Not all US shale oil producers hedged their bets for 2020
Shale producers use various methods to hedge production but 43% are not fully covered, and most hedged at $50 a barrel
15 March 2020 - 09:04
New York/Denver — Oil prices have plunged so much that even US shale producers, who have paid for the industry’s version of income insurance, must deal with big holes in their budgets.
Crude oil prices have crashed about 50% this year, hit by the coronavirus pandemic and the surprise price war that erupted last weekend between Saudi Arabia and Russia. The US crude benchmark on Thursday closed at $31.50 a barrel, far below the $50 a barrel price where many companies hedged...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.