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Rising gas prices will not cause an economic depression, but they will change the behavior of consumers. Expect the SUV and full-size truck market to change dramatically over the next few quarters as gas prices rise. Political discussion will turn to conservation, environmentalism and the impact of these issues on the economy.

One key issue will be the impact of environmental policies on the US economy. Since the 1970s, environmentalists and political activists have worked diligently to stop the construction of petroleum refining facilities. As demand for petroleum has risen over the last three decades, a lack of refining capacity has caused artificial shortages in petroleum at times - and artificially high price increases for consumers.

Another key issue discussed will be the need to stabilize our relationships with oil exporting nations, a majority of which are located in the Middle East. This returns the discussion to nation building and peace missions which have been a hallmark of Democratic and Republican administration policies since the 1970s.

Americans will not face a depression, but may face a recession in the US economy which may linger for a very long time. Regardless of environmental concerns, petroleum is central to the functioning of the US economy and any meaningful change in this reality will probably not occur in the next twenty-five years. Americans will have to decide if their environmental concerns will warrant dramatic changes to our way of life - and our standard of living.

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