sluggishly, compounded by production shortfalls in oil-exporting countries. The report stated that as a result of the imbalance and low price elasticity, very large price increases occurred as the market attempted to balance scarce supply against growing demand, particularly from 2005 to 2008. The report forecast that this imbalance would persist in the future, leading to continued upward pressure on oil prices, and that large or rapid movements in oil prices are likely to occur even in the absence of activity by speculators. Hedging using oil derivatives The use of hedging using commodity derivatives as a risk management tool on price exposure to liquidity and earnings, has been long established in North America. Chief Financial Officers (CFOS) use derivatives to dampen, remove or mitigate price uncertainty. Bankers also use hedge funds to more "safely increase leverage to smaller oil and gas companies." However, when not properly used, "derivatives can multiply losses" particularly in North America where investors are more comfortable with higher levels of risk than in other countries. With the large number of bankruptcies as reported by Deloitte "funding [for upstream oil industry] is shrinking and hedges are unwinding." "Some oil producers are also choosing to liquidate hedges for a quick infusion of cash, a risky bet." According to John England, the Vice-chairman Deloitte LLP, "Access to capital markets, bankers' support and derivatives protection, which helped smooth an otherwise rocky road, are fast waning...The roughly 175 companies at risk of bankruptcy have more than $150 billion in debt, with the slipping value of secondary stock offerings and asset sales further hindering their ability to generate cash." To finance exploration and production of the unconventional oil industry in the United States, "hundreds of billions of dollars of capital came from non-bank participants [non-bank buyers of bank energy credits] in leveraged loans] that were thought at the time to be low risk. However, with the oil glut that continued into 2016, about a third of oil companies are facing bankruptcy. While investors were aware that there was a risk that the operator might declare bankruptcy, they felt protected because "they had come in at the 'bank' level, where there was a senior claim on the assets [and] they could get their capital returned." According to a 2012 article in Oil and Gas Financial Journal, "the combination of the development of large resource plays in the US and the emergence of business