Open AccessBasic Derivatives for the Oil and Gas Company
Author(s) -
Mark Smith
Publication year - 2001
Publication title -
alberta law review
Language(s) - English
Resource type - Journals
eISSN - 1925-8356
pISSN - 0002-4821
DOI - 10.29173/alr511
Subject(s) - derivative (finance) , key (lock) , fossil fuel , energy law , petroleum industry , business , biochemical engineering , economics , computer science , chemistry , engineering , law , political science , organic chemistry , finance , environmental law , computer security , environmental engineering
This article provides a general overview of some of the basic derivatives available to oil and gas companies. The author begins by defining what a derivative is and briefly summarizing four basic kinds derive, of derivatives. The author offers other examples of derivative products and illustrates how oil and gas companies can design and utilize these products to meet their individual needs. The article includes a discussion of the 1SDA master agreement, which is used for most over-the-counter derivative contracts. As well, the article outlines some of the key regulatory provisions governing and affecting derivatives, with particular emphasis on Alberta.