This election caused me to think about the history and advance of racial tension in America. But several months ago, when I believed the polls that concluded that the election was a “done deal”, I turned my focus to something else that I believe is in the “sky is falling” scale of problems.

At one time, I had theorized that the “End of the American Empire” would be self-sustained implosion. In other words, our end as a modern-day super power would not be a result of invasion from an outside enemy.

Top on my list was racial tension. It’s hard to conclude if the election of President-elect Obama fuels or quenches my theory, but I am going to guess that it was a good thing for America.

My second theory was that our implosion would result from infrastructure failure. Lately, I’ve been immersed in reading about our failed energy policies (or lack there of) and our consumption driven culture. (Thanks Kim for the copy of “Collapse”. Global warming aside, we are so dependent on a fine-line of supply and demand of fossil fuels (particularly oil), that we teeter on the brink of disaster.

Former oilman, Boone Pickens, has a best-selling book, “The First Billion is the Hardest”. I say, “former” oilman, because it is true. Rather than heading up a traditional oil and gas company, he now runs BP Capital, a group of hedge-funds that specializes in energy investments.

Boone recently spent $58 million of his own money to promote what he calls the “Pickens Plan”. In a nutshell, here is what he is pushing.

1. In 1970, America imported around 20% of its oil. In 1972, one of the planks in President Nixon’s platform was to be energy independent by 1990. After the Arab oil embargo of the late 70′s, you would have thought we would have been determined to make Nixon’s promise become true.

2. However in 1990, we were importing around 40%. After the first Gulf War, many of us learned that indeed the Middle East was a hot-bed for political instability. This was the first time that I am aware of, when oil dependency was mentioned in the same phrase of “national security”. Again, you would have thought we would get smarter.

3. In 2008, we are importing almost 68% of our oil!!!

At $65/barrel, that’s around 1/2 trillion dollars annually leaving our country (at $140/barrel oil, that’s 1 trillion dollars annually) . Pickens calls it the “greatest shift of wealth in the history of mankind.”

America’s population comprises around 4% of the world’s population, but we use around 25% of the world’s oil.

If indeed China, India and other countries are developing towards the envied “American way of life”, there is a problem that does not require any advanced economic theories.

The Pickens Plan wants to replace traditional transportation fuel (gasoline and diesel) with natural gas. As Pickens states, “It’s cheaper, it’s cleaner, and it’s domestic.” Half of our electricity is generated with coal (so much for finger wagging at the Chinese.) Around 20% is produced with natural gas. Pickens wants to shift the natural gas use towards transportation and replace it with wind and solar for generating electricity. He has “branded” the central United States (from the Dakotas to Texas) as the Saudi Arabia of oil.

He points out that there are 8 million Natural Gas vehicles in the world. Only 150,000 are in America. He believes that fleets (like buses and trucks) should be the first to make the transition, because the infrastructure for re-fueling could be done quickly. Pickens also points out that natural gas is the only fuel capable of moving a commercial truck other than gas or diesel. Batteries or fuel cells do not have the physical horse power.

As a side note, did you know that a natural gas burning Honda (that is available in Amerca) produces far less carbon emissions than a Toyota Prius? Also, GM and Ford manfucture natural gas passenger vehicles for foreign markets.

My last point is that it make me ill to hear accusations that Pickens is promoting his plan to enrich himself. Barack Obama, consistently received standing ovations when he stated that he wants to spend $150 billion for alternative energy. But California Propositions 7 and 10, which promoted alternative energy failed because their opponents tied the propostions in with Pickens — an “oil billionaire” (good buy Bradley effect, hello Pickens effect.) Pickens states that while he could have profited indirectly, because he is the founder of “Clean Energy”, the countries first owner of Natural Gas fueling stations, but the direct beneficiaries would have been Honda (who makes the only Nat Gas passenger vehicle) and buyers of those. (Prop 10 gave rebates.)

Think about this. A person in the Silicon Valley can make billions inventing a website with little social relevance, but he/she becomes an instant celebity. But a a guy makes money in the oil business, and he is an evil capitalist

I recommend that you pick up a copy of Pickens’ book read what he has to say. i believe him to be sincere in his movement. I believe that he is a smart man and a patriot.

I could be wrong, but as Pickens states, “If you don’t like my plan, then tell me who’s plan you like. If you can’t come up with one, then you must like the status quo, which is foreign oil.”