While it grieves me to say that the Guv is being too optimistic, the medium to long term prospects for oil prices are dire (or fantastic, if you're no fan of large-scale atmospheric combustion of hydrocarbons). The chances of Saudi coming out of this unscathed are vanishingly small, and even if it does the ratio of reserve discovery to extraction is down to around 1:4 and falling.
I expect to see oil at around $100/barrel by the end of the decade. There are alternative sources of energy for all forms of transportation, except aviation. Things will perforce change, and probably more rapidly than anyone really believes.
Some bedtime reading:
http://www.newyorker.com/FACT/?011022fa_FACT1 -- how vulnerable is the Saudi royal family
http://www.hubbertpeak.com/ -- the Hubbert Peak theory of oil production. Website looks more swivel-eyed than it actually is.
R