HOG,

I don't buy your contention. Why wouldn't they just trottle back on production or cap some prime fields? Incidently, this is exactly what I expect to see more and more of. Producers are going to increasingly recognize its stupid to max out oil output. Contrary to conventional economics, deferred barrels are worth alot more, not less, especially at $114.

New car sales are up like 40% in Russia. Its the reverse Detroit effect- the economies of oil producers are booming. And booming economies mean more cars and more internal oil consumption.

Our pending energy supply contraction= no economic growth= insufficient debt service= chaos + oilwars.