$5 per gallon gasoline is on its way to the United States, according to some experts. Why? Because lots of people in the Middle Easy are pissed off at their crappy governments and are protesting/revolting against them. After the success of the Egypt protests, political unrest is exploding in Libya and may spread to many other oil-producing nations. Social chaos in those countries could quickly result in lower crude oil production and that could mean $5/gallon gas by summer 2011.That's a serious problem for a US economy that's just starting to get back on its feet!
Oil prices are already at their highest levels since 2008, mainly due to the violence that's erupting in Libya. Over 300 people have been killed there so far, mainly by government police forces. But the bigger threat is Iran, which is a huge OPEC nation who pumps out tons of crude. Its crazy leaders have already stirred things up in recent days by sending 2 naval ships through the Suez Canal for the first time since the 1979 revolution.
If the Iranians (or the Saudia Arabians) start their own major uprising things could quickly break bad for the US and even the global economy. When energy costs skyrocket, the prices of LOTS of things go up. That will hurt already weak consumer spending and could stifle the fragile economic recovery currently taking place in most developed nations. If things really get out of hand and oil prices get to $150+ per barrel (a definite possibility), economists say that the US and many other countries will rapidly be pushed back into a recession.
We think maybe it's time to start seriously developing true alternative energy sources... don't you??
Learn some mo': If Libyan unrest spreads, gas could reach $5
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