Energy Realities


It is a reality that our world continues to demand and use more and more resources. Global population has increased to 7 billion with projections of 9 billion in just a few years. We have learned that economic and social stability relies on having a sufficient supply of at least three critically important resources: food, water and energy. Shortage of even one of these and a country is subject to buying (importing) on the open market. Can anyone imagine the U.S. having to buy food and/or water? But yet, we have become all to accustomed to being a nation that buys energy to help meet our expectations as a world economic leader and powerful international ally.
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What You Need to Know About Oil & Gas Hedging


To Hedge or Not to Hedge
While some may see hedging as a complicated and advanced investing strategy, the principles behind hedging are in reality very simple. Hedging commodities allows investors to ensure predictable financial results by protecting against future price movements. By purchasing futures contracts, investors can lock in prices that are favorable to an organization to continue realizing profits over time. While limiting exposure to financial losses also limits the potential for gains, it does help protect investors during periods of market volatility.
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