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Pickens would like renewable energy sources, wind power chief among them, to run electric power generation plants currently run by natural gas/coal, and use that natural gas to fuel natural gas vehicles.
Economist Glen Langan told BloggingStocks Thursday the PickensPlan is commendable for a number of reasons (it would lower the trade deficit, create domestic jobs, and decrease greenhouse gas emissions), but investors and readers should not view it as a panacea for the nation's transportation energy bill. "It could be a part of the solution, but it won't address the entire imported oil problem," Langan said.
Another oil saver: better engines
What's another key to reducing both imported oil and U.S.-produced oil consumption? Something that the U.S. auto sector has under-emphasized for more than a decade: technology-driven increases in car/vehicle efficiency, Langan said.
Langan said vehicle weight reduction, transmission/drive train improvements, enhanced aerodynamics, and the biggest factor -- increased engine efficiency -- "have the potential to reduce oil imports by almost as much as the Pickens Plan, and the changes won't take 10 years to see the results."
Further, many of the mpg-enchancing technologies already exist, Langan notes; he suggested an additional federal tax credit for automakers to help them incorporate the changes sooner.
"The fleet [all vehicles driven in the U.S.] should average 25-27 miles per gallon right now. Currently we're at about 20 miles per gallon. With appropriate federal tax credits we could be at 30-32 miles per gallon in five or seven years," Langan said.
A 'drive by wire' car
Further, Langan said the chance for large gains in mpg exists in 'drive by wire' technology -- basically replacing hydraulics, gears, and pumps in cars/vehicles with more-efficient electric motors. Hydraulics, belts, gears, and pumps divert fuel power from the engine and lower gas mileage; run those systems on more-efficient electric motors and gasoline mileage will increase substantially.
Hence, Langan views the PickensPlan as part of the transportation energy solution: gasoline/diesel engine efficiency increases will reduce oil consumption quicker, while Pickens' natural gas vehicles will knock-out still another portion of oil use. The long-term goal? "The electric car remains a good choice to displace the internal combustion engine, but affordable, practical electric cars are still at least a decade away, given present battery technology," Langan said.
Oil Analysis: As economist Langan noted, the PickensPlan has merit, but it should be viewed as one piece of the oil consumption reduction puzzle. Numerous 'points for oil savings' exist in the current internal combustion engine model. The above programs, and other policy changes, have the potential to move the nation's oil bill in the right direction: down.
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Reader Comments (Page 1 of 1)
7-24-2008 @ 4:00PM
David said...
You do realize that small cars with small engines are already on the market today right? Liberals would love to force us to live and be like socialist Europe. Government control over our lives, how we drive, what we drive, where we go, where we live, how we live, what we eat, where we get our food, etc., etc. Neurotic control freaks.
7-24-2008 @ 4:01PM
william lindblad said...
One thing that "Daniel" Boone Pickens is showing is leadership. Pickens is a patriot and should be supported. If he were running for office he would have my vote.
7-24-2008 @ 4:30PM
Philip Block said...
One thing Pickens is missing is the Fuel Cell. All he knows is what he has been doing (oil) and lacks the knowledge of a power engineer. Lets face it, it's his money that is talking, not his engineering knowledge-which seems lacking with his pie in the sky schemes. Of course, no one is going to correct him as long as they think they can climb aboard his gravy train. For a wealthy man, he should be educated by now that money attracts flies. Maybe he is just full of himself or maybe he really believes he can accomplish something-and maybe, both.
7-24-2008 @ 4:44PM
HELEN GRACE said...
Pickens for President!!
7-24-2008 @ 5:54PM
william lindblad said...
Phillip, you should learn about cars and energy potentials. The only fuel cells running are buses made by Mercedes on the streets of Iceland. It's experimental and at least ten years away. They have hydrogen tanks and run the gas thru a membrane to make oxygen. Comparing propane or natural gas to hydrogen is apples and oranges. The lift truck industry and many gas co.'s have been running equipment on these two for years. The technology is is here and a lot easier to install. When you buy your first hydo/ox bar-b-que, let me know.
7-24-2008 @ 9:59PM
joe said...
Our government needs the gas taxes to build our highways and bridges. Someone has to be a leader and get a different method of tax or we will never get off fossil fuels
7-25-2008 @ 11:07AM
gumbo koontz said...
David
Look , listen carefully.... if not for the small cars, you and your big PickUp will be stuck in line for gasoline everyday.... People buy small cars to save gas yet you squander gas away in your gas guzzling PickUp, duh? be careful with what you are spouting about..
7-31-2008 @ 10:29AM
jpdr1100 said...
Lindblah, you might want to do some learning yourself. With regard to your comment about the only fuel cells operating being in Mercedes buses in Iceland: BS.
I've ridden the fuel cells buses in regular operation in Hartford, CT, and I'm sure they aren't the only ones in operation. In addition, Honda has placed fuel cell vehicles in operation in selected fleets in California. BMW has been demonstrating its hydrogen fuel cell 7 series to anyone who will listen, though I don't know if they in actual service yet.