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#1: The Post-Oil Era Begins

Electricity may be what fuels our future—electricity from renewables, nuclear, and even from burning biomass.

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Nine billion gallons of corn ethanol were produced in the United States in 2008, twice as much as in 2006. By the end of the year, though, dreams of a sustainable, domestically produced fuel that could help end our addiction to oil had deflated. The puncturing reasons came from all directions. Corn ethanol, aided by a generous subsidy from the federal government, has had the lead in alternative fuels, but recent studies reveal that it is much more costly, both economically and environmentally, than people had thought. Sharply rising grain prices underscored ethanol’s impact on household budgets and the global food supply. And then oil prices tumbled, making ethanol significantly less competitive in the energy marketplace.

Transportation fuel accounts for 28 percent of the country’s energy use. With oil reserves headed inexorably for depletion, shortages and more wild price swings (like last summer’s $147-a-barrel spike) very likely loom ahead. The ...

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