Soon We'll Be Longing For $4 Per Gallon Gasoline

Most Americans are waking up to understand that cheap gas prices are a thing of the past. No matter what we do, how we fuel our homes, cars and industry, the prices just won't go down anymore. It's the new reality that most of the world has been experiencing for decades.

As much as we hate to admit it, America has been on the gravy train for years when it comes to low gas and food prices. Our taxes subsidize farmers, and our food prices have been artificially low for a long time. Being the long, giant consumer of oil, much of the world supply came our way. Now China, India and other booming economies are finally living lives much like ours.

Yes, the United States should be energy independent, but that doesn't mean prices will go down. In fact, most alternative fuels cost more than consumers were willing to pay with cheap oil, and that's why we've never pursued it. Now that prices have gone up, they now seem more lucrative.

Europe has for decades paid two to five times more than the United States for gasoline. Their electricity is higher, too, because they are largely dependent on clean, but expensive, nuclear energy. Only giant oil producing countries can supply cheap gas to its citizens. Venezuela offers gas for cents on the dollar to its citizens. That's because the country is brimming with oil. The same goes for Saudi Arabia and other oil producers. And these aren't even the giant, booming economies.

India and China, with the vast majority of the world's population, are quickly gaining in economic prosperity. Citizens of those countries who just a few years ago lived without basic services now are making money, buying cars and living more like Americans than ever before. They are basically chasing the American dream like we are. Much of the world oil production is being diverted there, and not just to our shores anymore.

In the United States, our refining capacity is tapped out. New refineries are not being built because no one wants one in their back yard, they are incredibly expensive to build, and the government and environmental hurdles are difficult to leap.

All of us would love for gas prices to drop back to the low $2 per gallon range. Most of us would appreciate seeing $3 per gallon again. But if the experts are right, and they have been so far, we'll soon be longing for $4 per gallon.

About the only thing we can do about it is adjust our lifestyles. For most of us, that's going to be difficult.