I predict that oil price increases (and shortages) will force the economy into a long recession beginning in 2010. I’ll even go out on a limb and predict that the recession will make the next president a one-term president as disatisfaction with the economy will force his/her ouster in 2012.
Republicans should hammer Democrats about energy whenever they can. If you remember VP Cheney developed an energy bill in 2002 that, if passed, would have opened up more oil to domestic drilling. Most of that oil would be coming online at about the time that the recession hits. Democrats (and a few RINOs, defeated that bill. Those politicians must be held accountable for their actions. If the Republicans can muster the nerve to blame the energy problems on the Dems & environmentalists then they may get huge electoral victories when the recession hits.
The oil industry report a week ago said that the oil industry will not be able to keep up with demand in the next two decades. They can drill all they want, and they are not running out of oil. Production will not meet demand.