Source: Elk Trading Company LLC Natural gas producers operate in a landscape shaped by weather volatility, LNG-driven baseload demand, and shifting production growth. In this environment, hedging isn’t a luxury—it’s fundamental risk management. While structures evolve with market conditions, three tools dominate E&P portfolios: swaps, costless collars, and three-way collars. Each carries a different balance of protection, opportunity, and complexity. Swaps The most widely use

Source: Pivotal Weather (December 1, 2025) As we turn toward the tail end of the year, the energy derivatives market is flashing clear signals of concern—and opportunity. Both December and January call-option activity on the CME Group’s energy complex show elevated volume in deep out-of-the-money (OTM) strikes, pointing to traders hedging for upside exposure amid a potential cold snap. Here’s what’s driving the shift: Recent weather-model runs from both the GFS (Global Foreca

Source: Elk Trading Company LLC The natural gas market is heading into a new era of volatility. As U.S. LNG exports and data centers surge, the share of baseload  (24/7/365) demand continues to grow — permanently altering the balance of flexibility that has historically smoothed seasonal swings. This shift means the remaining variable components of demand—industrial, residential, and power generation—will become more reactive to even minor shifts in weather, pipeline constrai

Source: GROK Energy markets expose a fundamental flaw in human decision-making: we misjudge risk. Daniel Kahneman, in Thinking, Fast and Slow, explains how our fast, emotional “System 1” often overrides deliberate reasoning. Nassim Taleb’s Antifragile trilogy adds that systems built on false stability eventually collapse under volatility. Together, they explain why billion-dollar energy failures keep repeating. Kahneman’s Cognitive Traps Anchoring Bias : After the 2014 oil cr

Source: Tradingview.com Natural gas futures are firming. The prompt contract has rebounded from recent lows, supported by...

Source: Randall Ruiz In 1983, two legendary CME traders made a bet that would become one of the most iconic experiments in financial...

Source: ChatGPT Climate change is no longer a distant threat—it’s a present-day reality. With weather disasters costing $145 billion in...

When considering a Power Purchase Agreement (PPA), it's essential to understand how the energy source impacts the contract structure,...