As Crude Oil Approaches $40/BBL, Warren Buffet Provides Great Hedging Advice
Are crude oil prices headed back below $40/BBL or even $30/BBL? Prompt NYMEX WTI futures settled last night at $42.92/BBL, while prompt Brent futures...
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Three-Way Collars: A Conservative Airline Fuel Hedging Strategy
In a previous post, An Alternative Oil Hedging Strategy Using Three Way Collars, we explored how oil and gas producers can implement a conservative...
Is Your Team Well Prepared to Manage Your Energy Price Risk
As many companies are currently planning for 2017 and beyond, now is an ideal time to review your energy risk management program, including whether...
Six Key Steps to a Succcessful Energy Hedging Program
1. Identify, Analyze and Quantify All Risks Identify all of the company's energy commodity related risks including market, basis, operational,...
Bunker Fuel Hedging & Price Risk Management - Call Options
In the first post in this series, Bunker Fuel Hedging & Price Risk Management - Swaps, we examined how companies in the maritime and shipping...
Oil & Gas Hedging with Deep Out-of-the-Money Options and a Limited Budget
The need for effective hedging and marketing is greater in the current price environment i.e. $50/BBL than it is in a higher price environment i.e....
Bunker Fuel Hedging & Price Risk Management - Swaps
As crude oil and bunker fuel (fuel oil) prices have been extremely volatile since we originally published this article, we thought it would be best...
Energy Price Risk Management - 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...
Oil & Gas Producer Hedging - What Price is High Enough?
The prompt month NYMEX WTI contract settled at $107.26/bbl on June 20, 2014. That day would prove to be a major inflection point in the market. The...
Setting Price Targets: A Viable Energy Hedging Strategy?
Hedging crude oil or natural gas when the market hits a producer's target price is neither a way to manage price risk nor to maximize the price...