I remember just a year or so back when oil hit $50 a barrel. Everyone was shocked at how high that was. It is amazing how quickly we adjust to these prices. I thnk oil may drop to around $65 (my guess) in the short term.

However I really believe the cycle will start again in 2009 or 2010, depending on how long and deep this worldwide recession is going to be. I think oil will spike again and within 5 years will reach $200 a barrel.

All the beaten up oil stocks will rebound (except the really bad ones) and I think there will eventually be a lot of consolidation. Plays like Americas and Sage will be right up there and may be takeover targets.

Hold for the mid or longer term and things will be good (or better at least)