Americans need look no farther than their local gas stations to see the dramatic change in oil prices over the last 5 years. If, in fact, peak oil occurs in the next decade or two, and demand continues to rise, we should expect oil and gasoline prices to continue to rise.

Beyond just the cost of running our cars, "fear is growing among economists and policy makers that, in today's growth-dependant, energy-intensive global economy, oil price volatility itself may eventually pose more risk to prosperity and stability and simple survival than terrorism or even war." (8).

It is important to keep discussions about gasoline prices in perspective. When the average gasoline price crossed $3 a gallon, some called in a new all-time high. Yet, as Washington Post columnist, George Will noted, "In real (inflation-adjusted) rather than nominal dollars, $3.07 is less than gasoline cost in 1981."

Next:
Geopolitical Concerns