US year-ahead oil hedging up 9% on 2015: study

Hedging revenue set to plummet in 2017

oil drilling
Hedging revenue is expected to drop drastically next year

North American oil and gas producer hedging is on the rise, but revenue generated from hedging is set to plummet next year, according to a study by market data and analytics firm IHS Markit.

The study of 52 US and Canadian oil and gas firms found they had hedged around 24% of total 2017 production by the end of this year. This compares with just 15% of 2016 production being hedged a year ago.

"Firms are ahead of where they were last year in terms of the percentage of total production hedged at t