Editor’s Note: Meeting the Challenge is an open-ended series from EnergytechStocks.com intended to build a blueprint for how the world can meet the incredible increase in all forms of energy that will be needed by 2030 without endangering the environment or nations’ security. In the coming weeks and months, recognized experts will share their ideas, and important new investment themes (including some that could turn out to be worth many billions of dollars) should emerge.

Posted: September 12, 2007

As much as the SUV has been depicted as Public Enemy #1 in the campaign to increase the fuel efficiency of vehicles, Matthew Simmons says the SUV isn’t so bad.

What is bad, the noted Houston investment banker told EnergyTechStocks.com, is an SUV stuck in traffic. “Traffic congestion is the single biggest user of oil.”

As bad as traffic congestion is today, it’s about to get far worse in the U.S. and elsewhere. A 2006 study done for the Reason Foundation by University of North Carolina at Charlotte professor David Hartgen predicted that in 25 years, the peak-hour commute in 30 U.S. cities will require 50% more time than in off-peak hours. That compares with just four such cities today (Los Angeles, Chicago, Washington and San Francisco-Oakland).

In Parts 1-3 of Simmons’ series of stories, the energy investment banker said that meeting the challenge of securing the world’s energy future would require that the world adopt a policy of “conservation production” in order to extend the life of our remaining oil supply. Also, oil producers should be forced to provide transparent data. In addition, there should be sweeping new research into the potential for micro algae found in oceans to become a vast new source of oil.

Now add to these three ideas the notion that more people and goods should be transported by water in order to relieve traffic congestion on the world’s increasingly clogged highways.

“When you realize that 60% of all people in the world live within 40 miles of an ocean, it makes perfect sense” to utilize waterborne transportation to the fullest extent possible, Simmons told EnergyTechStocks.com.

Just like a technologically-advanced generation of clipper ships once moved people and freight on the high seas, Simmons said there needs to be a new generation of technologically-advanced ships that can transport people and goods in record time over short and long distances. He said the U.S. should emulate Norway, where waterborne transportation is far more common.

Simmons said that moving freight cross-country by truck was an unsustainable use of oil. Rather, he said, move that freight 40 miles to a seaport and load it on a super-efficient boat.

Part 5 of Simmons Series will run on Monday, September 17