20% right, 80% wrong.

Thanks for the insightful comments Robert.  Maybe you would want to expand a little on it? 

In my opinion it really is all supply and demand and I do believe in peak oil. There is a huge increase in demand in the China, India, etc. area and this is not going to ease. It will get worse and we need to be ready for it. Why the car companies are not just pumping out hybrids and electrics is beyond me.

This is the reason why GM and Ford are in the predicament they are.  IMO, they deserve it.  I think one of them may not make it through this.  Most likely, it will be Ford.  Toyota will probably have the hybrid technology on all models in the next couple of years.  They are way ahead of the curve.  The germans are pushing out the most efficient diesel engines this year and next that pollute significantly less are get much better fuel efficiency. 

Peak oil is real.  In the last 5 years, oil production has increased by less than 3% per year over the past 10 years.  However, demand growth has exceeded supply growth by at least 50 basis points in each of those years.  Demand is definitely the biggest driver in the spike in oil prices.