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As we discussed here, oil at these prices does not make for a good long-term investment, contrary to what alarmists will tell you. High oil prices cause a decrease in oil demand, and therefore a drop in the oil price, over time. Yes, demand is fairly sticky in the short-run, as it takes time for energy efficiencies to be implemented and for changes to occur in the make-up of the economy's fixed assets (e.g. a phasing out of SUVs in favour of smaller vehicles).

If this hypothesis is correct, over the next several years we should see a gradual decline in consumption take hold. This process has in fact already started. For example, June 2008 numbers for US motor vehicle miles driven were recently released, and 12-month rolling totals ending in June of every year since 1983 are depicted below: