Oil Field Hedging

[kegen]

I'm working at a project at Uni, were we're supposed to maximise the profit of an oilfield in 2005. With other words, we have perfect foresight regarding prices (as we are in 2006 at the moment).

I was wondering if anyone had any suggestions on how to lock in as much profit as possible? I was also wondering if anyone could tell me if it possible to get historical specifications on options on crude brent traded in 2005, espacially at the end of August 2005?

Thanks...

 

[sahiii]

Hi,
Hopefully you trade with MCX or NCDEX? The specs of the contract are available in the corres sites for MCX its mcxindia.com. But i wonder what use of contract spec make for a retail trader!

If you trade in any of these Exchanges then u can trade on only futures contract. And if u have any clue about the direction of crude say u expect crude at 70$ then the stratergy is simple BUY A FUTURE CONTRACT.

Kindly share ur views about crude and query if any.
thanks

 

[bkhanna1]

Hi there,

The best way to lock the full value of the filed is to think of it in terms of a series of options. Are you familiar with what real options are? If not look into it. Also look at the FEA website and see what they have to say about it. There are some really useful white papers on asset valuations that may be helpful to your cause......

Good luck!

 

[kegen]

Thanks for your help guys! Looking at the mark we got, it proved really useful....

 

[chetan_nahar]

Hi,Iam A New Trader
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