Capacity constraints throughout the industry have become severe.

You've had not only a steady rise in actual oil and gas prices, but you have had a steady rise in the expected oil and gas prices by the companies. Spending plans appear to be robust.

What we are seeing here is the very natural and logical response of this industry to the pricing signals coming from the worldwide market. There is strong demand for their products: oil and gas.

Rapid demand growth has created capacity constraints that are supporting higher prices and expanding margins. Investments are beginning to add capacity, but at a rate that will likely be absorbed quickly by rising demand.

The U.S. refinery system has been showing signs of severe tightness. The shut-in of refining capacity from Katrina is then not so much a straw, but rather a large log on top of an already fully laden camel.

There's a lot of hype around it now, but they've done their homework on the real estate industry.