1: Gee, I wonder what caused the spike in oil prices between the 70's and 80's... normal market economic models of an equilibrium argue the market is efficiently producing when there are competing sellers. We all know the oil market is entirely competitive. It's not like there's some sort of Oil and Petroleum Export Commission controlling 2/3 of the world oil supply that has quarterly meetings on the amount of oil that is exported... an organization which people like Flint, myself, and most people on both the right and left dislike specifically due to their market-manipulating nature.
Note: This is an exception, not the norm. Generally, these types of organizations are stupid impossible to organize. The unity against Israel made a big effort to make that unity happen, however. Moreover, the actions of the US in drilling for new oil acts as a method of busting OPEC (the most effective method of busting a trust is to build a competing industry that can fill the supply a trust or monopoly is denying the market).
2: Your analysis ignores the existence of aggregate changes in supply and demand. Large-scale demographic shifts change what would be considered an "equilibrium price" by changing the ratio of supply and demand.
A good example of this... roses! Generally the same price year after year, with little change. With just one little exception. Every February, the price of roses jumps. Is it a deviation from the equilibrium? No. There's just, at this moment, a larger amount of people buying a larger amount of roses, changing what would be the equilibrium for that month.
In the same way with oil, such factors as the discovery of new oil, the growth of developing economies such as China and India, the tapping out of various oil wells, seasonal changes, increased insurance costs associated with transporting petroleum through at-risk regions, disruption of oil wells, the opening and closing of embargoes, and just higher overall individual use of energy create new equilibriums.
In short, it's just unfair to say the economic system fails because the price here isn't the same as it was in a time when only a ridiculously low fraction of even developed nations owned a car.