The collapse in oil prices from record highs last year will constrain investment in future supplies, potentially supporting oil prices, said Daniel Yergin, chairman of IHS Cambridge Energy Research Associates, Wesdnesday. In remarks prepared for testimony to a Congressional panel, Yergin said that while demand can shift abruptly in response to changing global economic conditions, it takes years for production to react. "As the economy picks up, spare capacity will start to erode, and the oil market could tighten again in the first half of the next decade," Yergin said. "The result could be another adverse shock to the U.S. economy and global energy security."
