that peak oil has already occurred and that economic "recovery" is physically impossible."

That's the big question.If indeed oil has reached it's peak and economy recovers then it will hurt again and bring the econmy to a halt but what kind of help is then available?That's my greatest concern for the future.

Or will the energy price stear the market on ups and downs because if econmy falls back price of oil also will come down because of demand.

Best scenario is the upcoming for alternaties in pace with rising oil .If people can bring their costprice for heating ,fuel etc down then they left more over in the pocket for other things.Solars up here and other countries around in Europe are promotong solar systems on roof tops.People who built new houses these days are more focused on how they will heat their houses ,using better islation systems etc..The latest jump in oil price showed that the cost of energy took a big chunk out of the monthly salary.So if new systems can help by reducing that cost then if oil runs up people can bear the rising cost otherwise it will be hard to recover.Alternative systems can also create new jobs too.