Cycling on price is the history of the nat gas market.  Price spike, lots of exploration, price collapse, no exploration.  Unfortunately, starting to look like it's not just a matter of poking more holes in the ground this time.  There's just too many of us demanding too much energy.

The last cycle in the US on very cheap gas we had deregulated electricity production so anyone trying to rapidly exploit the shortage in electricity generation slammed together a nat gas turbine project to grab a quick profit.  I know folks that made hundreds of millions on projects that barely even ran.  By the time they got their plants up, the price spike was past and they could cover back the paper hedges and just take the profit.  

Without a PUC mandate for a rational balance of generation nor a mandated paying up front for more expensive coal or other generation (Dare I say Nuke??)  the market gives you solutions like this.  PUC's suck, but suck less than any other system in MHO (begging the pardon of Churchill). Suddenly windmills on the horizon may look awfully good to the NIMBYs.

There are some mitigating factors that will come into play.  First, fertilizer/ethylene production will move to remote gas locations.  US plastics production cannot compete using $11+ gas vs $0.75 in Saudi or Nigeria.  That will buy some time.  I read a number of producers are going back to waxed paper cartons to replace plastic containers as well.  I seem to remember getting a penny a piece to return empty re-fillabale soda bottles when I was 6ish.  Maybe we head back there as labor values drop off in the US.

I do agree with the fundamental thrust of your argument.  The era of cheap energy is rapidly drawing to a close.  But it will take a little longer than you think as there will be demand side destruction which always seems to be understated or ignored in these sorts of arguments.  Hence the Race to $50 oil rather than $100 this winter.