U.S. shale oil producers are in line to suffer more than $10 billion in derivative hedging losses this year. E&Ps typically employ derivative hedging to limit cash flow risks and secure funding for operations. Rystad: operators currently have 42% of their total guided and estimated oil output for 2022 hedged at a WTI average floor of $55 per barrel. U.S. shale oil producers are in line to suffer more than $10 billion in derivative hedging losses this year if oil prices remain around $100 per barrel, Rystad Energy research shows. Many shale operators offset their risk exposure through derivative hedging, helping them to raise capital for operations more efficiently. Those who hedged at lower prices last year are in line to suffer significant associated losses as their contracts mean they cannot capitalize on sky-high prices. Despite these hedging losses, record-high cash flow and net income have been widely reported […]