High oil prices -ousing reduction in volume

another example of greed

Bizarre Economics: Why High Oil Prices Have Reduced SupplyBy Matt Badiali, editor, S&A Oil Report High oil prices are reducing oil supply.

Nationalization changes that calculation entirely. Companies still take all the risk, but governments bank all the rewards. Less return to oil companies means less investment in exploration. In the end, nationalization will lead to much higher oil prices.

Hugo Chavez hired his cousin to run PDVSA, the state oil company. In spite of record oil prices, the company ran up $12 billion in debt in 2007. In addition, it could wind up responsible for another $10 billion in compensation to Exxon.
That kind of nepotism will eventually destroy the petroleum industry in many of these countries, much as it's done in Mexico. Pemex, the national oil company, is now more than $42 billion in debt, and its single best asset, the Cantarell field, is a debacle. Its production is declining precipitously (down 28% in 2006 alone).
In the meantime, demand for oil is rising... relentlessly.

China, for example, plans to build at least eight 200,000-barrel-per-day refineries in the next five years, which will compete with the U.S. refiners for supply. And, paradoxically, higher oil prices have led to higher demand in the Middle East, as oil wealth trickles down.
So where does that leave us?

Canada. Much of the world – and its oil companies – have turned to Canada for a solution. Canada holds some of the largest untapped oil reserves. It's in the most politically stable region of the world. It's protected by the world's greatest military power.