We need to improve Energy Efficiency particularly in oil-sector. In a prediction about the future, The International Energy Agency (IEA) has created a phobia for scarcity of oil which has increased the price of oil up to $75 or more per barrel. In a forecast for demand of oil they have said that there would be increase in demand of 95.8 million barrels per day in 2011 from its present demand of 86.1 mbd. They are expecting the bulk of the additional demand will come from USA, China and India. In India, the demand of petroleum products had shot up 31% and have crossed 5% GDP. To keep oil price steady, it is necessary to increase the supply according to world demand. IEA has sent a request to OPEC, who is responsible for two-thirds of world oil export, to step up supplies. But OPEC is not in a mood to oblige. Due to supply short fall from Nigeria and nuclear dispute with Iran, the prices has increased above the implicit floor price. The present rise in price is due to imbalance between supply and demand. There is a sharp increase in world GDP and this is increasing the demand for oil at a fastest rate. On the other hand there is a sharp reduction in oil producing capacity and investment in oil refineries is also in southward. This is particularly true for Iraq, Iran and Venezuela. Nigeria plant is unlikely to be opened in near future. Due to this imbalance of demand and supplies, the oil price may go up to $100 a barrel in near future. To reduce the demand, the substitution by ethanol is underway. There is ample scope to improve the efficiency in the use of oil. Everyone should work in that direction