Credit-rating and research firm Standard & Poor's reports on the Top 10 trends in the oil and gas industry that will affect credit quality in 2008-both up and down.

No. 1 Not surprisingly, the first is strong oil prices. West Texas Intermediate prices have been volatile, but a drop in the price is expected due to economic fears and demand destruction. "Heightened fear of a recession has been one of the main causes, as growing inventories in the U.S. suggest that slowing economic activity is reducing demand," says Thomas Walters, S&P managing director. "Also, high U.S. gasoline prices appear to have destroyed some demand.

"Nonetheless, a collapse in crude oil prices is unlikely, ...