Never did I expect that the price of oil would increase to $100+/bbl, but here we are right now at $106.40/bbl for April '08 light crude. However, I was correct in thinking that the world would soldier on despite the oil price. The U.S. economy is in or near recession not because of the price of oil, but because of the bursting of the housing bubble. There are no oil shortages. There is no crisis. The market is working just fine. It would be fine at $150/bbl. It would be fine at $200/bbl.
The price is forcing work on substitutes for oil. Within a decade, we could end up using electricity for most of our individual transportation needs. The technology is mature enough to make the switch and it wouldn't inconvenience anybody except in the rare situation. Maybe the price of oil would need to be higher in order to force the substitution, given that gasoline and diesel are strong products. Of course, oil is used for very many other things -- its use permeates our economy -- but I am sure that there are substitutes in most of those markets as well.