High Oil Prices are Starting to Affect China and India
High oil prices are reducing demand around the world. This is happening at a time when energy companies need the capital from their historically high sales to continue their expansion in exploration and extraction of new reserves. As the large reserves they have depended upon for decades start to decline in production, they now have to work harder for less oil, literally 'running to stand still'.
A result of the above trend will be ever higher prices (as a long term trend), and reduced availability.
In NZ, on the periphery of some very long supply chains, we need to be aware that this change is coming, and accept that the appropriate response is to reduce our dependence on oil as a matter of national urgency.