While many make fun of economists--saying that if all the economists in the world were strung end to end around the globe, they would fail to reach a conclusion-- the same might be true for those predicting the direction of oil prices.


The issue started boiling over following an in-depth piece written by Daniel Yergin, the head of Cambridge Energy Research Associates, on the issue of oil supply. Yergin's thesis is that there are sufficient supplies of oil because of increased energy efficiency and a shift toward conservation. He argues that even with the growing demand in China and India, the focus on innovation will go a long way to changing the way the world produces and consumes energy.

His view was challenged by Matt Simmons, of Simmons and Co., weighing in on the matter in the Financial Times. Simmons, firmly in the peak oil camp, believes that even with developments in technology, the supply of oil is finite.