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OEF Rapid Review Articles

American oil explorers are shrugging off the 14% slide in prices this year. The price would have to drop to the $30s or lower to dent the bottom line of many drillers now working U.S. shale fields. That’s because many producers have already locked in future returns with financial contracts that guarantee the price of their oil for most of the rest of the decade. “We’re in a boom again in Texas…” said Michael Webber of the University of Texas’ Energy Institute in Austin. “The cowboy spirit is back. Hedging is playing a big role.”
LINK TO THE SOURCE ARTICLE:
Oil At $40 No Problem: Hedging As A Shield

 

 

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