Are you ready for $12 a gallon gas?

Like many thousands of people across the USA, I watch MSNBC for a few minutes before heading out the door to work in the morning. This morning was no different as I turned on the TV for a few headlines of today's economic news. There was a energy fund manager that was predicting that oil will reach $300-$400 a barrel shortly. He said that those prices will come much faster if even a mild hurricane would hit the Gulf of Mexico this hurricane season (note hurricane season just began). The price of gasoline at the pumps could hit $12 to $15 a gallon. He also predicted that there would be surge of new technology to find alternate ways of energy production.

I talked with my Aunt in Australia over the weekend and asked her what they were paying for gasoline. She said they pay about $1.25 a liter which works out to about $5.00 a gallon. They have a huge SUV and might be thinking about trading it in.

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