People are actually speculating gas will go as high as $12/ gallon. Great.
The prices that we’re paying at the pump today are, I think, going to be ‘the good old days,’ because others who watch this very closely forecast that we’re going to be hitting $12 and $15 per gallon,” Hirsch said. “And then, after that, when oil – world oil production goes into decline, we’re going to talk about rationing.
That's fun. ugh.
On a somewhat related note, I'm halfway through a GREAT book - Oil on the Brain: Adventures from the Pump to the Pipeline (full review to follow when I finish). This book has a ton of interesting facts about gas production and is defintiely worht the read. Two quick things I've learned thus far: (1) the increase in gas prices is really a demand driven increase; and (2) historically, the demand for gasoline has been inelastic. It'll be interesting to see how far the price has to go to change that.
Really not looking forward to finding out.