US shale’s financial blanket at risk of wearing thin in 2019 (Financial Times, December 23, 2018)

"One issue that has been highlighted by Philip Verleger, an energy economist, is the outlook for the hedging used by E&P companies to protect their revenues and reassure their lenders. Strategies vary, but the standard practice is for companies to put a floor under the effective price of some or all of their production by buying put options. Mr Verleger argues that those options have been an important factor in the collapse of oil prices to a 15-month low since October." Ed Crooks, Financial Times, December 23, 2018. Read more here.