In case you missed it, oil came close to $100 a barrel today. We've had a nice warm autumn here on the east coast, so oil prices have been fairly contained, however at $95+ you can be certain that downstream costs are going to be pretty darn huge, especially given that the dollar is devaluing so quickly. Heating oil is already scraping against $3.00 a gallon, and gas is not far behind.

In terms of preparedness, this might not be a bad time to ponder how much fuel you need and what you might need to NOT get in order to ensure a maintainable level of backup fuels. In storms, in emergencies, fuel is always a super important resource, and while storage and rotation is challenging, it's necessary. If you don't have a household budget worked out already, this would be a great time to work one out, because unless you don't drive and don't pay for your own heat, this energy cost increase WILL affect you, and it's not going to get any cheaper anymore.

So, find the money. For example, I know I cut out the purchase of a nice new gun ($1,200) I had wanted to get this hunting season because the vehicle fuel budget had to come from somewhere.
We also were super-aggressive in wood collection all year long, and we have a LOT of wood ready to burn - and the oil burner is switched OFF unless we're out of the home for two or more days. We're also burning wood like we don't have any left and piling on the blankets at night. Yes, it's 55 degrees in the house in the winter at night. We warm it to 72-74 during the day. My oil bill for all of 2006 was $200, and that was due to some heavy travel and our house sitter kept the house far too warm. I expect my oil bill for this year to be less than $100 if we manage things well.