As we reported earlier, the X-Prize (of "paying people to shoot themselves into space in home-built rockets" fame) is bringing its "Revolution Through Competition" approach to the lofty goal of the 100mpg car. Well, they finally got the money together, thanks to title sponsor Progressive Insurance. And they even have a Senate resolution praising them for their bold, visionary whatever. So let the games begin! Oh, but first your garage-built go-kart must pass safety, cost, features and business plan inspections to ensure that only production-capable, consumer-friendly cars compete. Yup, they said business plans. Sorry Tesla!

Another day, another hybrid prognostication from Maximum Bob Lutz. We reported yesterday that Lutz said that one-third of GM's sales would have to be hybrids by 2015 to meet CAFE standards. Overnight Lutz has maximized his vision to 80 percent hybrid sales by 2020. The Freep reports Lutz spouting such cheery bromides as "Ultimately by 2020 we figure that 80% of vehicles will require some sort of hybridization. We cannot get to 35 miles per gallon with anything resembling the current product portfolio with anything resembling current technology." Gee Bob, ya think? To be fair, we know that all this CAFE standards talk isn't really the Car Czar's forte. In fact, it seems like just talking about it is making the poor guy depressed. "Around 2015 we're going to have to sell a ton of hybrids whether people want them or not," Lutz told the Detroit News. "It's basically going to result in the quasi-disappearance of V-8 engines." Now that doesn't sound like the Maximum Bob we know and love.

Is the oil bubble about to burst? Oil prices have fallen below $100/barrel and my dad, who is an oil engineer for Occidental Petroleum, has said prices will probably level off again in the $65/barrel neighborhood. That's where the big oil companies are predicting prices will go during the next six months to a year, too. Whoever predicts when the big fall will happen can make a lot of money playing the market. Demand and supply have been stable for about 6 months. That means oil is trading on speculation only and when they run out of suckers to buy expensive oil, the price will drop to more reasonable levels.

Autoweek 's Richard Truett reports that General Motors, feeling squeezed by ever-tightening fuel economy standards and ever-rising gas prices, is considering offering a turbocharged 4-cylinder engine for the base trim of its upcoming 2010 (for this week, anyway) Camaro. Speaking at the NY Autoshow, GM Vice-Chairman and daily TTAC newsblog fodderman Bob Lutz said he feels that the RWD drivetrains available from the Solstice GXP and Sky Red Line would make an excellent fit in a Camaro. Of course, the last time GM tried the i4/Camaro recipe, we ended up with the "Iron Duke" in slower-than-molasses 1982 Camaro. It's not so much the number of cylinders or the power output that bothers me – indeed, a 260 HP Ecotec is more powerful than some V8's of yore – but the turbocharging. To me, American muscle means a big, lazy, rumbling naturally-aspirated torque bomber with even power and torque-curves. I don't think I could ever get used to a Camaro with the exhaust note of a Cobalt SS.

With U.S. orders pouring in for its miniscule smart fortwo, Mercedes is wishing it hadn't cut the larger forfour from production. At the Detroit Auto Show, Benz honcho Rainer Schmückle revealed that a second-gen forfour was in consideration, although the decision hadn't been made to brand it as a smart or a Merc. Now MotorAuthority is showing a Schulte Design rendering of a potential successor to the forfour. Whereas the original was a reskinned Mitsubishi Colt with a conventional front-engine front-drive setup, this rendering suggests that the new model will be a stretched fortwo… rear engine and all. Don't take the rendering as gospel though, MB could well be pursuing other options. After all, pushing four passengers with a three-cylinder engine doesn't sound very… American.

Last January, Transport Minister Lawrence Cannon said that Canada will match the U.S.'s fuel-consumption benchmarks for new cars and light trucks. Meanwhile, Quebec and Manitoba have pledged to adopt more stringent California standards while Ontario warns that its automakers can't possibly meet them. The Canadian Press reports that Transport Canada is studying the trade-off between fuel-economy and safety. Even before the results are known, Canada's greens are up in arms. Clare Demerse, senior policy analyst at the Pembina Institute: "I would hope that the government would not, in any way, use this kind of research… as an excuse not to go the more aggressive vehicle efficiency standards." George Iny, president of the Automobile Protection Agency: "If you could reduce some of the presence of those large-type vehicles, unyielding full frames, you would be improving vehicle safety most likely." Why let the facts get in the way of PC public policy?

Crude oil futures surged to $108.21 a barrel today, the highest since trading began in 1983. Meanwhile, the S&P 500 and Dow averages, gold, platinum and other metals all dropped. Call it speculation, but with surging demand in China, investors currently view rising oil futures as a safer bet than anything else on Wall Street these days. "The grab for hard assets is on due to the lack of confidence in the rest of the markets at the moment." said John Kilduff, senior VP of energy at MF Global Ltd. in New York. Houston investment banker Matt Simmons sees prices heading to $120, "in the short term." Simmons, also known for Twilight in the Desert— his inductive analysis of Saudi oil fields– says, "I'm one of the few people who's not surprised to see crude at $107. I still think it's a bargain." Still, others worry about a ceiling. "The perception in the financial community is that the oil market is the one safe harbor," said Rick Mueller, director of oil practice at Energy Security Analysis Inc. in Wakefield, Massachusetts. "The speculation that's moving oil higher will eventually undercut some of the safety they seek. As prices rise, the economy will weaken and eventually hit demand." Gas prices? Not so much.

At the International Renewable Energy Center, President Bush was shown a modified plug-in hybrid Toyota Prius and a Mack truck with a biodiesel-friendly Volvo engine. According to The Detroit News, Bush sang the body politic electric. "We want our city people driving not on gasoline but on electricity. And the goal, the short-term goal, is to have vehicles that are capable of driving the first 40 miles on electricity." (Not coincidentally, 40 miles is the projected EV range of the Chevy Volt.) While the Prez signed an energy bill mandating 36b gallons of ethanol by 2022, he's refused to fund advanced battery research (chump change at $500m over five years). "We've got to get off oil," the former oilman pronounced. "Dependency on oil presents a real challenge to our economy." Yeah, but how about political dependency on subsidies?

“You’re adding an oil shock on top of a crunch on credit and a housing collapse. Even the U.S. economy cannot withstand all of that at the same time.” Nigel Gault, an economist at Global Insight, didn't mention falling new car sales or millions of endangered auto loans in his analysis of the impact of rising U.S. gas prices. But then, he didn't have to. It's been clear for years how this one will shake out, with truck-heavy domestics losing both sales and market share. The New York Times says that when it comes to American gas prices, the only way is up. "Energy specialists predict that, as demand picks up further this spring and summer, retail prices will surpass the high of $3.23 a gallon set last Memorial Day weekend." Surveying  the supply, demand (both international and seasonal) and production equation, AAA spokesman Geoff Sundstrom reckons we could see $4 a gallon gas this summer. “We’ve gone from a worrying situation for gasoline to one that is quite alarming." Meanwhile, automakers placing their bets on oil burners will not be happy to read that "on Tuesday, diesel prices rose to a record $3.60 a gallon, compared with $2.62 a gallon last year." 

So there's this big deal panel of "independent experts" from the National Research Council that advises the National Highway Traffic Safety Administration (NHTSA) re: federal mpg standards. The last time the Council got together, they deemed diesel engines too dirty and hybrids as "too niche" for inclusion in their final report. Flash forward seven years and the Council finds that diesels could deliver 30 to 40 percent improvement in fuel efficiency over comparable gas engines. This time 'round, full-electric and fuel cell-powered vehicles didn't make the cut; "the committee does not expect commercialization of fuel cell vehicles or widespread marketing of all-electric vehicles before 2020." Although Congress insists that regulations must focus on gas engines– as these represent the vast majority of vehicles on the road– the inclusion of diesels in the new report may presage regulations allowing a new era of European-sourced high-efficiency oil burners in the U.S. Provided, that is, California doesn't trump the feds again and tighten their particulate standards, again…

Honda's Insight was America's first hybrid (1999). While the Deco-skirted skinflint's choice was a far more distinctive-looking and fuel efficient machine than the Prius, Toyota's gas – electric model had the edge on practicality (four seats vs. two). When Prius sales caught fire, Honda dumped the Insight in favor of a hybrid Civic, and then Accord. Sensing the new models invisibility (zero green creds), Honda's marketing department wanted to promote them as earth-friendly rocket ships (the Accord Hybrid was the fastest variant). Unfortunately, political correctness ruled (ruined?) the day. After going nowhere fast (saleswise), Honda axed  the gas – electric Accord. And now Honda's ready for another go. The Motor Authority says Honda's opting for a three-pronged hybrid sales strategy. First up: a "global hybrid" that's both smaller and cheaper than the current Civic hybrid, based on the Fit platform. (Barring foreseen internet leakage, it will debut in Paris.) Next, the Civic Hybrid (why not? they already make it). And then a range-topping somethingorother, based on the CR-Z hybrid concept pictured here, unveiled in Tokyo last October. We know Honda's got the engineering chops to give Europe's micro-car owners a decent run for their money. But can Honda hit the design/practicality sweet spot currently occupied by the Prius? As always, you'll be the judge, ASAP.

According to American Honda VP Dan Bonawitz, Honda is the BMOC when it comes to automotive innovation, and that includes hybrids, clean diesels and fuel cells. As EV World reports, just don't put an E in front of Honda (either automotive or pharmaceutical). The Japanese automaker's investigating various electric drive technologies and may still introduce a hybrid-electric CR-Z sports car, BUT Honda isn't impressed enough with current battery technology enough to pursue a true electric vehicle. Bonawitz would rather talk about the new, improved FCX Clarity, in which the fuel cell system and battery pack take-up no more space than a gasoline-electric hybrid power plant. Bonawitz estimates that Honda's hydrogen fuel cell vehicle is three times more efficient than an equivalent conventional gas burner and 2.5 times more efficient than a compact hybrid. He rates the Clarity's EPA combined cycle at 68 mpg with a 60 percent reduction in CO2 emissions. Bonawitz also claims that the Clarity's tank-to-wheel efficiency has been improved to 60 percent. For some reason, he glosses over the hydrogen production inefficiencies. Until that process stops being a net energy loser, the fool cell label sticks.

According to The Los Angeles Times, “Americans are getting serious about using less gasoline.” To wit: one James Eric Freedner. The Sun Valley legal secretary got so fed up with high gasoline prices that he tucked his Toyota Tacoma in the garage, switched to motorcycle commuting, stopped driving to the beach on weekends and began grouping errands. "The price [of gas] was just eating up what I earned,” Freedner kvetched. “This is the best thing I can do to make ends meet." Point taken. "Raise the price high enough, and you will see that there is a lot more that people can do,” says Edward Leamer, an economist at UCLA. The Congressional Budget Office (CBO) recently released study, The Effects of Gasoline Prices on Driving Behavior and Vehicle Markets, asserts rising gas prices has motorists taking fewer trips, driving slower and paying premiums for the most fuel-efficient vehicles. Your tax money hard at work.

Actually, UK scribe Steve Wakefield says nothing of the sort. In fact, his review of the new Bentley Brooklands doesn't offer much in the way of literary thrills. But if you're a student of serious horsepower, hand-stitched pampering and tightly focused branding, Wakefield's luxury car liturgy will be music to your ears. For those of you who can't get enough power, the £230k two-door is "powered by the most powerful V8 in the company’s history:" a twin-turbocharged 6.75-liter mill that stumps-up 530bhp @ 4000rpm and 1050Nm of torque at 3200rpm. (No mention of mpgs.) Good thing customers can opt for the largest brakes in the world: 420mm, cross-drilled, carbon/silicon carbide fronts with 356mm rears. And the factoids keep coming! The Brooklands makes the 50 to 70mph "overtaking dash" in just 2.4 seconds, tops-out at 184mph (or more), boasts "the largest rear seat area of any production coupé in the world" and handles well (you know; for a car that weighs more than southern Rhode Island). For some reason, Wakefield feels obliged to end his piece by touting the car's "infinitesimal impact" on global warming. He also advises Brooklands owners to middle finger salute the greens. "It’s a statement, an opportunity for the world’s richest to say, 'This is going to be my car. I’m going to enjoy every minute spent specifying it and driving it.'"  

As drivers replace their gas-guzzlers with more efficient vehicles, drive less and/or start using alternate transportation, gas tax revenues are dropping. The Seattle Post-Intelligence reports that Washington state is responding to this environmentally beneficial trend with an annual tax tied to a vehicle's EPA-rated fuel economy. Under Senate Bill 6923, a Prius owner will pay $60 per year, while an H3 owner would be dunned three times that amount. Bill sponsor State senator Ed Murray denies the measure is a greenwashed cash grab. "The (governor's) climate advisory team said that the biggest global warming problem in this state is actually from transportation." How a state can have a "global" warming problem isn't quite clear, but Ed claims Washington's industry is "fairly clean." The real problem? "The number of automobiles." Lower-income drivers will be hardest hit by the new rules, as they are least capable of switching to newer, more fuel-efficient vehicles. Estimates show they'll have to pay an average of $113 per year.