The collapse of oil prices by 76% from July 2008 to January 2009 has brought apparent economic relief to both many developed and developing countries around the world. However, this precipitous collapse in price has stalled investment in the oil industry – many maintenance or development projects have been shelved or cancelled completely. So the decline in oil supplies will be even faster than we had originally anticipated. As future demand for oil picks up again from renewed economic development, the prices of crude oil are expected to soar to new record highs.

Key words: Oil price, oil supply, oil demand, economic development, Olduvai theory, peak oil.