Demand was (and to some extent still is) exploding (see India, China, SUV)

In fact, some of the fastest increases are with the oil producers themselves.

It's an interesting spiral.

Oil prices go up.

Producers get rich.

Producers' energy consumption increases as they spend their wealth for consumption and for development.

They export less.

Prices go up more.

...and so on...

"The future is already here -- it's just not very evenly distributed" William Gibson