The Memorial Day holiday weekend marked the start of vacation season for millions of American families. Many of the 37 million Americans who hit the road reached deeper into their pockets than in recent years to fill up their vehicles. Gasoline prices are rising and are already about 52 cents higher than they were this time last year, threatening to put a squeeze on summer vacation plans.

The rising cost of gasoline is an indication that the chickens have come home to roost. In recent years, a combination of low commodity prices, regulatory overload, a sluggish economy, and high inventories of crude oil resulted in an extended period of low gasoline prices enjoyed by consumers. However, after years of slashed energy exploration budgets and fewer new production projects combined with an energy-hungry, rising, global middle class and not-in-my-backyard energy policies means that energy supplies are falling behind energy demand.