CNN

FROM CNN's Jack Cafferty:

Experts predict the price of oil could soon hit $250 a barrel. Already, a barrel of crude is trading at almost $73 dollars - which is up from the lows of $30 a barrel only four months ago.

Prices are going up for lots of reasons; the big one is a new report that shows the world's proven crude reserves have fallen for the first time in 10 years. Demand for oil has gone up for the first time in 10 months; and as the global recession begins to wane, demand for energy is only expected to increase. Plus, it's the start of the summer driving season.

And, since oil is traded in dollars - a further decline in the value of the U.S. currency could also push oil prices higher. If oil prices keep going up, it's possible that could erase the glimmers of economic recovery we're starting to see.

Some analysts say they wouldn't be surprised if oil hits $80 or $90 a barrel soon; while the chairman of the Russian energy group Gazprom is repeating last year's estimates of $250 dollars barrel.

Meanwhile, rising oil prices mean rising gasoline prices. The national average price for a gallon of regular unleaded gasoline is now $2.63, according to AAA. Gas prices have increased for 44 days in a row now, with the average price jumping almost 30 percent a gallon since the end of April.

Here’s my question to you: How will your life change if oil reaches $250 a barrel?

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(PHOTO CREDIT: GETTY IMAGES)

FROM CNN's Jack Cafferty:

If you feel like you have some change left after filling up at the pump these days, it's not your imagination: Gas prices have now fallen for 26 days in a row.

AAA puts the national average at just below $3.80 a gallon. Gas prices have dropped more than 7% since hitting a record high of $4.12 last month. However prices are still a dollar more than they were a year ago. The almost month-long drop in gas prices has come as oil has also fallen from a record high of $147 a barrel.

This is good news for the average consumer. A new Gallup poll suggests that Americans have become more optimistic about gas prices as they continue to drop.

Last month, almost 90% of those surveyed said gas prices would be even higher by the end of the year. But now that percentage has dropped by more than half to 40% - an especially large change in opinion for just a month's time. Also, only 16% of Americans think gas prices will increase by "a lot" by the end of the year, compared to 52% who felt that way last month.

Gallup has also found that Americans' views about the economy haven't been quite as gloomy lately. 73% of Americans rate the current conditions as "fair" or "poor”. That's still a lot of people, but it's down from 83% who felt that way last month.

Here’s my question to you: Have 26 days in a row of falling gas prices improved your outlook?

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Oil burns at a refinery in Basra, Iraq. (PHOTO CREDIT: GETTY IMAGES)

FROM CNN's Jack Cafferty:

While you're paying $4 a gallon for gasoline, think about this.

Iraq could end up with an $80 billion surplus thanks to its oil exports. $80 billion. Remember how we were told Iraq's oil money would pay for the war? We've spent more than $700 billion of our money including almost $50 billion to rebuild Iraq, and we haven't seen a dime of their oil money for our efforts.

U.S. auditors report that Baghdad had a $29 billion budget surplus from 2005 to 2007, and with the price of crude oil just about doubling in the last year, the surplus for 2008 is expected to hit as much as $50 billion.

Meanwhile, the U.S. continues to pour money into Iraq for reconstruction, repairs to their oil infrastructure, electricity, water and security. How much has Iraq spent? In the last 3 years, they've put less than $4 billion towards similar services.

Senator Carl Levin says it's inexcusable for U.S. taxpayers to foot the bill for projects the Iraqis could pay for themselves. Duh.

Of course Congress continues to approve one spending bill after another for Bush's war despite the Democrats' promise to end the war's funding in 2006.

Here's the bureaucratic explanation for the screwing the American taxpayer is getting. The Treasury Department says the U.S. is working with Iraqis to fix the issue and they believe "progress is being made". What a joke. Progress is Iraq writes the United States a check.

Here’s my question to you: What should be done about Iraq's potential $80 billion oil surplus?

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Regular unleaded gasoline remains at its record high price of $4.12 a gallon, according to AAA.

FROM CNN's Jack Cafferty:

This country's energy crisis is "more important and threatening to America's future than terrorism"

So says Republican Congressman John Peterson. He's one of the lawmakers heading up the bipartisan "energy working group" in the House, which is trying to bring back stalled energy legislation.

Peterson insists that energy legislation should be the top priority for Congress, even though there's no sense of urgency in Washington about energy prices. He says that leaders will have a hard time refusing to address this issue adding "This is the issue of the year. This is the issue of the decade."

The Pennsylvania Congressman says the energy crisis is destroying the middle class that made this country strong, and even calls for a "war on energy” – much like our war on terror.

He says that expanding offshore drilling is the most important thing Congress can do to boost domestic supply, something many Democrats have opposed. But Peterson also calls for conservation, tax breaks and tax credits for people to get rid of their old cars, and more funding for renewable energy sources.

There's also a bipartisan group working in the Senate on an energy bill. It's believed eventual compromises would include new domestic drilling to satisfy Republicans, while promoting conservation and alternative energy sources to make Democrats happy.

Here’s my question to you: Is the energy crisis a bigger threat to the U.S. than terrorism?

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Iran's Shahab-3 missile being launched from an undisclosed location on Wednesday.(PHOTO CREDIT: AP PHOTO)

FROM CNN's Jack Cafferty:

Iran is holding a fistful of aces.

Consider this: The Islamic Republic is the second-largest oil producing country in OPEC – with an output of 4 million barrels a day. And the head of OPEC warns that any military conflict involving Iran could result in an "unlimited" increase in oil prices. You think today's record trading high of more than $147 a barrel was bad news? He says the other members of OPEC wouldn't be able to make up for the lost production, and prices could head through the roof. Some experts are predicting prices of $250 per barrel or higher.

Meanwhile, Iran continues to go along with its nuclear program. In an attempt to showcase some of its military might, the Iranians test-fired a long-range missile Wednesday and several shorter-range missiles Wednesday and Thursday. A top Iranian military official has threatened to close down the straits of Hormuz if Iran is attacked; more than 17 million barrels of oil flow through the strait every day.

In light of Iran's missile tests, the U.S. and Israel are flexing their muscles, too. Secretary of State Condoleezza Rice says the U.S. will "defend our interests and defend our allies." And Israel, whom Iranian President Mahmoud Ahmadinejad has vowed to destroy, is also chiming in. Defense Minister Ehud Barak says he favors sanctions and diplomatic pressure, but that Israel has proved in the past that it's not afraid to act if its security is at risk.

Here’s my question to you: What should be done about Iran, considering how much influence it has over the world’s oil supply?

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Iraqi flags flutter at a new oil refinery plant in the Shiite holy city of Najaf, central Iraq. Click the Play Button to see what jack and our viewers had to say. (PHOTO CREDIT: GETTY IMAGES)

FROM CNN's Jack Cafferty:

When it comes to the real reason for the Iraq war, we've pretty much heard it all: First it was WMD, then it was about the war on terror and removing Saddam Hussein, then it was about spreading democracy. But it was never about the oil.

Now, as Bill Moyers reported on PBS: "...one by one, these concocted rationales went up in smoke, fire and ashes. And now the bottom line turns out to be ... the bottom line. It is about oil."

More than 5 years after the start of the war, the U.S. has lost more than 4,100 troops, tens of thousands more are wounded for life, hundreds of thousands of Iraqis are dead, millions more are displaced, and the U-S taxpayer is stuck with a bill that could top trillions of dollars. And, what about the oil? Well, it hit a new record high today of more than $143 a barrel. Gas prices are up almost 38% from a year ago.

The New York Times reports that the Bush administration played a key role in drawing up no-bid contracts between the Iraqi government and five major Western oil companies to develop some of the largest fields in Iraq. Critics accuse the administration of making sure Western companies get this access in the country that holds the third-largest oil reserves in the world. For example, Russian companies with experience in Iraq were hoping for contracts, but they're still waiting.

The White House denies steering the Iraqis toward any decisions. A State Department official says its advice was "not binding."

Here’s my question to you: Do you believe the Iraq war was about oil all along?

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FROM CNN's Jack Cafferty:

Can you tell it's an election year? After a moratorium against drilling for oil in Alaska and off the coast of the U.S. for the last 27 years, suddenly the politicians are saying "to hell with the environment and the tourism industries in places like Florida… let's drill for oil now!"

Funny how gas hits four dollars and politicians throw their principles out the window. President Bush and John McCain both favor drilling as though it will take the place of a coherent energy policy. If exploration started today, some experts predict it could take ten years before you could pump the oil from the coastal areas and Alaska into your car as gasoline.

The economic implications for states like Florida – that rely heavily on tourism – are immense. In the event of a leak or a spill, the entire coastline could be ruined. Remember the Exxon Valdez.

The political implications for John McCain's chances of being the next president are also large. If coastal drilling happens in California, McCain can forget about it. Californians are among the most environmentally conscious folks in the country and are staunchly opposed to drilling for oil off their coast.

Florida could react the same way. Clean beaches are vital to the state's economy. But suddenly Florida's governor, Charlie Crist, who some think is salivating at the chance to be McCain's V.P., is all in favor. Until yesterday he was opposed.

Critics of the idea point out that the oil companies currently have 68 million acres under offshore lease that are not being developed. But critics be damned… full speed ahead. It's an election year and the voters are mad about gas prices.

Here’s my question to you: Is drilling for oil in Alaska and off the coast the answer to high gas prices?

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Gas prices soar over $4.00 a gallon in NY.

FROM CNN's Jack Cafferty:

Here we go again. Every time oil and/or gasoline prices get high enough, someone in the government announces an investigation. The idea is to try to convince the poor soul forking over four bucks a gallon for gas that his government gives a damn. This time it's the Commodities Futures Trading Commission.

We've been here before. Investigators this time say they're looking at potential abuses in the way crude oil is bought, shipped stored and traded nationwide. Usually they don't publicize this kind of stuff, but say they are doing so now "because of today's unprecedented market conditions." That and senators and congressmen are catching hell from their constituents who want an explanation of why oil prices are up 42% since last December.

And, heading into the peak summer travel season, gasoline prices are up an average of 76 cents over where they were a year ago.

When you read the fine print, you discover experts say this investigation – like all the others before it – will likely have a limited impact on oil prices, which have been going up for many reasons, including growing demand from places like China and India, the falling value of the dollar, international tensions and low interest rates.

Meanwhile, a new Gallup Poll asks Americans what should be done to reduce gas prices. A majority of those surveyed, 53% favor price controls. 58% support draining oil from the strategic petroleum reserve, and 57% are for drilling in U.S. coastal and wilderness areas that are now off limits.

However, a majority of people say it's a bad idea to ration gas, bring back the 55 mph speed limit or – are you listening, John McCain – suspend the federal tax on gasoline for the summer. If it makes you feel any better, the highest gas prices in Europe are in Norway where motorists pay more than $9 a gallon.

Here’s my question to you: Do you think a government investigation of oil prices will lead to cheaper gasoline?

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(PHOTO CREDIT: AP PHOTO)

FROM CNN's Jack Cafferty:

Americans are being hit with a more expensive holiday weekend than in years past, with soaring costs for everything from gasoline to hamburger buns.

Gas prices, at a national average of $3.88 a gallon, have now risen for 17 straight days, according to AAA. The motorist group says that for the first time since 2002, Americans plan to drive less this Memorial Day weekend than they did the year before. It says people are traveling closer to home and taking fewer trips.

And, that poll was taken during the last week of April, when gas was at $3.50 a gallon. At least 7 states now average more than $4 a gallon. Another survey conducted this month found 23% of Americans have changed their travel plans for this weekend due to high gas prices, with 12% canceling their vacations all together.

Meanwhile, for those just planning to stay home and fire up the barbecue, get ready for sticker shock there, too. With food inflation at the highest in almost two decades, the cost of an average barbecue could cost families about 6 percent more than last year.

Prices are up for everything from hot dogs to soda, potato chips and hamburger buns. Beef prices have been high, and chicken and pork prices are expected to rise because of feed and fuel costs.

For many people, that means cutting corners, by doing things like buying store brands instead of name brands. Others say they find themselves questioning every food purchase – wondering if they really need the item.

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(PHOTO CREDIT: GETTY IMAGES)

FROM CNN's Jack Cafferty:

The day of reckoning may soon be upon us. Crude oil hit a record high of more than $133 a barrel today, after a government report that stockpiles of gas and oil have fallen unexpectedly.

But that's not the worst of it. Fears of oil shortages within 5 years actually pushed long-term oil futures to almost $140 a barrel yesterday. The Financial Times reports veteran traders say they've never seen such a jump, and that they believe more and more investors are betting that oil production will soon peak.

One influential investor says he thinks oil prices will hit $150 a barrel by the end of the year. And Goldman Sachs is predicting oil could top $200 a barrel within two years, which could mean gasoline at $7 or $8 a gallon.

All this comes as global demand for oil is increasing much faster than supply, especially in places like China, India, the Middle East and South America.

Crude oil prices have more than doubled just in the past year... something most Americans have felt at the pump, with a gallon of gas now costing $3.81 on average. According to AAA, the price of a gallon of regular unleaded gasoline hit a record high for the 14th day in a row. That has never happened before. What will we do when gas hits $7 a gallon?

Here’s my question to you: What should the U.S. be doing now to address possible oil shortages within five years?

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