USNews.com: World supply is so precious that more price spikes are inevitable (1/10/05)

USNews.com: World supply is so precious that more price spikes are inevitable (1/10/05)

Where did all the spare capacity go? To fuel all those jobs that have fled U.S. shores for Asia, with the world's two most populous countries, China and India, leading the pace in 2004. In fact, Asia accounted for nearly half of the 3.3 percent rise in world demand to 82.4 million barrels per day, the biggest increase since 1976 and "the single most important reason" for high oil prices, says CERA's Burkhard. Tens of thousands of factories across China now run on stand-alone diesel-oil generators--a reliable source of power but one that gobbles fuel.

But then they interestingly add:
Fortunately, manufacturers are expected to switch to the electric grid as new coal and hydroelectric plants come on line, which is why many experts predict China's oil demand will ease somewhat in the coming year.

as if demand is gonna go down, when instead it will merely plateau (and then only if you are extremely lucky).