Stubborn inventory both at home and abroad are giving analysts reason to believe that this could just be another "summer of cratering" for the oil and gas industry. Reports of increased Libyan production to 900,000 bbls/day, "it's highest level in four years", along with increased US production and high inventory levels have caused prices to return to the low $40's. This price is critical for many E&P companies here at home - as this is the breakeven for many regions throughout the states. Another telling sign? Oil futures have declined by 20% from January's high and entered into a bearish market. This may not cause an immediate reaction by oil & gas operators, but could create a significant impact for 2018 drilling schedules.