Shortage: fearful word for condition that never exists

Nobody likes the word "shortage."A connotation of panic shrouds the term. The fear seems strong that utterance of "shortage" among a group of consumers might lead to a run on available supply, hoarding, and soaring prices.Scarce is the politician, for example, who will describe current conditions in the oil and gas markets as shortage. It's easier to explain away elevated prices as a "war premium."Economists don't think shortage exists in nature. The market always balances at some price. Supply always equals demand. Nobody willing to pay the market price ever goes without supply.That's the theory, anyway. Logistical problems sometimes put an inconvenient distance between the w...

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.


Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.

Stay Connected