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Keywords: insurance policy
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Proceedings Papers

Paper presented at the Symposium on Energy, Finance, and Taxation Policies, September 19–20, 1988
Paper Number: SPE-18511-MS
... Petroleum's hedging its total crude production in November 1985 at $26.50 per barrel just before oil prices plunged to $12.00/barrel. 2 Viewed in this manner, hedging in the futures market is similar to buying an insurance policy. For independent producers, though, there are several disadvantages...

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