Oil Price Shocks and Market Fundamentals

Capital expenditure in the oil and gas sector has reportedly been declining since the precipitous fall of crude oil prices from the peak of about US$147 per barrel in July 2008. Speculation has inevitably been rife about a price shock occasioned by the inability of supply facilities to meet demand requirements (due to withdrawal of the enabling investment) when the global economy begins to rebound. The International Energy Agency has projected a price crunch by the year 2012, just 3 years away.
SeekingAlpha