Part of my job is reading the various oil and natural gas price forecasts that consultants publish. Most of them think that the price of oil is going to continue an upward trajectory over the long run. Worldwide demand will not abate, particularly in countries where the price of gasoline is dirt cheap (Venezuela, Iran, Saudi Arabia, Kuwait). In oil producing countries, because demand is soaring (due to cheap gas), exports are on the decline. And new supply is not being found or tapped for various reasons, such as politics and the expense of drilling. A couple of recent forecasts I've seen are $83 and $100 per barrel. Oil prices are currently around $75 a barrel.

If these forecasters are right, be prepared to pay $4 a gallon. You are already used to paying $3, and I don't think that prices will decrease below $2.75-ish again.

This has influenced my decision not to get another car yet. I think the US government recently passed an increase (or there is an outstanding bill on Congress, can't recall which) in CAFE standards to 35 mpg by 2020. That's a long time to wait for a more fuel efficient car. Based on my low monthly driving mileage (800-1000 miles per month), I cannot justify the purchase of a hybrid vehicle at current gasoline prices, and most likely not at $4/gallon either. I'd like to wait and see how the situation unfolds before sinking a wad of cash into a new car.