What Does the Future without Oil Hold?

Is this the year that oil production has peaked worldwide? Or will it be in 2007? It appears that oil production will be on a downward slide from here on out. What are the implications of less oil in the years to come? It doesn't seem likely that industrial based societies will be growing at a rate of 4-7% much longer. Steep international competition will cause the end of 'Globalism' and a trend towards regionalism. Military adventures over the possession of oil seem likely (oh yeah that has already happened). But will we be willing to go to war with China over oil in the future? What about a hydrogen based economy? Is that a fantasy or a coming reality? It seems to me that Americans will have to downscale their living styles. Air travel will become too expensive, maybe even travel by personal automobile. I would think the lack of oil will be the end of industrial agriculture and the reemergence of local farming. Could be scary times in the near future.