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    Oil Protection Factor
    Energy Hedging Data Management & Analysis

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Your sunscreen's SPF is 30 or higher. What's your hedge program's OPF?

The Oil Protection Factor (OilPF) Concept

A Growing Need To Hedge:
Increasing unpredictability in petroleum product pricing has led to a significant rise in the need for petroleum jobbers to hedge against their required purchases of petroleum-based products to support fixed price sales contracts. Similarly, volume petroleum consumers increasingly see the need to hedge against their operational petroleum requirements.

A Big Job to Manage:
Management of a petroleum hedging program entails the maintenance of voluminous data for operations, sales and hedging, along with the ability to measure individual values, as well as changes in the relationships of this data. Unfortunately, spreadsheets are not up to the task. Further, balancing operations and the financial markets is a specialized skill, yet most firms cannot afford to hire a staff expert to run the program.

Direct Experience with Both the Hedging and Operations:
For years, OilPF services and tools have helped clients manage and analyze their hedge-related activities. For even more years, in fact since the inception of energy hedging in 1978, our partner broker has supported and managed transactions and other financial activities for energy industry hedgers nationwide. As a team, we streamline your ability to manage your positions in the market and to measure and monitor the effectiveness of your hedging strategies, anywhere and anytime, online. We can help you test mock scenarios to determine whether you should hedge. Then, if you do hedge, we can support your planned, held, and liquidated market positions, including futures as well as options.

Gradual Market Rise Throughout Commitment Period
Operations Hedging Net Results
What Does OPF Mean?
The SPF of a sunscreen is a laboratory measure of the effectiveness of sunscreen; the higher the SPF, the more protection a sunscreen offers against the ultraviolet radiation that causes sunburn. Similarly, companies need to apply, maintain and monitor their protection against daily market fluctuations of petroleum prices versus fixed-price fuel contracts and internal operational consumption needs. The Oil Protection Factor (OPF) of a petroleum risk management plan is a measure of the effectiveness of hedges, whether planned or in place. The higher the OPF, the more protection a hedge portfolio offers.

Oil Protection Factor is the Energy Hedging Data Management & Analysis service of 9Ware, Inc.
For more about 9Ware, Inc. visit www.9Ware.com
Contact OilPF at support@oilpf.com