Duke,
You are such a friggin pessimist jeez. If we had more refining capacity gas would be cheaper, but that's besides the point. There are other variables you don't take into account because you do not work in the oilfield and so you don't pay enough attention. Here are a few of them that are making the price unstable:

1. Labor disruptions in Algeria
2. Militants in Nigeria disrupt oil production(one of the guys from our company was shot in the head on the way to work)
3. Canada is basically shut down right because of weather

I'm telling that you don't understand the way this market works; anything can make the price jump. Will we see $2/gal gas again? Maybe, it is very possible but I'm not sure. You shouldn't be putting out these doomsday scenarios when you don't understand the nature of the business. The peak oil theory is interesting and can be true in some ways but the problem with it is that we make new discoveries all the time. It doesn't take this into account.