What Do You Need To Know About Energy Hedging & Risk Management?
As our blog approaches its third anniversary, we want to know what aspects of energy hedging and risk management you want us to cover, and from what...
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Sell Crude Oil - Buy Natural Gas - Hedge or Widowmaker?
In June of 2011, in a post titled Energy Hedging Myths Demystified - Part I, we took addressed the age old theory that crude oil and natural gas...
Large Energy Consumers Now Hedging Via E&P Deals
In recent weeks two large natural gas consumers, Nucor and LSB Industries, have announced that they are purchasing natural gas "working interests" to...
A New Look At Sovereign Oil Hedging Strategies
Last December, in a post titled Sovereign State Oil Hedging On The Rise, we highlighted the hedging initiatives of several sovereign oil and gas...
A Look At Volatility As It Relates To Crude Oil Hedging
In the most recent version of This Week in Petroleum, the EIA published an article on historical vs. implied volatility in Brent crude oil which...
Beware of Energy Derivative Marketers Promising Cash
In recent weeks we've been asked by several clients to review potential transactions which have been proposed to them by their counterparties. The...
Fuel Hedging: Swaps + Put Options = Call Options
As all large fuel consuming companies are well aware, fuel prices have increased significantly over the past couple months. Relative to their June...
Hedging Fuel Price Risk With Spreads On Options
Given the roller coaster in the oil markets over the past month, during which crude oil futures have moved nearly $30/BBL from the high to the low...
Are You Hedging or Speculating As Oil Trades At An 18 Month Low?
Heading into the weekend, it appears that Brent crude oil may settle the day at below $90/BBL for the first time since December of 2010, while WTI...
Crude Oil Hedging: Converting Swaps Into Synthetic Put Options
As a result of the recent decline in crude oil prices, we've received a couple of inquires from companies wanting to know how they can turn their...