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The Outlook for the Global Supply of Oil: Running on Faith?

Staff Discussion Paper 2009-9 Olivier Gervais, Ilan Kolet
The dramatic reduction in global demand, and the decline in the spot price of crude oil in the second half of last year, may have significant implications for the future supply of oil. Investments in conventional methods of extraction have been constrained, since easily accessible oil reserves are typically concentrated in countries with geopolitical uncertainty and/or state-run oil companies.
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