Your story is very telling here. I believe the larger social context must be taken into account. What is that context?

This (American) civilization is in decline. Lately, we've had the indignity of Mexican soldiers moving into Texas to help us with our relief efforts vis-a-vis displaced persons from New Orleans and the Gulf coast. All over the world, other countries have been offering up help for our "refugee" problem. This is a turning point for the US. What should have been obvious before (we are becoming, in parts, a third-world country) is now obvious to everyone else all over the world.

Who really thinks that we can solve our Energy Problems given our manifest failures in Iraq, New Orleans and the growing huge income inequality in this country? Even today, the 4th Circuit Federal Court judge ruled that holding Jose Padilla was just fine, no Habeas Corpus, no right to representation, no Bill of Rights. Everyone all over the world sees how things are going in the US, its all pretty obvious to them. This all seems like a no-brainer to me. Since US consumption drives a great deal of the world's economy, it seems obvious to everyone everywhere that we're all (globally) looking at a world of hurt.

Given the "energy bill", the gross stupidity and greed of our rulers and our current supply problems, how exactly is Adam Smith's "invisible hand" going to get us out of this pile of shit?
I definitely concur, Dave.  The key point you made revolves around the "greed of our rulers." Our form of government in practice is actually fascist in practice and is on a quick decent towards a tyrannical dictatorship.  We are just told repeatedly that we have democracy and freedom, but all anyone has to do is open their eyes and test what they hear from our leaders against what is actually taking place.

The sooner we realize that our rulers' "only creed is greed" then we will be much closer to understanding why peak oil is even something to discuss.

As far as technology...conservation technologies that would enable a barrel of oil to go a lot farther has been in existence for many years, but have been suppressed because of greed.  There are many examples of individual inventors who have developed engines that would get close to 100 mpg, but their ideas were suppressed.

Other technologies that would replace some (or all in some cases) oil usage have been around as well, but have also been suppressed.  Several labs worldwide have developed motionless electromagnetic generators (MEGs), based on the research of the late Nikola Tesla.  (see Kawai Motor and http://jnaudin.free.fr/meg/meg.htm).

Interestingly, Chrysler Motors was selling Ethanol powered cars to Australia as early as the 1930s (as reported in American Free Press, August 29, 2005)  Actually the entire issue of AFP was devoted mainly to energy matters; you may be able to find these articles on www.americanfreepress.net).

Sadly, as you mentioned in your post, our society is being deconstructed before our very eyes.  And I believe peak oil may be on the backburner before long.  After the next disaster, martial law will be declared nationwide and our constitution (which means nothing to our current leaders) will be suspended indefinitely...