The invisible hand preventing an energy crisis

As oil prices race toward US$60 per barrel it may seem paradoxical to say that we are not heading for an energy crisis. Undoubtedly for the short to medium term oil consumption will increase, which will continue to put pressure on oil prices and global growth. However, energy shortages as seen by the queues at gasoline stations in the 1970s are unlikely. To understand this one needs to look at the fundamentals of demand and supply and the drivers of rising oil prices.