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The outlook for energy continues to look very strong and for the first time in the history of oil, it appears the days of boom and bust cycles may be over. Even if oil were to correct below $100, there is still substantial money to be made above $80. An economic slowdown is inevitable in North America and Europe but only a small percentage of the 2 Billion people in China and India drive vehicles. As the middle class grows by huge amounts in those countries, the demand for oil should more than offset the impact of a slowdown in North America.
The Hubbert peak theory states that for any given geographical area, from an individual oil-producing region to 
the planet as a whole, the rate of petroleum production tends to follow a bell-shaped curve. It is one of the primary theories on peak oil and something that is gaining more and more respect as the price of oil fails to fall below $100.
The Hubbert peak theory is based on the observation that the amount of oil under the ground in any region is finite, therefore the rate of discovery which initially increases quickly must reach a maximum and decline. Extraction roughly follows the discovery curve after a time lag (typically about 35 years for development
OPEC unable to replace Irans production in case of war
2008-07-14 09:05. Headline news
The head of the Organization of Petroleum Exporting Countries warned that oil prices would see an "unlimited" increase in the case of a military conflict involving Iran, because the group's members would be unable to make up the lost production.
"We really cannot replace Iran's production - it's not feasible to replace it," Abdalla Salem El-Badri, the OPEC secretary general, said in an interview.
Iran, the second-largest producing country in OPEC, after Saudi Arabia, produces about four million barrels of oil a day out of the daily worldwide production of close to 87 million barrels. The country has been locked in a lengthy dispute with Western nations over its nuclear ambitions. In recent weeks, the price of oil has risen higher on speculation that Israel could be preparing to mount an attack on the country's nuclear facilities. The saber-rattling intensified this week with missile tests by Iran. That has further rattled oil markets because of concerns that any conflict with Iran could disrupt oil shipments from the Gulf.
"The prices would go unlimited," Badri said during the interview, referring to the impact of a military conflict. "I can't give you a number."