This was clearly observed after the first oil shock of 1973. Conventional demand theory also states that as oil prices fall then consumption should increase. This has not been observed in existing oil markets. Price increases make greater economic impact than price decreases. Therefore the consumer looks to a supply shortage as the true descriptor of any oil crisis.
Supply depends on the rate at which any petroleum field is depleted.
This is in direct conflict with current thought that the oil era is at its end. The aggregate data in Figures 1 and 2 provide no indication of the oil price shocks that occurred in 1974 and 1979 however the disaggregate data does in Figures 3 and 4. This is not surprising since oil producers establish production levels based on aggregated reserves. Reported data show that documented production increased from 1970-94, implying that oil reserves have actually outpaced production over this period. This appears to contradict the well-accepted normal distribution model of steady depletion of oil reserves.