Over the past decade, the energy "paper" market has grown into one of the largest traded markets in the world providing hedging instruments for the producer as well as the enduser of energy products. Because banks, stockholders, and other financial providers rely on a borrower's ability to generate cash flow to repay their investment, borrowers are increasingly turning to the derivatives markets to provide security against one of the most volatile markets in he world. The existence of this market has enhanced the ability of financial institutions to lend with confidence and appropriate aggressiveness to the oil and gas industry.

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