What happens when oil does peak?

Peak oil is often referred to as “Hubberts Peak”, a geophysicist who observed that oil well production followed a bell curve. According to the mainstream, convention view, peak oil is set to occur around 2006-2008. When peak oil occurs, production will decline approximately 3% per year at a time where global demand is increasing at 3% per year. What will all this mean for you and me- the average folk? Which industries will suffer the most- and which will strengthen as the new situation takes hold?