Advisers with Risked Revenue Energy Associates join Hart Energy’s Jessica Morales to break down their new book, “Risk is an Asset: Turning Commodity Price Risk into a Strategic Advantage.”
“The book offers upstream firms, at least those willing to adopt what we call process risk management, a recipe for success no matter what prices do,” said Wayne Penello, president and founder of Houston-based Risked Revenue Energy Associates.
Using decades of experience investigating traditional hedging practices, Penello and coauthor Andrew Furman, who serves as a managing director at Risked Revenue, have developed a groundbreaking approach to hedging. In their new book released Aug. 11, the pair explain the new approach, and how it will transform thinking about hedging strategies
Click here for more details on getting a copy of “Risk Is an Asset: Turning Commodity Price Risk into a Strategic Advantage.”
Jump to a topic:
- How can risk be an asset? (0:31)
- Gamble, risk and calculated risk (2:37)
- Motivation behind book (3:27)
- How much risk is too much? (6:20)
- May WTI contract (8:48)
- Volume of speculator paper (11:49)
- Hedging, luck or good business? (13:39)
- Industry’s path forward (15:12)
Companies eager to produce gas as a cleaner alternative to oil, like Chevron Corp., have also expressed interest in the Haynesville Shale.
Oasis Petroleum had initially announced the Williston acquisition in May, a month after CEO Danny Brown had taken the helm, in a cash transaction with Diamondback valued at approximately $745 million.
Carbon capture, utilization and storage technologies play a critical role in the energy transition. Will the oil and gas industry learn to adapt?