Expensive Oil

I know that America has an incredible history of solving problems using technology and innovation. I have an idea that 20 yrs from now (if the Lord hasn't come) we will all be driving some sort of car that runs on hydrogen that we get from our garden hose. But the question I have been pondering is this; will we be able to limp along and stay strong as an economy if gasoline goes to $7-8 per gallon in the not distant future. Because $200/barrel equates to pretty expensive gasoline. See the headline from OPEC below;


Opec says oil could hit $200
By Carola Hoyos in London
Published: April 28 2008 13:56 Last updated: April 28 2008 20:03
Opec’s president on Monday warned oil prices could hit $200 a barrel and there would be little the cartel could do to help.
The comments made by Chakib Khelil, Algeria’s energy minister, came as oil prices hit a historic peak close to $120 a barrel, putting further pressure on global economies.