Without subscribing to any particular permuation of the Peak Oil theory, the simple fact is that the environmental damage caused by the fossil fuel industry and the growth of demand will continue to cause pressure on the market that cannot be met on the supply side. Either the supply won't be there in sufficient quantity, or the costs of extraction and pollution abatement will increase along with the available supply. Either way, prices are headed
up, not down.
A coworker of mine just got off an engineering contract with Chevron in Bakersfield, CA. His work involved seeing what parts could be salvaged from their wells that had gone "dry" to move to other fields. He said, uncategorically, that supply is dwindling in that area and unlike in the past, they are not simply buying new equipment but reusing old parts. He interpreted this as a lack of confidence in their ability to open new fields, so they want to stock up on replacement parts by salvaging from inoperative wells.
I first heard about peak oil on the Art Bell show, and it is probably the first of his guests that actually impressed me. This one may have legs.