Wow, that is a bleak worst case scenario.
Peak oil production is just a situation in which no additional barrels per day can be pumped. It is only a problem if at that moment demand exceeds peek oil supply. If it does, then cue Kasz's scenerio. If it doesn't, then we are fine, but we have to remain vigilant.
Premumably, supply will dry up at a steady rate. We must therefore make sure that demand slows down at an equal or greater pace (of slowdown), if not the threat of the scenario will still loom.
Energy efficiently and changing people's views on energy is what will have to change soon and more so over time. The sooner people start voluntarily making those changes, the longer we will delay and even elliminate the need for governments to force the changes on us.
One day, and I hope to see it, the oil that gets pulled from the ground will go exclusively to the ends which it is best for: using it to make plastics and chemicals that can only be made with hydrocarbons. Right now, we burn most of those versatile ingredients.
Energy, we have hundred of sources of, but plastics that don't contain any oil dirivaties, forgettaboutit. (Sorry, I just watched Donny Brasco on Blu-Ray)
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