The flip-side of that point is reflected in how we use fossil fuels. A fall-off in oil production could be offset by increased energy efficiency. Data from the Department of Energy's Energy Information Administration provides common-sense confirmation, as econ prof Mark Perry shows at Enterprise Blog:
source: Enterprise Blog via EIA data
[T]he energy consumption required (measured in thousands of Btus) to produce a real dollar of output (Gross Domestic Product) fell to an all-time record low of 8.52 in 2008 (see chart above). Compared to 1970 when it took 18 Btus to produce a real dollar of GDP, today’s economy is more than twice as energy-efficient.Indeed, in 2008, America consumed about the same amount of energy as 2000, yet upped output by nearly $2 trillion (in 2000 dollars).
Whether or not oil supply declines in the short term, economics and technology ensure the "pie" isn't fixed.
(via Carpe Diem)