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The Power of Price Protection

Futures were first used in the 1840s to establish a forward pricing mechanism for
agricultural commodities. Gradually the emphasis shifted to include energy futures
as well.

Energy interests today face increased risk from fluctuating prices. So it’s little
wonder that now more than ever, energy futures are used to hedge energy price
volatility caused by weather, political tensions or other factors beyond your control.
Whether you’re dealing in petroleum liquids, natural gas or most other energy
products, the cost of fuel can be a significant amount of your operating budget.
And when prices are moving up and down, they can impose an expensive toll on your
bottom line.

Many energy industry professionals have turned to hedging mechanisms as a way to
protect against price volatility. They may use futures, or options to minimize
the risk of major price changes in the energy sector.

Together, we can shape a program specifically for your business with an eye toward
monitoring performance success.