Under $40

[mkarpoff]

I always hear talk about "support levels." How important do you think the $40 support level was now that it is broken down (at least for now)?

[dan_s]

Very important. It is impossible for these companies to plan when they don't know what their revenues are going to be in the future, which is why hedging programs are so important. There is almost nowhere in the shale plays that drilling makes sense at $30 WTI.

[bearcatbob]

Very important. It is impossible for these companies to plan when they don't know what their revenues are going to be in the future, which is why hedging programs are so important. There is almost nowhere in the shale plays that drilling makes sense at $30 WTI.

Perhaps we will see the rig count drop again and our team will stop committing drillacide!