Supply has become increasingly inelastic. We have the same level of world supply we did 7 years ago despite the change in price. All that production from new technology isn't enough to replace the traditional plays that are going offline. They're more expensive than traditional recovery methods in terms of money, time, and capital invested and have a lower EROI. Higher prices make those sources marginally profitable for the producers. They don't make oil any more economical for consumers or from a macro perspective. And if there is no demand above a certain price level, then there is no increase in production.
Peak oil isn't a question of whether or not we have the technological capability to produce more. It's about whether we can increase our overall economic output enough to afford the increasing marginal costs of production, refinery, and distribution.
This chart obviously needs updating, but you can see what has happened to our economic output since 2000 in terms of being able to afford more oil.
