Don't worry too much about $100 oil

From the Lifeboat foundation blog: "It should be noted by those of us more aware of the ramifications of peak oil and the impending oil supply shock that such a drastic reduction in oil availability represents one of the clearest and most present threats to the stability of a global peace and the longevity of mankind."

I disagree. Markets will protect us against any oil supply shock. As the supply of oil goes down markets raise the price of oil. Such a price increase causes:

1) Consumers to use less oil,
2) Firms to seek out more oil, and
3) Innovators to find alternatives to oil.