How can people cut back on oil use? Are they going to stop driving to work?

With the severe recession you are predicting, won’t there be fewer people driving to work?

Leaving that aside, people who are hurt by high oil and gas prices will find ways to reduce consumption. Some will trade in existing vehicles for more fuel-efficient cars. Others will reduce trips. You’ll see more people looking for car pools.

Most analysts attribute this spike in prices to an increase in demand as opposed to supply-driven spikes of the past.

By themselves, high prices serve to reduce demand. Throw in a recession and demand can be reduced pretty significantly.