Good posts Sharky, Spidey, Rex & M-Dog regarding hedging. Something WRT (with respect to) hedging has been dancing around on the fringes of my thoughts for quite some time, that I just can't seem to put my finger on. It has something to do with hedging (laddering) on the way up (price of oil), but what happens on the way back down? Say we drop hedges every 6 months on the way up, we drop hedges every 6 months on the way down, what's the point? If we put in hedges at $80 now for 6 months, and 7 months from now the POO is at $45 ... then what? If we get a $90 POO should we hedge for 1 year?