but only slightly. I personally think oil should be more in the $70-80 range, but why quibble.

My reasons are simple, most of the "new" oil to be developed in this country will come from various shale formations, areas of extreme conditions, such as Alaska, and equally expensive offshore fields.

Much of this oil has a "lift" cost of over $50 bbl, which means at anything lower than that the companies actually lose money from operations, much less get any type of return on investment.

I will agree that there is no valid reason for oil to be trading in the $100+ range, except for fear mongering and speculation, but that's what drives a free market, when oil plummetts, all those speculators will find themselves holding worthless paper, just like a couple of years ago.

Truth be told, even though it will effect my monthly cash flow, (I make most of my income from oil production) I wouldn't mind seeing a litte air let out of the market, right now I am neither betting on oil going up or down, I am simply waiting for some sanity to return to the market before making the plunge again.