should just add a couple more things to this.
If you don't want the price to fluctuate every time a two-bit dictator decides to try to show that he means something (read Iran, Venezuela, or Saudi Arabia), we should start tapping the vast oil reserves we have in the west plains, the northern Alaskan Tundra, in the Gulf of Mexico, or off the West Coast. Its all there and easy to get at, but policy makers have decided (whether to appease their communist allies in Greenpeace, or simply because they LIKE the two-bit dictators) that all that oil is off limits. You want to know how bad it's gotten in recent years? Several Offshore platforms in the Gulf were damaged by the Hurricanes that hit last year, 11 and 12 months later, they still are not operational. Why? Because the Government won't issue the permits to repair them.
The second item is that we could start pumping all the oil we want, unless we build more refineries, all that oil is useless. But again, the government has decided that Oil is evil and we shouldn't be using it. Many existing refineries are coming up on 30 years old. After that the EPA (as well they should) will start closing them down. But with no new permits being issued to build more, expect gasoline prices to simply sky-rocket. Remember last September when the country saw gas spike up to $4.50 a gallon? That was because Hurricane Ike went right over the Oil refining facilities in Pasadena, Texas. To maintain the current supply of gasoline that we have, EVERY refinery in the US has to operate at 90% capacity. Take more than one or two offline for any length of time, and $4-5 dollar gasoline will be here before you know it.