@George - That depends on who you ask. Peak Oilers say that Saudia Arabia is in an all out effort detrimental to their long-term production. I remember Anwar, their biggest field, is taking in water. It's been a while since I followed peak oil directly though.
Also note that Russia may be the new swing producer---the one that picks up the slack and thereby sets the price. This is problematic for the recent US strategy of invading and buying since Russia can actually defend itself. Also note, that if SA falls, Iran is will take over as the top producer, hence their interest in the nuclear option. However, as far as I remember, Iraq actually has more reserves; they're just not developed, so they may end up being the top producer.
I think this is more likely to explain the future of the Middle East than the theory about terrorism. It's too bad that the general public is only presented with one side of the story, when the two stories are very much intertwined.
Unfortunately it may be too complex to grasp. While we're at the subject of movie recommendations, Syriana made a nice attempt at illustrating the interdependent dynamics between oil companies, government organizations, oil princes, religious leaders, and workers turned terrorists. Without a geopolitical background it is hard to follow that movie.
What we call "war on terrorism" could easily be called "resource wars" in a parallel universe. The reason, we have terrorism is that the resources are to be found in countries with a massive military disadvantage. If it wasn't, we'd have World War 3, just like we had World War 2 for the same reason. World War 3, then, would start when the powers that control the resources (US and Russia) would be perceived as too weak compared to the powers that want them.