There are any number of solutions to our energy problems that would work if we expend a huge amount of capital on them.

One of the problems we have is that oil price spikes will cause recurring recessions (or worse) that will destroy capital. This past recession has been rough on renewable energy because a good deal of the capital they had drawn on dried up.

How will we afford these solutions that are so enormously expensive?

Something I've been wondering is what the net effect on the grid would be of millions of compressors running simultaneously.

Just like another hot humid summer day in South Florida when all the AC units kick in at full load.

[url=http://anz.theoildrum.com/node/3388]The Oil Drum: Australia/New Zealand | The Air Car - A Breath Of Fresh Air Or A Waste Of Breath ?[/url] has more than a few answers of course. Coal powered compressors would be no better than petrol according to one source; would compressing NG which has been diverted from electricity generation be any improvement aside from having an ostensibly large supply?

I can't see NG being any sort of long-term solution. My estiamte puts US resources of N gas at about 1,000 bcf (includes tight, not hydrates). At 23 bcf / yr present consumption, that's only about 40 years so we shouldn't be doing ANYTHING to increase N Gas consumption, especially not using it to support purchases of new guzzler autos.

Small PHEV and EV's is the way to go, with maximum support for generating electricity renewably. Better yet is the new light personal urban transport systems on rails. Since the vehicles and tracks are so light we could easily afford to cover cities with track grids at 1/2 mile intervals, meaning everyone and every place would be within 400 yards of a station.