Peak oil in a nutshell: Plot on a graph the size/volume of all additional new oil fields production coming on line every year for any given oil-producing region. Result: a 'bell curve'. Peak oil is the top of the curve.

Thus, the 'peak' of maximum oil production for any given oil-producing region can be projected. Essentially, the peak is characterized by a 'production plateau' (such as the 89-90 million barrels per day of world oil production where we've been for the last six years or so).

The key piece of information from 'peak oil' theory is not that we are eventually going to run out of oil (that's obvious), but once you hit the peak, that's the end of CHEAP OIL. From that point on, every additional barrel of oil is going to cost more to produce than the one before it.

Based on all the data I read, I personally believe we are at a world peak in oil production right now.