Mercatus Energy Advisors - Crude Oil & Natural Gas Hedging Study

8/7/2019 Mercatus Energy Advisors - Crude Oil & Natural Gas Hedging Study

1/12

Cuxgh Ilb $ Jkwxukb Oks MhgoljoK swxg| id ljghqhjghjw h}qbiukij kjg quigxcij

cifqkjlhs lj Kxswukblk" Ckjkgk kjg wmh Xjlwhg Swkwhs*


2/12

H}hcxth Sxffku|Wmls swxg| ks cijgxcwhg wi uhthkb wmh cxuuhjw swkwh id mhgoljo kfijoswsfkbb wi flgsl~h ljghqhjghjw cuxgh ilb kjg jkwxukb oks quigxchus*

7;( id swxg| qkuwlclqkjws uhoxbkub| mhgoh wmhlu cuxgh ilb kjg jkwxukb oksquigxcwlij" mlbh 5


3/12

LjwuigxcijWmh cuxgh ilb kjg jkwxukb oks fku`hws mkth h}qhulhjchg slojldlckjwcmkjohs gxuljo wmh qksw wi |hkus* Ehwhhj cuxgh ilb fitljo duif ';74wi '33 lj bhss wmkj dlth fijwms kjg jkwxukb oks oiljo duif jhkub| ';7 wi'3 ithu wmh cixush id k |hku" wmh qksw hlomwhhj fijwms mkth ehhjljcuhgleb| tibkwlbh wi sk| wmh bhksw* Kggljo ljsxbw wi ljnxu|" wmh swkwh id wmh

ckqlwkb fku`hws mks bhdw fkj| quigxchus lwmixw kcchss wi fxcm jhhghgckqlwkb*

Lj wmhsh wlfhs id slojldlckjw cmkjoh kjg xjchuwkljw|" lw ls hsshjwlkb wmkw ilbkjg oks quigxchus hfqbi| siblg mhgoljo kjg fku`hwljo swukwholhs* Wmhshswukwholhs lbb jiw ijb| kbbi quigxchus wi sxutlth wmh fisw cmkbbhjoljowlfhs" exw lbb kbsi kbbi wmhf wi h}chb lj wmh ehsw id wlfhs ks hbb*

Wmh qulfku| dicxs id hjhuo| uls` fkjkohfhjw ks lw uhbkwhs wi cuxgh ilb kjgjkwxukb oks quigxchus ls mhgoljo* Cijsh{xhjwb|" wmls sxenhcw diufs wmh

eksls id wmls swxg|" mlcm swulths wi kjkb|~h wmh cxuuhjw mhgoljo qukcwlchskjg swukwholhs id cuxgh ilb kjg jkwxukb oks quigxchus*


4/12

Ithutlh44( id wmh swxg| qkuwlclqkjws ljglckwhg wmkw wmhlu cifqkj| ls qultkwhb|mhbg*

83( id wmh qkuwlclqkjws ljglckwhg wmkw wmh| iqhukwh wmhlu ksshws" ;3(swkwhg wmkw wmh| kuh jij&iqhukwius" mlbh wmh uhfkljghu mkth eiwm

iqhukwhg kjg jij&

iqhukwhg ksshws*

3?( ljglckwhg wmkw wmh| fku`hw wmhlu ij quigxcwlij" 54( mkthixwsixuchg wmhlu fku`hwljo wi k wmlug&qkuw| fku`hwhu" mlbh wmh uhfkljghuhfqbi| k cifeljkwlij id eiwm ljwhujkb kjg h}whujkb fku`hwljo*

Swxg| qkuwlclqkjws ljglckwhg wmkw wmhlu kthukoh fijwmb| jkwxukb oksquigxcwlij ls 8;5"111 FFewx" kthukoh fijwmb| cuxgh ilb quigxcwlij ls?


5/12

Ckqlwkb;3( id uhsqijghjws sklg wmh| kuh uh{xluhg wi mhgoh e| wmhlu bhjghus iuljthswius* Wmh uhfkljghu kuh jiw uh{xluhg wi mhgoh iu kuh jiw cxuuhjwb|uh{xluhg wi mhgoh*

Id wmish uh{xluhg wi mhgoh" 53( kuh uh{xluhg wi mkth mhgohs h}whjgljo

;3&

57 fijwms" mlbh ;8( kuh uh{xluhg wi mkth mhgohsh}whjgljo 58&34 fijwms* Wmh uhfkljghu kuh uh{xluhg wi mhgoh tku|ljogxukwlijs ekshg ij fku`hw cijglwlijs*

4;( id wmh qkuwlclqkjws ljglckwhg wmh| gi jiw hfqbi| mhgohKccixjwljo" mlbh 5?( gi hfqbi| mhgoh kccixjwljo* Wmhuhfkljghu ljglckwhg wmkw wmh| huh xjkkuh ld wmh| hfqbi|hg mhgohkccixjwljo*

Uhokugljo wmhlu h}lswljo ghew" wmh swxg| qkuwlclqkjws ljglckwhg wmh

dibbiljo>


6/12

Mhgoljo_mhj ks`hg mi fk`hs wmhlu cifqkj|s mhgoljo ghclslijs" ks hbb ksmkw qhuchjwkoh id wmhlu h}lswljo quigxcwlij ls cxuuhjwb| mhgohg" wmhqkuwlclqkjws uhsqijghg ks ljglckwhg lj wmh cmkuws smij ehbi*


7/12

Mhgoljo Cijjxhg37( id wmh swxg| qkuwlclqkjws ljglckwhg wmkw swkebh kjg quhglckebh cksm

dbi ls wmh fisw lfqiuwkjw ksqhcw id wmhlu mhgoljo kcwltlwlhs" mlbh 5


8/12

Mhgoljo Sxcchss_mhj ks`hg mi wmhlu cifqkj| ghwhufljhs mhwmhu wmhlu mhgoljo

kcwltlwlhs kuh)mkth ehhj sxcchssdxb>

78( swkwhg wmkw hswkeblsmljo swkebh kjg quhglcwkebh cksm dbis ls wmhlu

ghdljlwlij id sxcchss*

5


9/12

Mi Wi Lfquith Mhgoljo_mhj ks`hg mi wmh| cixbg fisw lfquith wmhlu cifqkj|/smhgoljo kcwltlwlhs>

75( sklg xwlbl~ljo mhgoljo swukwholhs wmkw ehwwhu uhdbhcw wmh cifqkj|/s uls`wibhukjch" oikbs kjg ienhcwlths*

3;( sklg wmhlu mhgoljo ixbg eh fisw lfquithg e| iqwlfl~ljo wmhluh}lswljo mhgoh qislwlijs*

53( sklg ehwwhu h}hcxwlij kjg lfqbhfhjwkwlij id mhgoljo swukwholhs*

7( sklg wmhlu mhgoljo kcwltlwlhs ixbg eh fisw lfquithg ld wmh| huh kebhwi lfqbhfhjw swukwholhs wmkw ixbg kbbi wmh xsh id fku`&wi&fku`hwkccixjwljo*


10/12

Mhgoljo Gkwk $ Ljdi_mhj qkuwlclqkjws huh ks`hg ld wmhlu cifqkj| uhchlths mhgoljo kjg)iufku`hwljo kgtlch" gkwk iu ljdiufkwlij>

54( ljglckwhg wmkw wmh| uhchlth wmls ljdiufkwlij duif wmhlu ekj`

57( sklg wmh| uhchlth lw duif wmhlu fku`hwljo cifqkj|

57( uhchlth lw duif wmhlu mhgoljo $ uls` fkjkohfhjw kgtlsiu*

;;( uhchlth duif wmhlu dxwxuhs eui`hu iu cbhkuljo dluf*

;3( sklg wmh| gi jiw uhchlth kj| mhgoljo iu fku`hwljo kgtlch iuljdiufkwlij duif wmlug&qkuwlhs*

_mhj ks`hg mkw w|qh id ljdiufkwlij wmh| ixbg bl`h wi uhchlth ks lwuhbkwhs wi mhgoljo kjg fku`hwljo" h uhchlthg wmh dibbiljo uhsqijshs"kfijosw jxfhuixs iwmhus>

Kj h}qbkjkwlij id wmh uibh sqhcxbkwius qbk| lj shwwljo qulchs ij k gklb|eksls*

Kgtlch ij mkw mhgoljo ljswuxfhjws wi xwlbl~h lj tkulixs fku`hw cijglwlijs*

Ghsculqwlijs id wmh fhwmigs kjg ehjhdlws id mhgoljo*

Cifqkulsij id k uls` fkjkohfhjw quioukf thusxs sqhcldlc ijh&idd mhgohwukjskcwlijs*


11/12

Fhwmigibio|Wmls uhqiuw quitlghs kj ithutlh id wmh cxuuhjw mhgoljo qukcwlchs id sfkbbwi flgsl~h cuxgh ilb kjg jkwxukb oks quigxchus* Wmh wmluw|&hlomwqkuwlclqkjws id wmh swxg| huh ljtlwhg wi qkuwlclqkwh tlk hfklb kjgwhbhqmijh* Wmh swxg| ks cijgxcwhg ijbljh gxuljo wmh Sxffhu kjg Dkbbid 511


12/12

Fhuckwxs Hjhuo| Kgtlsius53;; Ckjkb Swuhhw" Sxlwh 31=Mixswij" W] ??113Whb> +;*?;3*

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Mercatus Energy Advisors - Crude Oil & Natural Gas Hedging Study