Dear Editor,
In today’s article, “Get Oil Smart”, it should be clear that the $10 billion revenue assumption stated is not an annual figure. Instead, it is a total revenue comment, and the time frame to receive this total revenue has not been explicitly stated; hence I would caution against a rush to spend this forecasted revenue, as it is also surrounded by much uncertainty due to cost and price variables.
The prudent measure is to wait upon annual revenue from the oil industry, and then assign spending on prioritized projects for the following year. This will reduce the risk of both unsustainable spending and the undertaking of increased debt.
Use of the crude oil futures market may also provide a hedge for the associated revenue stream from the industry.
Best regards
Jamil Changlee
