Brian Gibbons

Hedging trends overall will not have a material impact on activity levels and production trends, activity levels and production trends will be driven by improved economics at lower price points due to lower capital and operating costs and efficiency gains.

We do think that we'll see another leg down from here, but when you peel back the onion, we don't think defaults rates will be as bad as some people think, yes, there are about 20-25 names that could be in danger, but we think many of them should be able to muddle through over the next year.

Banks are not looking to put 25 companies out of business. They will sit and take the fees.

The fiscal breakeven price for many cartel countries is over US$100. For Saudi Arabia, Kuwait and UAE it is more in the US$75-US$80 range. The longer it stays below those levels, the more it hurts.