Oil 3 of 3

While teh crude markets are often that - crude and privative. The laws of oligopoly do not outweigh the simply demand curve; even though it is not always evident

New technology
Advanced methods of locating and extracting crude will inevitable lead to more complete exploitation of reserves. On average only 1/3 of the available crude in a single location is ever extracted. With new technological advances means that we can re-visit already "tapped out" fields.

Global Downturn
The USA has seen a recession, at least it appears that way, and if China's (and India) industrial revolution begins to peak then the need will also ease. Additionally, these emerging markets realize that their needs are a ecological drain, and they too will eventually become more serious about alternative energy sources.

Exploration
Offshore drilling; the Arctic Circle; Brazil; Gulf of Mexico; Nigeria, Sudan; and even the bottom of the Ocean

Substitutes
Economist estimate that by the year 2012 the USA will be giving farmers $92 billions dollars a year in subsidies, and this is just in the ethanol arena. Ethanol is in abundant supply, and there are numerous way to produce it. This will help curb our need for crude. Additionally, the next generation of nuclear reactors are on the drawing boards of the World's top scientific minds as we speak; those same scientist are also thinking of ways ti create synthetic crude. They have already made diamonds, oil is next.

I am in no way predicting that we will ever see prices near what we did in the late 80s and early 90s, when you could stilll get change for a buck and a gallon of gas, but I am saying that the market will eventually correct itself. We have used over 1 trillion barrels of oil since the mind 50s, and there may be 3 trillion barrels left, but just has human energy was passed over for animals, and animal power was elicpsed by steam, crude too will meet its match - one day, and when it does we can all fill our car up for less than $25 again.