I'm leaning towards number two along with Spidey because I believe I've always seen a wish-list SOR of 2.6 - 2.7 (ref page 27 of the summer/fall 2009 presentation) while we haven't ever seemed to achieve anything near that level. I see we hit 3.5 at GD in 2010 and 3.8 CSOR in 2011 (Q1 Financials page 9).

From what I recall, lowering the SOR would be one of the best methods of increasing margin. Hence the investment in the high-temp pumps and etc.

Love the intentional production restraint theory. Even so, volume efficiencies would seem paramount.