Posted: February 26, 2008

As much as Felix Kramer, one of the foremost experts on cars and trucks that can run on electricity from an outlet, expects plug-in vehicles to revolutionize transportation when they hit the market in large numbers between 2010 and 2012, he is well aware that it could take 10 years or longer for his revolution to really take hold, given that most of today’s cars and trucks will likely still be on the roads in five to 10 years time.

Then again, Kramer said during a lengthy conversation with EnergyTechStocks.com, there are a number of small private companies working on technology that may enable today’s vehicles to be retrofitted so that they also can run on electricity as well as gasoline.

Kramer didn’t want to go into much detail. He declined to go on the record with the names of any companies working in this area, arguing that it’s too soon to shine a public spotlight on them. He did say that companies are working on different technologies to achieve the same end, namely, to cut gas consumption in today’s vehicles by somewhere between 20% and 50%.

Should this come to pass, the implications are staggering. Just imagine if you could take your car to your mechanic and, for not too much money, get it retrofitted so that you could go home, plug it in, and start running on electricity as well as gasoline. If a significant number of the 800 to 900 million or so vehicles currently on the road were retrofitted to partially run on electricity, the fortunes of at least four monstrously big industries would be radically altered.

The most obvious industry that would be affected would be the oil industry, whose primary product would suddenly be in less demand (Bad news for OPEC, too). Demand for electricity would suddenly rise, along with the fortunes of many power providers. The automobile industry might be turned upside down, with manufacturers leading in the drive to bring plug-ins to market getting a big boost (Good news for General Motors). Corn, soy, wheat and other agricultural commodities might be thrown for a loop, given the possibility that biofuels would suddenly look less appealing compared with plug-in electric vehicles.

To be sure, all this is just speculation until someone produces an economical plug-in retrofit kit. Still, the mere fact that several companies are working on the technology is a fact every investor needs to remember.

Tomorrow, February 27, 2008 – Part 3 of the Felix Kramer Series – How the Next President will Spur an End to America’s Oil Addiction