[andy58-in-nh]

There are many factors at work here, but I don't think we'll get to that point ($3.00/gal.) on a national-average basis.

There are some signs that demand is starting to slacken, both here and abroad.
Hurricane threats in the Gulf (of Mexico) have eased (the late season threat is typically in the Atlantic).
Refinery capacity is the biggest problem (IMHO). We just don't have enough refineries, and no one wants one in their backyard -yet. We'll see what a year's worth of $2.00+ gasoline does to change people's minds.
ANWR needs to happen, along with Continental shelf exploration. Is there any political will from the Republicans? We'll see.
Market speculation is rampant now, but will likely calm along with demand in the fall.
As for industrial demand, wind power and solar energy are expensive and inefficient, and coal is not all that clean. Nuclear power is now getting a second look from people who used to dismiss it out of hand, but wince every time they fill up their SUV's. Hell, if the French can do it, why not us?

[stuartcr]

If we could get past the sugar people, ethanol would make a lot of sense also.

[OnRightOnLeftCoast]

Refinery capacity is the biggest problem (IMHO). We just don't have enough refineries, and no one wants one in their backyard -yet.

As I recall, the EPA has cleared the way for construction to start next year on a new $2.5 bil refinery in Arizona along I-8, in east Yuma County.