My personal favourite stuff up on the alternative fuels front is Bush's idiotic ethanol scheme in the US where 40% of US corn production is now being made into ethanol. Which has caused a tripling in corn prices (much to Mexico's irritation as their basic food is corn-based) and no real effect on America's use of ethanol based fuel (which has a lower octane rating and damages engines long term). What a mess.
At present, there is no commercial substitute for petroleum based transport. Much to the delight of our OPEC non-friends and world stability.
