Shutting-In May Not Be the Answer for All Oil Producers, Says Kate Richard

The video discusses the company's hedging strategy for 2020 and 2021, focusing on oil prices above $50 with minimal debt. It highlights the need for crude prices to fall to production costs and the volatility in spot prices. The company is curtailing production in Oklahoma and working with partners to delay completions. Operational challenges, such as geological factors and the type of crude produced, complicate shutting down production. The industry needs significant CapEx cuts, and shut-ins are used to manage inventory.

What was the company's hedging strategy for 2020 and 2021?

• Hedge at oil prices below $30

• Hedge at oil prices above $70

• Hedge at oil prices above $50

• No hedging strategy

Why is it important to focus on future pricing rather than the spot market?

• Because spot market prices are always lower

• Because future pricing is irrelevant

• Because spot market prices are always higher

• Because future pricing is less volatile

What is one of the current strategies being employed in Oklahoma?

• Doubling production

• Maintaining current production levels

• Curtailing production by 25%

• Increasing production by 25%

What is a major challenge in shutting in production?

• There are no challenges in shutting in production

• It is too expensive to shut in production

• Geological factors and type of crude

• It is too easy to shut in production

What percentage of capital expenditure needs to be cut according to the speaker?

• 10%

• 20%

• 30%

• 40%