Do Conservatives understand that oil isn't going down in price ever again?

What you're discussing is known as "Peak Oil Theory", and it's largely a bogus argument used by commodities speculators to pump the market. As the price of oil goes up market forces will come into play and greater conservation efforts and development of alternative energy resources will lead us to a sustainable energy future. Everything will work out once the market forces start to force everyones hand, it's just that right now there are a lot of idiots who have politicized this argument rather than looking at it logically.