Dark market hedges in the form of futures contracts mostly. It's a commodity so derivatives would not work the same way as bundling debt. - Eric Logan

So when it all goes to hell we won't be paying the bill again? - Todd Hoff

The demise of shale oil due to pricing like peak oil theory is greatly exaggerated. http://www.eia.gov/todayin... - Eric Logan

It became profitable when prices went high. Am I to believe the reverse is not true? - Todd Hoff

It depends Shale Wells already producing will continue though apparently they become "strippers" very low gallonage per day The NEW wells become unprofitable to bring in as price drops... Brand new guys who joined the party at $90 a barrel? Are probably toast! Add in fresh debt... I'd guess the beating is being taken on commodity market and in energy stocks more than debt bundling - WarLord

Boom and bust cycles are designed to shake out smaller players especially with a commodity as manipulated as oil prices. Breaking up OPEC is a worthwhile endeavor and regulation is a much bigger threat to this industry than price fluctuations. LNG though a bridge fuel is a huge threat to the status quo. - Eric Logan

The companies that did not lock in futures contracts higher than their cost of production either have to have enough capital to weather the storm or will be forced into bankruptcy selling off their leases and equipment investments at a loss to the stronger players it's planned consolidation with worldwide geo political implications. Sort of like a short squeeze on small wildcat operations. - Eric Logan

I'm not sure this is a normal "squeeze" - OPEC is awash in oil and demand keeps falling.. Wall Street Bankers cratered economy, nobody has a job, or a house or money to fill their gas tank. Demand isn't going to recover! The American Middle class is decimated and China as no middle class With their number one market dying Chinese are unlikely to find a middle class any time soon. Add in even modest improvements in energy efficiency and tiny advances things like wind and solar and energy industry is long term in a very bad place Hard to lock in production costs with futures when oil prices drop right past them into cellar - WarLord