This may sound ridiculous at this moment but we may need to face it sometime in the future , so what kind of alternative energy sources that we can tap into before we run out of gasoline? Do you think the oil companies or some other major corporations should really invest in such energy development since this is essential for the survival of our civilization. Well, I have your answer. Gerbil power works good.

Ok, so for now the world market on oil is skyrocketing, right? Probably in part due to the fact (to name a few things) that the average car consumes more gas than it did 20 years ago (24mpg now instead of 26mpg in 1987), the fact that the booming economy promoted high spending on big SUV's and other gas guzzlers in the past years, the fact that as our cites get larger commuting mileage and time increases, and a result of the US having more toys consuming excess energy than we know what to do with (to name a few things). Well what is going to happen when all the automakers start coming out with 70-100 mpg cars and other industries begin to promote higher energy efficiency and/or alternative energy sources (and build new nuclear reactors)? Isn't that going to dwindle the demand for oil by more than half? Shouldn't that be reflected by a drop in oil prices? If so, would not selling the oil companies short when we see the 200 day moving average price peak be a smart bet, or perhaps investing in companies that profit directly from oil prices dropping (like power and/or natural gas)? We should try and think about the effects these high mpg cars and other energy saving applications will have on industry and invest in what makes sense. Who spends the most on fuel? When the price eventually drops they will be making all that much more profit since we know they would never give any price breaks. There has got to be money to be made here. Perhaps looking at what made money in the early 80's after fuel hit its last peak cycle and dropped in price. Any ideas on where the most money would be made from oil dropping and energy usage becoming more efficient. Do you know what I found? Aside from high demand in the US, the increase in oil prices results from the rapid growth in the Chinese and Indian economies. There are millions (probably hundreds of millions) of people in those countries who are becoming more affluent, consuming more goods in general and are now thinking about going out and buying cars. Even if Americans can significantly reduce their fuel expenditures (and lets face it our track record in this area isn't great) there are millions of people who aspire to an American standard of living and will need oil to provide it. Another consideration is 'peak oil'. There's only so much oil underground, society has used up a substantial amount of the easily available oil, which means that over time it will become harder (and more expensive) to find enough oil to feed the world's needs. Also a lot of the world's oil is located in politically unstable areas– betting on peace in the middle east is a dicey proposition. Frankly I'm making precisely the opposite bet from you. As a general note if you still want to bet against oil, you might consider not buying it directly, but instead investing in a company that will benefit from reduced fuel costs (Southwest Airlines for example) or short a company that benefits from high oil prices (ie just about any oil company. ) Frankly though I really do not recommend betting against high fuel prices.

I understand the exhaust gas will be water. Surely this is good for pollution? We will not then have concerns over CO2 emmissions and thereby taxes can be reduced to benefit the working man. This would mean that fossil fuels can then be reserved for and better utilised by those industries that cannot do without them, in the medium to long term. This should ease demand and there the price should fall or stabilise. Am I being too logical. Well, I have your answer right here. Because the Oil companies have huge lobbying power and the Govt gets masses of taxes from oil companies. . Most of the share index is made up of oil companies, which is why the FT index is rising. . So there is little incentive. . Also the hydrogen itself has to be made, and there is cost and pollution in that. . But eventually it will have to come and indeed will, but we have not reached the critical tipping point yet.