Alright let's take this fantasy out to science fiction land. 100-150 years hence, there are no cars, yet no one is more than 6 hours distant from any other spot on Earth. In rural areas (of which there is now a resurgence) there is the bicycle ride to the town center, the trolley or light rail to a larger population center with high speed rail to the continental connecting hubs. Between these run the underground maglev trains at Mach 5. Of course near the equator some of these lines double as launch points for orbital and interplanetary journeys. The system is powered either by something to do with Earth's rotation or Bussard based fusion reactors. Actually this last point is rather interesting, if anyone here isn't more up to speed on it than I, the Navy or DARPA, can't remember which, is currently building and evaluating the seventh generation of the Bussard polywell fusion reactor. It is a doublewide tractor trailer size system, which prior to his recent death, Dr. Bussard felt was a few years away from commercialization. Bussard was also a science fiction writer, referenced in Star Trek with the "Bussard collectors". Of course others would object my science fiction scenario shows evidence of a terrible domination of nature with "brute force" solutions - which may be a reasonable critique. Still, why all the unnecessary concern here and gloom and doom ... all is well, polywell in fact. And if not, don't discount magical thinking, CERA sure hasn't.

Seriously, more rail is a tremendous idea and it is somewhat bizarre and disturbing in the current situation that US is doing so little, even as the PO headlight in the tunnel gets brighter.

I don't agree with the possibility of extensive tunneling being conducted in the near future. However, your last comment is spot on. Why is the government so lethargic when it comes to preparing for the aftermath of peak oil? Clearly the CIA has the best information on actual oil supplies. I can understand the official support for the oil companies and such but why no behind the scenes support for expanding Amtrak? Why not build in a new infrastructure while we still have relatively cheap oil? The cynic in me says that they see it as hopeless so they plan to take care of their own, pull up the drawbridge and let the rest of us fend for ourselves. Or perhaps they are so tied to the next quarter's results that they are incapable of reacting to a problem that is huge but won't officially strike till sometime in the future?

Their (the military-industrial complex) plan for the future combines authoritarian control of the domestic population, centralized corporatist control of the economy, and military control of international resource flows. The last thing they want is anything that would forward an alternative to this plan. The cutback in Amtrak and other idiocies and boondoggles (like ethanol) make complete sense under this set of assumptions.