Tag Archives: producer

Ideas for Energy Producers When Prices Have Tanked

Crude Oil Jan 11, 2015Unless you’ve just crawled out from under a rock, you’re well aware that the price of oil has declined over the past six months and, with it, the cost of energy. You see it when you fill up your vehicle with gasoline or when you pay your fuel bill to heat your home (unless you’re among the unfortunate who locked in a fixed price before the recent price collapse).

If you run a business, you’re even more familiar with this price change, including its effects on your bottom line. The change has impacted producers, marketers, and users. However, just because prices have plummeted does not mean that risk–and opportunity–have vanished. That proverbial horse may already have left the barn, but there are more awaiting their own escape. If you have a future interest in a commodity, the uncertainty of its price will always present you with the counterbalancing risk/opportunity dynamic. Rather than simply wallowing in the anguish of lost profits–or basking in the glow of unexpected gains–perhaps it’s time to move on, to consider what opportunities this new pricing environment presents for the future.
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