The largest oil companies, and some of the smaller ones as well as most of the smallest, don't hedge. This means that, when oil is $127 on Nymex, that's what the no-hedgers are getting at the pipeline, or something equivalent based on what they're selling into the pipe and where they are geographically. An oil and gas company that hedges may have locked in some percent of their oil and gas production months ago at $80/barrel and $8/MMBtu. They may be getting more at the pipeline for it, but they're writing checks to a financial/hedging partner for the difference. Investors should note that some oil and gas companies' all-in costs may be $60/barrel and $6/MMBtu to find, produce, sell and find again. Their margin isn't $60/$127 or $8/$12. It's $60/$80 and $6/$8. Americans should note that also getting rich off higher oil and gas prices are financial partners, the banks and other hedging counterparties that are...trying to work out of their subprime mortgages. While oil prices at $100 made sense, considering the weaker U.S. dollar, $127 just doesn't add up. And, the Nymex speculators consist greatly of financial insitutions that are heding counterparties. –Nissa Darbonne, Executive Editor, Oil and Gas Investor, A&D Watch, Oil and Gas Investor This Week, www.OilandGasInvestor.com; ndarbonne@hartenergy.com