Just remember that the cure for low prices is low prices. I’ve seen figures that worldwide demand has only dropped by about 5% (From something like 87 million barrels a day to about 83 or 84). Also, I’ve seen discussions of peak oil framed not in terms of “we’re running out” but in terms of we’re close to the limits of the RATE at which oil can be produced with the fields and infrastructure that exist worldwide. If that’s so, dramatically higher prices will accompany any increase in demand.
Which will again reduce demand. Sarah, we need you!
It will take a while, but I think that you are right. All investment in oil exploration/development (both here in North America and overseas has come to a halt. Sooner or later that will lead to tight oil supplies and higher oil prices.