Where did I put those rose-colored glasses?!

Here are some exerpts from Jane Bryant-Quinn's recent article in Newsweek. I think she does a pretty good job of telling it like it is:

The U.S. lives in an energy trap. We fell into it gladly, dug it deeper and sit fat and happy, with blinders on. We're fed daily meals of imported oil, from countries we pay in IOUs and think we can push around. But now we're starting to see the costs and risks of our dependency.
For years to come, we'll be in the hands of some of the most dysfunctional governments in the world. Oil prices will rise and economic growth will slow—not this year, but almost certainly a few years out. We'll be paying in both treasure and blood, as we fight and parley to keep ever-tighter supplies of world oil flowing our way.
About three years from now, the non-OPEC world will start pumping at slowly diminishing rates, says energy analyst Charles Maxwell of Weeden & Co. Most of the extra barrels needed to feed our economic growth will then have to come from OPEC nations—putting them in the driver's seat.
That puts the oil-dependent countries in a serious bind. We're all jockeying for control of oilfields, in a vast game that runs the risk of turning mean. China and Japan are running warships near disputed oil and natural-gas deposits in the East China Sea. China is doing deals in Sudan, Venezuela and Iran (our "bad guys"). Russia looks less friendly as we continue to invest in the oil countries around the Caspian Sea—Azerbaijan, Kazakhstan, Turkmenistan.
Nobody really knows how much oil there is. State-run companies don't disclose their true reserves. But clearly there's not enough to cover long supply disruptions, and that puts future economic development at increasing risk. "Terrorists have identified oil as the Achilles' heel of the West," says Gal Luft, head of the Institute for the Analysis of Global Security. The world market is losing maybe 1.5 million barrels a day to political sabotage. In February, the Saudis foiled an attack on one of their major oil installations. Had it succeeded, it could have been an "energy Pearl Harbor," Luft says.
What does all this add up to? A future oil market drastically rationed by price. Farmers, truckers and people on lower incomes who have to drive to work will be squeezed, especially if they also need oil to heat their homes. But heating with natural gas won't save you either, says oil investment banker Matthew Simmons; natural-gas supplies may grow even tighter and even higher priced.
Unfortunately, we're investing in war, not in crash projects to develop new energy sources. Maybe there's time to spare. But some events, like true civil war and collapse in Iraq, could change everything in a day.
We're running a faith-based energy policy—still addicted to oil. If something goes wrong, it will go wrong big.