Pagoda, if it's any comfort lots of economics sounds sensible but turns out not to be true. For instance, thirty years ago a lot of economists believed the 'Prebisch Hypothesis', which was basically that commodity prices (stuff like oil) would decline steadily in real terms over time, in which case todays oil prices are a blip and an aberration. This is in contrast to the predictions of the Hotelling model of resource extraction (prices will rise at the real rate of interest), in which case todays oil prices are a blip and an aberration but you should still fret a bit.

And an undergrad degree from a place where they push you (not, say, from my undergrad institution), should give you the tools to make sense of whatever economics someone's trying to push you, if not to do the math yourself.

Alcohol costs money too

While I'm sure that a lot of theoretical economics doesn't turn out the way we think, the idea behind this seems pretty basic. Demand keeps going up, production has been staying the same, and in the long term we have a rapidly diminishing supply.

If gas prices ever come down again, it'll only be a temporary relief. There was a pretty scary article in Rolling Stone on this topic a couple weeks ago.