon as possible.

Energy Hedging - Better to be Lucky than Good?

  
  
  

You often hear people say, “It’s better to be lucky than good.” I go the exact opposite direction – Luck has the ability to hide bad management decisions. Going one-step further, bad decisions which lead to good results are often failures of management. This rings very true in the energy industry and is especially common when it comes to hedging decisions.

All Posts