by Doly » Tue 30 May 2006, 05:30:05
$this->bbcode_second_pass_quote('pea-jay', '
')Clarification: Only if their production falls off (fails) without any obvious reason to affix blame upon, might the masses get it. And then only if there isnt an economic recession to take the heat of oil demand in the first place.
Supply and demand are a feedback loop, you know. Oil is getting bought and sold all the time. In fact, given that prices are rising, it must mean that some people go to get their oil and don't get it (because it's more expensive than they can afford to pay).
Oil production is already less than demand, or prices wouldn't be rising. And rising oil prices will eventually cause a recession. So it will never be as clear cut as you say: production clearly falling off with no obvious reason, and no economic recession to take away demand.
This doesn't mean that people won't eventually figure out what's happening. I think any savvy investor has pretty much figured it out, for example. Papers here in the UK are already talking about the "energy crisis" as if everybody knows there's an energy crisis. What's happening is that, instead of one big event when everybody realises at once, people are discovering it gradually.
But that doesn't exclude the possibility that some big event happens sometime that makes anybody who's still clueless realise what's going on.