Check out LifeAftertheOilCrash.net. They explain the global situation surrounding peak oil better than we could. Here’s an excerpt:

In practical and considerably oversimplified terms, this means that if 2005 was the year of global Peak Oil, worldwide oil production in the year 2030 will be the same as it was in 1980. However, the world’s population in 2030 will be both much larger (approximately twice) and much more industrialized (oil-dependent) than it was in 1980. Consequently, worldwide demand for oil will outpace worldwide production of oil by a significant margin. As a result, the price will skyrocket, oil dependant economies will crumble, and resource wars will explode.

There you have it. Production rates will decrease to equal that of 20 years ago, except the world’s population has doubled in the meantime. As demand significantly outweighs supply, the commoners (you and I) will be the first to get hit. Prices will rise so high that driving to work will no longer be cost effective. Running air conditioning in the South and heaters in the North will be luxuries for the rich. Cooking costs will increase. Somewhere, somehow, everyday people like you will have to find alternative methods for living. Cheaper, healthier, and more independent.

Visit their website for additional information.