Very informative article by Gail Tverberg explaining why oil supply is tight and prices high.
"On balance, it would appear that at best, oil production in the near future will be virtually flat, leading to more spiking of oil prices and greater world economic problems. Another possibility is that world production will begin to decline. The likelihood of decline would appear to be increased if more oil exporters encounter political disruptions, or if the world enters a major recession leading to an oil price decline."
Via Willy De Backer