What is the theory of peak oil?

The definition of peak oil, depending on who you ask, is slightly different; some say it is the last point when our demand for fossil fuels is met by oil production, while others define it as the time when maximum global oil production is reached, and declines hereafter. Regardless of semantics, the theory of peak oil basically states that at our current, rapidly expanding rate of oil consumption, we will reach a point in time when oil production will no longer meet our needs. Those who believe in peak oil theory will state that, either we are approaching peak oil (in the next 10, 15, or 20 years), or we are already at the point of peak oil. After the point of peak oil, because supply is not meeting demand, there will be accelerated hikes in gas prices (and since most food and product manufacturing requires oil), there will be hyperinflation in the economy.