Gas prices have settled a bit in the past few months, but with the cost of a gallon still hovering in the $2 range, many consumers are looking for ways to save bucks at the pump. In fact, although the quest for petroleum won’t die out, most consumers seem eager to embrace mainstream alternatives, while the global auto industry works feverishly to meet that demand.

With oil prices currently dropping faster than a botched John Kerry joke, a new concern has arisen that the rabid pursuit of green sources of energy will soon diminish. While it’s a valid concern, it’s not one that holds a tremendous amount of merit, according to industry pundits — not to mention a recent flutter of pro-green news.

Case in point is a recent statement written by Manufacturing Engineering editor Brian J. Hogan:

To placate the press, the automotive industry is announcing vehicles that conform to the template the general press likes — electric hybrids, ethanol vehicles, etc. That’s necessary, but no auto company should base its future on such projects.

There’s really no better place to kick off a dissection of green trends than Detroit News. The once-mighty car mecca has a surprisingly candid take on why alternative fuels are here to stay. However, one glaring point recently is that, despite falling oil prices, the quest for petroleum won’t die out like it did in the 1970s.

“One of the problems of investing in these [alternative] technologies are big capital investments up front. How will your investment do over time when oil prices are very volatile?” said Albert Walgreen, economist at the U.S. Department of Energy.

Yet:

…The costs of extracting oil from tar sands or refining ethanol from corn have fallen in recent years, even as oil prices have gone from about $20 a barrel to nearly three times that level now. Government and private industry are pouring billions into alternative energy research to curb the creation of greenhouse gases and promote U.S. energy independence.

Know what else is driving the progress of alternative fuels? Cold, hard cash, as this local news piece in Lansing, Michigan, points out. In a nutshell, the Internal Revenue Service says the 2005 Ford Escape two-wheel drive hybrid is certified for a credit of $2,600, while the four-wheel drive model for the same year is certified for $1,950. The tax credit applies to vehicles bought on or after January 1 of this year.

Guess nothing says “save the planet” like “show me the money,” eh? Well, as with any topic of this scope, money is always a motivator. But it turns out most consumers are just plain ready for green and alternative fuels to become mainstream, according to the findings of a recent survey as highlighted by Auto Spectator. The National Alternative Fuels Training Consortium (NAFTC) released results from a national survey that indicates:

• Fifty-five percent said their next vehicle purchase would very (16 percent) or somewhat (39 percent) likely be an alternative fuel/advanced technology car, truck or SUV.

• Americans are willing to pay more for alternative fuel and advanced technology vehicles if they provided the following benefits: better fuel efficiency (89 percent), tax breaks (83 percent), less dependence of foreign oil (80 percent), and less pollution and better health for those around them (80 percent).

• Twenty-seven percent said hybrid vehicles are most likely to be a significant alternative to petroleum-based fuel for cars, trucks, SUVs and buses within 20 years. Twenty-two percent said hydrogen and fuel cell technology is most likely to be a significant alternative by 2026.

While surveys like the aforementioned make it seem as though alternative fuels can’t get here fast enough, one potentially telling fact is that the global auto industry (or at least a notable number of automakers) appears to be working feverishly to one day meet that demand, according to Dow Jones:

This is an exciting time, a thrilling time with several industries working on energy solutions, and the opportunity to pair U.S. and global ingenuity is unparalleled; this is something the industry can and will achieve together, said Frederick Webber, president and chief executive of the Alliance of Automobile Manufacturers, a trade association comprised of nine car and light truck manufacturers.

Currently, about $39 billion globally is being poured into research and development into alternative-fuel vehicles. In the U.S., about $15 billion is going into that effort. However, according to Dow Jones, the U.S. needs to address a lack of a distribution system for ethanol and other renewable fuels, saying there are only 800 ethanol pumps in the U.S. out of a total 180,000 gas stations.

Certainly, distribution will play a huge role in the adoption of alternative fuels, but it’s obviously a moot point if there isn’t something other than gas to fill tanks. That’s why research and development over the next decade is so vital, an Oakland Times editorial stresses. A bill that would provide up to $20 billion in loan guarantees to automakers to develop alternative fuel vehicles says that the research and development has to be done in the U.S. This program would include all alternate energy, including biodiesel, electric and hydrogen.

U.S. Rep. Mike Rogers, R-Mich, a co-sponsor of the bill, said he saw this country’s mission to the moon “as a defining event in his generation’s history and sees this, the development and implementation of alternate energy, as the legacy of his children’s generation.”

Alternative-Fuel Vehicles on the Road: A ‘Real-World’ Guide
(Ethanol/E85, Methanol/M85 and Compressed Natural Gas (CNG))

Alternative-Fuel Vehicles on the Road: A ‘Real-World’ Guide, Pt. II
(Biodeisel, Hydrogen and Electric)

Resources

Will alternative fuel interest fade?
by Mike Meyers
Minneapolis Star Tribune (via The Detroit News), Oct. 26, 2006

Ford Gets Tax Credits for Alternative Fuel Vehicles
Channel 6 WLNS.com, Oct. 23, 2006

Survey Shows Americans Want Alternative Fuel and Advanced Technology Vehicles
National Alternative Fuels Training Consortium (via Auto Spectator), Oct. 12, 2006

Alternative-fuel vehicles can be new generation’s defining legacy
editorial
The Oakland Press, Oct. 2, 2006

US Auto Industry “Committed” To Renewable Fuels – Grp
by Tom Sellen
Dow Jones, Oct. 16, 2006