I'm not sure that is the context of that article you linked. I skimmed the article and it's an interview with Dr. Paul about fiat money, not peak oil.

Peak oil just implies that the days of cheap energy for the United States are dwindling. If you let the free market price an alternative then alternatives can be found much faster.

Government intervention will only compound the problems of peak energy which will drive energy costs higher and higher until everything falls apart from the excessive cost of the energy.

Having a free market just means that solutions can be arrived at much quicker and more affordably than with massive central planning and gubmint intervention.