President Bush's speechwriters are top-notch, but they're not very good at filling gaps between the lines. I heard volumes of information shouting from empty spaces in Bush's State of the Union address. Let's focus on what was said and - equally important - what was omitted concerning energy.

Bush vaguely mentioned alternative energy about a year ago. This most recent focus was?well?more focused. He specifically discussed alternative energy vehicles. From a previous article, you and I know these vehicles are currently in production and marketed in some major cities worldwide. In this case, the speechwriters have nothing new for us.

Our President stated, "?the first car driven by a child born today could be powered by hydrogen, and pollution-free." The kicker in that sentence is that this isn't a possibility - it may be a necessity. But, before you go dripping dollars into hydrogen-powered cars, let's take a look at why a change in energy policy is a pertinent issue.

The University of Indiana gathered figures from the U.S. Energy Information Administration and compiled a report based on three questions:

1. What are the projected remaining supplies of major sources of energy now in use?
2. Where are these resources located?
3. Can we estimate when these resources will be exhausted?

To be fair, this report can be somewhat misleading as it's assumed the current rate of consumption and production won't vary. It's based on current known and projected reserves. Projection is a shaky job, but someone's got to do it. However, even if we underestimate predictions and virtually eliminate the need for oil in our vehicles, the results are still scary.

Oil is used for more than electric energy consumption. It's also used in textiles, medicinal products, paints, and plastics, etc. At the current use of global consumption (of which the U.S. consumes one-fourth), we'll run out of oil reserves in about 270 years average. The U.S. only has about 50 years of reserves left. The chart in the report shows Iraq off the charts, with about 700 years of reserves left. Does that surprise you? I hope not. Considering the average time left is 270 years, the fact that - out of twenty countries named - Iraq holds 700 years of predicted reserves is thought provoking, no?

This same chart shows Venezuela with more than two times the oil reserves produced by the United States. Global oil prices rose over $30 per barrel this year due to lower exports from Venezuela and fear of conflict with Iraq. Venezuela is a founding member of the global oil cartel and a leading proponent of production quotas. If we have just a few more countries on the oil embargo bandwagon we might be in dire straits. Some of the largest producers of oil are not necessarily the fondest admirers of our country.

Another non-alternative traditional source of energy is coal. According to the university report, the largest current producer of coal is Nigeria. However, production rates are slow and much of the remaining resources are high sulfur coal. This particular coal is the culprit of major air pollution.

The average estimated range of reserves on coal is placed at about 200 years. We still have resources in this country, but I'd advise you to type "coal resources U.S." in your search engine and read current reports about coal-producing facilities in the U.S. You'll find advisories concerning coal production, cost of production, and the quality of coal. Don't let that stop you from investing in coal or oil. Just be aware of the risks and do your research.

There might be a constant supply of extraction resources, but a time will be reached when the amount of energy needed to recover these commodities will equal or exceed the energy used for extraction. At this point, production becomes a break-even or a net energy loss situation. This situation added to public awareness can produce some major problems for extraction resource businesses.

For instance, natural gas is a highly explosive issue - no pun intended. Cora and I witnessed public outcry about natural gas extraction in the west this past summer. They successfully denied drilling for natural gas in areas of Colorado. This state stood more to lose in democracy than they stood to gain from drilling. Beyond what we produce as a country, which is predicted to expire in about twenty-five years, we need to look to Iraq once again for these resources. However, the world as a whole has about 100 years of this resource left at current consumption and projected reserves and production, according to the university report.

Sustainability of resources depends on reduction of use and a decrease in population. Since none of this is happening, alternative energy looks like a fruit ripe for picking doesn't it? This investment opportunity also has pitfalls, but some have some investment gems waiting to be uncovered.

Other energy sources include fusion and nuclear energy. Hydrogen, the President's choice for automobiles, is not a primary energy source. Neither are fuel cells, since these cells need to be fueled with hydrogen. However, both are open for investments. If you want to know more about these processes, make it an after-school project with your kids. Ask for their ideas? our children's imaginations may currently be the most energetic resource in this country.

Until then,
Linda Goin