The Power of Price Protection
Powerhouse specializes in an intelligent, full-service approach to protecting profit margins from volatile energy prices while help clients grow their businesses. We believe that intelligent decision-making requires a grounding in the fundamentals of both petroleum economics and energy trading. Many clients are new to hedging and may not understand that its function is to prevent loss — not to “make a killing in the market”. Powerhouse commits substantial resources to teach our clients the ins and outs of hedging, including information on trading energy futures and options. We provide this kind of support because in our experience, clients with a high comfort level are more likely to be successful in their hedging program.
Powerhouse works with clients to design, implement and monitor hedging programs.
Many energy professionals realize they must identify the risk that price changes pose to their business and take protective action. However, it can be a surprisingly difficult task complicated by the dynamics of the energy markets.
For example, you may want to protect yourself against higher prices while passing decreases along to customers, or expand storage at seasonally advantageous prices, or establish floor or ceiling prices for marketing purposes. Perhaps doing all three seems at first like the way to go. Our job is to help you identify the magnitude of potential risks and then help you clarify the goals you’re trying to achieve.