Peak Oil is the point where oil production reaches its maximum as mature oil fields stop producing, and fewer and fewer new ones come online.
Russia which is almost tied with Saudi Arabia as the worlds largest oil producer recently claimed they had reached peak oil output.
Coupled with the vast numbers of people in India and China who are entering the middle class, acquiring cars, and using energy, its not surprising that the price of gas is skyrocketing.
But the price of gas won't keep going up, becuase the above formula doesn't take into account producing your own oil from scratch. For example, one company is genetically designing bugs to eat waste and excrete oil. Yes, this is actually possible. read more here.
