The Oil Shock That Never Was: How Shortage Warnings Missed the Mark

  • Companies, ministers predicted a supply shock on spending cuts
  • Drillers reset costs, became more efficient during price slump
Venezuela Sanctions Prompt Wave of Oil Selling, Baruch Says
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Three years ago, influential figures in the oil industry were sounding a clear warning: prices were too low, investment was collapsing and by the end of the decade the world would face a shortage.

In reality, the market today is looking at several more years of plenty, so much so that OPEC is beginning its third year of production cuts just to prevent a surplus.