It's Christmas 2005.
Former CIA Director Robert Gates sighs deeply as he pores over reports of growing unrest in Nigeria. Many Americans can't find the African nation on a map, but Gates knows that it's America's fifth-largest oil supplier and one that provides the light, sweet crude that U.S. refiners prefer.

The turmoil is preventing about 600,000 barrels of oil per day from reaching the world oil market, which was already drum-tight. Gates, functioning as the top national security adviser to the president, convenes the Cabinet to discuss the implications of Nigeria's spreading religious and ethnic unrest for America's economy.Should U.S. troops be sent to restore order? Should America draw down its strategic oil reserves to stabilize soaring gasoline prices? Cabinet officials agree that drawing down the reserves might signal weakness. They recommend that the president simply announce his willingness to do so if necessary.

The economic effects of unrest in faraway Nigeria are immediate. Crude oil prices soar above $80 a barrel. June's then-record $60 a barrel is a distant memory. A gallon of unleaded gas now costs $3.31. Americans shell out $75 to fill a midsized SUV.

Fast-forward to Jan, 2006. A blast rips through Saudi Arabia's Haradh natural-gas plant. Simultaneously, al Qaida terrorists seize a tanker at Alaska's Port of Valdez and crash it, igniting a massive fire that sweeps across oil terminals. Crude oil spikes to $120 a barrel, and the U.S. economy reels. Gasoline prices hit $4.74 a gallon.

Gates convenes the Cabinet again. Members still disagree on whether America should draw down its strategic oil reserves. Homeland Security chief James Woolsey, who ran the CIA from 1993 to 1995, argues that a special energy czar is needed with broad powers to bypass the bureaucracy and impose offshore oil drilling and construction of refineries.

That won't help now, though, or resolve any short-term issues, counters Gene Sperling, who was President Clinton's national economic adviser. The energy secretary suggests that relaxing clean-air standards could help refiners squeeze out every last drop of gas.
That makes the interior secretary, former Clinton Environmental Protection Agency chief Carol Browner, bristle. She blames Detroit for the mess because automakers failed to develop hybrids and other fuel-efficient cars.

The Cabinet can't agree on even the simplest short-term solutions. There aren't many options beyond encouraging car pools and lowering thermostats. There's no infrastructure in place to deliver alternative fuels such as ethanol or diesel made from soybeans or waste products.

Fast-forward again, to June, 2006.
Emboldened Saudi insurgents attack foreign oil workers, killing hundreds. A mass evacuation follows from the world's pivotal oil producer, the one country that could be counted on to boost production during shortages in global supplies. A take-charge guy with a Texas accent who led the CIA from 1991 to 1993, Gates calls yet another war-room meeting. Global recession looms. The world economy turns on cheap oil. Without foreign oil workers, how will Saudi Arabia meet its production targets and quench the oil thirst of America, China and India?

Oil prices have reached an unthinkable $150 a barrel. In Philadelphia, Miami and Kansas City, Mo., gas prices reach $5.74 a gallon. Now it takes $121 to fill that midsized SUV.



The development of fully reversible fuel cells (and further research into thin film solar cells to power the hydrolysis) needs to happen now.