Pump prices have hit a second year high at $3.32 a gallon.

The price of a gallon of gas, which according to a recent New York Times/CBS News poll caused Americans most concern when it came to the economy, has risen five cents since March 21.

Higher prices at the pump are due to the rising cost of crude oil and ethanol, according to the Lundberg Survey quoted on CNNMoney.

“If you think the price of gas is bad, think for a moment what the picture will look like twenty years from now,” says Peak Oil expert Byron King.

“By 2025, US daily oil output will be a fraction of its current level (probably down to about 2-3 million barrels per day, down from 5 million barrels per day), even with an aggressive program of drilling offshore and in Alaska — which is not happening, in any case.

“And by 2025 the rest of the oil-producing world will simply lack the product to export. This will be due to reasons of depletion on a global scale, and fast-growing internal demand in oil-producing nations. Gasoline consumption in places as diverse as Russia, Iran, Venezuela and Saudi Arabia is just soaring, so there is less net oil available for export.”

ETF expert Mike Burnick is bullish on the price of oil’s poorer cousin natural gas.
“Natural gas is way undervalued crude oil. With easy-to-trade ETFs, it’s now possible to effortlessly go long natural gas (UNG) while shorting crude oil (USO) without ever trading a single futures contract.

“In such a trade, it doesn’t really matter where the overall market goes. As long as the spread narrows between natural gas and oil, you’ll make money.”