I misunderstood why you referenced that particular price. My memory was that $40 had been a historic high prior to Katrina.
Look at this chart for comparison.
Link because WTRG.com doesn't like hot linking:
Keep in mind with the linked chart, that the slow down was My memory was that $40 had been a historic high prior to Katrina.
Katrina was in late August 2005. We had been above $40 a barrel for crude oil for over a year by that point.
Keep in mind with the linked chart, that the slow down was
the slow down started before the drill rigs started to idle. Projects were put on hold, equipment orders were canceled, engineering/design laid off. Rigs at that point were on extended contracts to keep from loosing them. Mid 2008 it was getting tough to get a rig for just a couple holes. Companies had to make longer commitments.