The oil infrastructure is robust enough to deal with a 5% cut in supply.

Saudi Arabia has the oil reserves and the domestic capital to boost their production. But they might not want to increase their investments to boost production. They may want to influence the world price environment.

If investments do not come in a timely and sufficient manner, there will be higher oil prices, and global economic growth will suffer.

If this year's average oil price hits $50, then this will slash 0.8 percent of the world economic growth.

The issue in the oil business today is not the reserves but the money, the investment decisions, the investment climate.

What happened between Russia and the Ukraine will be an important wakeup call for Europe and countries that were thinking of leaving nuclear aside.