But a year ago, the 81-year old chairman of BP Capital spent his own money to buy prime time on major networks and mobilized an “army” of believers in order to get the word out about the dangers of continued dependence on foreign oil.

Earlier this month, Pickens appeared on CNBC’s “Squawk Box” to discuss the progress of the “Pickens Plan,”which essentially seeks to reduce the nation’s dependence on foreign oil through a combination of wind-generated power and natural gas powered vehicles. The goal: Drastically reducing or eliminating the need for foreign oil in as little as 10 years.

His timing was perfect, as oil prices shot to all-time highs around $150 a year ago. The plan garnered a lot of attention. And to his credit, over the past 12 months, nobody else has articulated a plan as clearly and succinctly as Pickens’ has.

Today, however, oil prices are down some 54% and the U.S. is sliding deeper into recession. Is shutting off foreign oil still a concern? Have we made any progress in doing so? Are we any closer to a national energy plan?

The short answers are:

1. Definitely yes
2. Yes
3. Almost

Let me explain…

Get Rid Of The Rogues… And Pocket $400 Billion

While the price of oil has declined dramatically over the past year, our dependency on foreign oil is as great as ever. We still get over 70% of our oil from other countries, and it’s a huge security issue.

While the transfer of wealth – dollars out for oil in – is less, it’s still a huge net outflow of nearly $400 billion annually.

There’s no question that keeping that money here will not only have a positive effect on our trade balance, it’ll make a huge difference in the U.S. economy – a “free” $400 billion annual stimulus package, if you will.

Alternatively, according to Pickens, “If we go 10 more years with no plan, we’ll be importing 75% of our oil and it will cost us $300 a barrel.”

Even if he’s wrong by 50% – which is unlikely given increasing world demand – it’s still a big problem. So how do we get rid of the rogues?

The “Anti-Oil”: U.S. Natural Gas Reserves Soaring

In terms of our progress in displacing foreign oil, there’s only one quick way to do it: Replace it with natural gas.

The Potential Gas Committee – the nation’s authority on natural gas supplies – recently issued a report that showed a substantial increase in U.S. natural gas reserves.

The report indicated that the nation’s gas reserves have increased by 25% to 2,074 trillion cubic feet (tcf) from 1,532 tcf in 2006 – the last time the report was issued. It was the largest increase in the 44-year history of the committee and its language reflected that: “[The report] shows an exceptionally strong and optimistic gas supply picture for the nation.”

That’s an understatement. By 2030, it projects a supply of nearly one hundred years – the most in the world.

John B. Curtis, a geology professor at the Colorado School of Mines and the report’s principal author, said,“New and advanced exploration, well drilling and completion technologies are allowing us increasingly better access to domestic gas resources – especially unconventional gas – which, not that long ago, were considered impractical or uneconomical to pursue.”

The findings have shifted the focus onto natural gas as a possible transition fuel as we move from coal and oil to solar, wind, geothermal and other non-carbon sources of power. It couldn’t have come at a more opportune time.

A National Energy Plan: Slow And Steady, But Are We Winning The Race?

The best thing the government can do to move us away from fossil fuels is to provide funding and tax incentives to develop and use something else (and then get the hell out of the way). And it appears as though Congress is trying to do just that with natural gas.

H.R. 1835, known as the “New Alternative Transportation to Give Americans Solutions Act of 2009,” amends the Internal Revenue Code of 1986 to create jobs and encourage alternative energy investments.

Here’s what this act provides:

• An excise tax credit through 2027 for alternative fuels and motor vehicles involving compressed or liquefied natural gas (LNG).

• An income tax credit through 2027 for vehicles powered by compressed or LNG.

• A new tax credit for the production of vehicles fueled by natural gas or LNG.

• A tax credit for alternative fuel vehicle refueling property expenditures for refueling property relating to compressed or LNG and allow an increased credit for such property.

• Requires 50% of all new vehicles purchased or placed in service by the U.S. government by December 31, 2014, to be capable of operating on compressed or LNG.

• Authorizes the Secretary of Energy to make grants to manufacturers of light and heavy-duty natural gas vehicles for the development of engines that reduce emissions, improve performance and efficiency, and lower cost.

Now before I get a dozen e-mails pointing out that natural gas is just a different fossil fuel, let me head them off. There’s no argument there. But here’s where it’s very beneficial…

The Benefits Of Natural Gas – And How To Play It

Natural gas is a much cleaner burning fuel, produces less carbon emissions and, most importantly, it’s found here in abundance. It’s a walk in the park to produce new cars and trucks that run on it, and convert older ones as well.

And if it helps free of the grip of rogue nations around the world in 10 years or less, then I’m all for it. We’ll all be better off economically, and we’ll all have greater piece of mind.

How do you play it? Take a look at Clean Energy Fuels Corporation (Nasdaq: CLNE), a provider of natural gas as a vehicle fuel, primarily for fleet use in the United States and Canada. It designs, builds and operates natural gas fueling stations, and provides financing for natural gas vehicles. It and others in the sector will undoubtedly benefit from this legislation when it’s passed.

Source:  Energy Independence: The Progress, The Problems… And A Way To Profit

{Editor’s Note: One year ago, oil prices were atrecord highs… the U.S. political scene was gridlocked amid the presidential election… and a fellow named T. Boone Pickens was promoting a bold new plan to wean the U.S. off its oil dependency and towards wind power and natural gas instead (and Pickens is an oilman). Today, oil prices are trading around $68, so where does the “Pickens Plan” stand now? Investment U columnist and infrastructure specialist David Fessler reports on whether cheaper oil prices have dampened the drive towards greater energy independence, plus a way to play a natural gas-powered future.  Martin Denholm, Managing Editor, Smart Profits Report}

This from Investment U:

Under the Obama administration, I expect there to be many profitable energy investment opportunities under what will likely be a very “green-friendly” four- or possibly eight-year timeframe. Many of the opportunities will arise from his focus on energy independence and corresponding energy infrastructure.

Reducing energy bills means ultimately reducing demand and controlling its costs. Weaning the country off fossil fuels won’t happen overnight. After all, it took us over 100 years to get to where we are.

But Obama recognizes we need to get started now. His plan has several strategies that help reduce our need for fossil fuels while alternative solutions are developed. And we’ve found three companies that are perfectly positioned to help the United States “bridge” the gap.

The United States’ Energy Investment Opportunities

A quick, cheap and easy strategy to increase efficiency is simply to save energy. And one of the best solutions is to weatherize older homes. While homes built in the last few years are far more efficient than those built even 10 years ago, many older residences are huge energy thieves.

Since 1976, the U.S. Department of Energy’s Weatherization Assistance Program (WAP) has provided help to 5.6 million low-income families – enabling them to permanently reduce their energy bills. But help doesn’t come in the form of a check, which might be misused. It contracts for weatherization services on the homeowner’s residence.

Upgrading or replacing a home’s old furnace, sealing leaky heating ducts, fixing or replacing leaky windows and adding insulation reduces the average home’s heating bill by anywhere from 20% to 40%, and results in an overall annual savings of $358 at today’s energy prices. Replace old appliances and change out incandescent bulbs for florescent ones – and the savings get even more impressive.

Obama plans to expand this program, as nearly 28 million U.S. homes remain eligible for assistance. His goal under the Energy for America plan is to weatherize an additional one million homes every year.

Of course, the largest energy user in the country is – you guessed it – the good old Federal Government, which spent a whopping $14.5 billion on energy use in fiscal 2008.

Obama plans to lead by example: All new Fed buildings will have a 40% increase in energy-efficiency within five years. The new administration wants all federal buildings carbon-neutral by 2025 and he ultimately expects to achieve a 15% overall reduction in government energy use in just six years (2015).

Weatherize your Portfolio: 3 Energy Investment Opportunities

When looking for ways to play the energy efficiency/savings angle, the field narrows, but below are three energy investment opportunities. Adversely affected by the general housing downturn, many companies that would be a consideration under Obama’s plan are off the table.

There are a few we can consider, however:

• Apogee Enterprises, Inc. (Nasdaq:APOG) designs, services, installs and sells glass walls and window systems that make up the outside skins and entrance areas of large commercial and institutional buildings. Through its subsidiaries, it’s engaged in the design and development of numerous glass products, services and systems. Apogee’s glass will be in high demand for weatherizing the nation’s windows.Earnings have held up remarkably well, particularly in the face of the housing slowdown. It’s had little real effect on the company since its exposed more to the commercial side of the building business. At current levels, the stock has a yield of around 6%.CEO Ron Huffer had these forward-looking observations in a recent press release: “We believe that our markets offer significant longer-term opportunities, due to the increasing importance of green building, a sector demanding energy-efficient products that we supply and the overall growth in the use of value-added products in commercial construction projects.”
• A good blue-chip play that stands to benefit as well is 3M Company (NYSE:MMM). 3M is a diversified technology company engaged in industrial products, transportation, and numerous other sectors. Its industrial products division makes hundreds of items for the construction industry like window and door materials, including adhesives, tapes, films and abrasives.
• And let’s not forget General Electric (NYSE:GE), perhaps the best, safest energy and infrastructure play in the world. It has exposure to nearly every area of engineering and manufacturing that we use to build and power our country. Infrastructure and green energy continue to be focal points as spending in these sectors could jump-start the global economy back to life. GE is better positioned than perhaps any other firm to profit from this spending influx. And at prices of around $13 a share, it’s a steal – especially when you consider its nearly 10% dividend yield.

As Obama’s New Energy for America plan comes up to speed, investors could see a huge slug of cash – perhaps as much as $1 trillion – being thrown at the energy and infrastructure sectors.

And stakes in the above mentioned companies will make sure you get in on the action.

Source: Energy Investment Opportunities: Why 28 Million Customers Need These Upgrades

According to information collected by Chevron, worldwide investments in renewable and alternate fuels have increased nearly fourfold since 2004. In the past 12 months investors have poured nearly $150 billion into the biofuel sector. Biofuel volume will increase by about 45% by 2030 to meet future demand, but still will represent only about 10% of the total energy mix. This 10% is about equal to the current share. Relative quantities might not change much because overall global demand is growing so quickly.

Robertson added, “Energy efficiency is the most immediate and important action that each of us can take to start to reduce energy prices. The United States must become a nation of energy savers. In short, we need a ‘Made in America’ solution enabled by everything from human ingenuity to ’smart’ buildings to advanced vehicles and transportation systems. Markets are indicating that consumers are already taking action. You and your committee have a critical role to play to engage the US public and put the United States at the forefront of responsible energy use.”

Until Next Time…

Byron

Note: Byron King is a frequent contributor to the free e-letter Whiskey & Gunpowder. To receive daily insights into energy, oil, commodities and other natural resources sign up here!