The world will experience a serious oil supply crunch within five to ten years unless there is a collapse in oil demand. This is the conclusion of a new Chatham House report, The Coming Oil Supply Crunch, which predicts a resulting oil price spike that could exceed $200 a barrel.
Professor Paul Stevens, the report's author, explains the dynamics of current high prices in comparison with past oil shocks. The report argues that not enough money and expertise were invested in the 1990s to maintain excess capacity to produce crude oil if consumption continues along present trends. History shows us that whenever such excess capacity is run down, the oil price rises sharply.
All the more reason to sell your car and move to the city.
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