As we all know we are currently in the midst of an all out credit crunch, every industry is feeling the wrath and most importantly people left, right and centre are being made redundant and losing there jobs it what could only lead to devastation for there families.

One of the worst effected industries at the moment though has to be the huge oil industries; we are even seeing the biggest oil millionaires in the world start to cut back on expenditure and make staff redundant.

But as we already know things will prevail and things will get a lot better than they currently are, recently the International Energy Agency has said that we could be in huge oil supply crunch by the time we hit 2010. At the moment there are no problems because the demand for oil is at a very minimal rate, but when we start to recover from the devastation of the economic downturn there will be a problem in production, especially if they do not get any capital investment.

Oil's increase from below $20 in 2002 to a record high near $150 last year was fuelled in section by increasing demand from China and other emerging economies which strained supplies. The oil demand slowed down a lot in 2009 due to the shear devastation of the banking crisis that spread throughout the world.

But as situations improve the oil industry will begin to get better, the only downfall would be if they did not receive investments which would slow production. We would have to pay more for our heating oil and our car fuel as the heating oil suppliers would have no option but to increase the heating oil prices to make them a healthy profit.

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