This forces families to relocate. They often would have to move from a remote suburb to some apartment that typically would be closer to work.

The problem with statements like this is every time it may be true it could also be false
thus its a statistical thing. On average I'd have to think that distance is not and overriding factor. In the US most families have both spouses working and generally their jobs may not be nearby so close for one may be farther for another. The point is we really don't know and the chances are its a wash to many other factors influence where people live.

My bet on the next industry to generate massive job losses is the automotive industry. There is a downward spiral involving fewer VMT, lack of credit and car sales. Recent news suggest that Detroit is already traveling this path.

I thought so also but when I looked I found that VMT for the rust belt states has been flat for years. Even Detroit has chanced little despite the long economic slowdown.

I'm not finding the links off hand its getting late here.

But for example here is one.

http://www.brookings.edu/reports/2008/~/media/Files/rc/reports/2008/06_m...

No huge changes between growing and stagnant cities.

The link I gave for St. Louis above has similar stats to Detroit.

Here is one for the rust belt states.

http://www.michigantrafficcrashfacts.org/doc/2005/10yr_15.pdf

On page one you can see that VMT for all these states has increased slowly despite the deteriorating economic conditions.

VMT does not grow much if at all but whats important is it also does not suffer a steep decline despite the slowing economy.

Another good site on VMT.

http://www.portlandonline.com/TRANSPORTATION/index.cfm?&a=90249&c=39561

Bottom line is that even severe economic decline seems to result in slow growth to flat VMT !

This is important since its what a lot of people believe will result in moderate fuel prices.
Historically when we enter a recession VMT flattens and is highly correlated with the housing industry decline. Since we had a monster bubble and unprecedented decline in housing its small wonder that we have seen not just the traditional flattening but a decline.

Thats it the party is over all historical data even for regions that by any standard have depression level economies indicate that VMT will effectively remain flat. This means that once oil supplies have depleted to balance remaining demand we probably will see gasoline prices increase.

We probably have not hit the point yet where gasoline prices will act as a significant curb on demand. Economic factors alone will not shift the demand curve down to create a excess.

Everything I have found indicates we will be going into a Recession and then Depression with ever spiraling gasoline prices.

And finally a lot of people are expecting that OPEC I question this assumption.
Given that depletion marches on and the we are ever closer or past world peak I suspect this time around small cuts will be capable of putting a floor under prices. Given all the economic/VMT data I've looked at.
For peak oil it looks like the crash of the housing industry is a Indian summer as another poster on this thread put it. Its a short respite before we get back on the high energy cost economic stagnation treadmill.
I hope you enjoyed a fall drive.