With oil and natural gas prices levitating to record highs, who would have dreamed that such prices could actually be a problem for some oil and gas producers? But for many who hedged some of their production at lower prices, that’s exactly what they have-a Texas-sized problem called margin calls.
Today the energy industry is facing one of its greatest challenges - an aging workforce and not enough qualified people to step in and learn their jobs.
The discount rate commonly used represents the weighted average cost of capital (WACC) of the firm. Although the WACC has been used as a standard for the last 30 years, it is now obsolete.
In the wake of Hurricane Katrina, oil and gas producers in the Gulf of Mexico moved quickly to size up how hard a pounding they took from the powerful Category 4 storm.
