Summary:
- Permian operators began hedging oil prices at $40/bbl and continue at $50/bbl with additional hedging from Eagle Ford names.
- Increased volumes of hedging provide a short term ceiling
to oil prices, at least until operators have enough revenues guaranteed
to satisfy banks.
- Given the large number of barrels unhedged through 2016
and into 2017, this could continue for a couple of months, but could
take longer if oil prices pullback.
There is a small amount of discussion regarding the Bakken in the Williston Basin.
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