Hybrids, Biofuels and the Coming Energy Crisis

Just finished watching Robert McFarland, exNational Security Advisor, and James Woolsey, exCIA Director, on Rob Insana's Street Signs on CNBC. The two are leaders of a group of 45 current and past National Security officials that have been lobbying the President to curtail U.S. consumption of oil.

Both men essentially claim that the U.S. is playing with fire if the United States doesn't take fuel efficiency seriously. They pointed out that last year alone, China increased its foreign oil dependency by 35% over the previous year, and that such increases are possible into the future.

More important they noted that in the Middle East, Al Queda has publicly stated that it will target Persian Gulf production. Such a disruption, they say, will easily push oil well over $100.00 per barrel, and both believe when, not if, is the only question.

One of the most important solutions? Tax credits for hybrid cars, clean diesel and other biofuels. Currently, both noted that the President is pushing for a $4000.00 tax credit, and both stated that the credit should be tied to fuel efficiency, not just technology. Thus, hybrid cars that achieve the highest fuel efficiency would receive the greatest tax advantage, those with the lowest fuel efficiency would still qualify, just for less.

They also noted that all vehicles should be made flexible fuel vehicles, which would significantly increase their ethanol capabilities. Thus, vehicles could fill up with gasoline that is 85% ethanol, and this ethanol doesn't have to be just corn. Prairie grass and even various waste products could also be recycled into ethanol.

So make America stronger, buy a hybrid vehicle!