He implies that peak oil advocates say that we're simply "running out of oil" and we don't understand that the oil we are going to be mining now (which we have a lot of) is going to be costlier. This is such a stupid, intentional misrepresentation of the position of many advocates of the peak oil concept it is simply infuriating.

Peak Oil has never been about supply (although quality of supply is a factor), it has always been about flow rate. Peak oil is about whether or not we can maintain the current, expected level of oil production at current costs and if not, what the ramifications for that are.

More expensive oil means that we're spending more of our GDP on energy which means a lower quality of life across the board. Someone has to suffer, likely a lot of people have to make major sacrifices. At $125 a barrel, we're spending 1/4 of our GDP on energy. If this Brazilian oil that he's talking about is that expensive or approaching that level of expense, is that something that we can maintain with our present economy? I don't think it's very likely and as a result many dependent sectors of the economy will suffer - like food production and manufacturing.