What will happen, when the oil is gone? Options

[GhostofTHECHICKE...]

Read a book recently that showed evidence of how the oil production has just reached its peak (or will very soon) around the world. Which means that we have pretty much gotten half of all the oil around the planet (and also the Easiest half to get out of the ground economically), which estimates show could be used up in as little as 10 years at current growth of demand. Oil and gas production already peaked in north america back around the 70's. Combine that with the fact that 60% of all Oil left is in arab countries (and a comparable amount of the natural gas)... and i guess my question is:

What does everyone think will happen when the oil supplies run out (or at least start to get so low that we can't viably use it as we do now)? Our entire economy is based off of it... from fertilizers made from natural gas (which enable our massive production of food, aka corn that would be used to make ethanol), to fleets of trucks that supply: walmart, target, ups, schools busses, etc. Not to mention cars.

Will the economy revert back to the 1900s of horse and buggy?

Will it basically be armageddon from all the countries fighting for the last supplies of oil along with deseases etc brought on by the inability to fight them w/o oil.

Will we still have most comodities just a big hardship from not having the transportation, and or alternative fuels to make up for the loss (aka nuclear, wind, water, solar)

or will we be saved by things that appear to be pipe dreams currently (like hydrogen fuel cells that would either require oil to produce OR nuclear energy which we dont have much of)?

or do you not see any problem at all for what ever reason that you should elaborate on?

[Seeker]

the gov might finally quit whacking everyone who invents free energy devices