I read this article earlier today. Liquid coal?? Sounds interesting. It could be the next great thing that will lower energy prices and reduce our dependence on foreign oil. Sounds great. Where do I sign up??
JUST KIDDING. There is one BIG problem with this solution. Coal is still a fossil fuel. The long term solution for energy cannot depend on something that will eventually run out.
Here is my take on what needs to happen/ what will happen for the future of energy.
We cannot achieve stable energy prices using fossil fuels. There will always be a supply issue. I feel that we are moving towards 100% electric cars. Hybrid's are just a stepping stone. I believe lithium-ion batteries have the potential to power cars (without the drawbacks of limited range/power). They are still falling in price. Cars could then be plugged in at night when the power grid is underused. Electricity is the CHEAPEST known way to power an automobile. Electricity generally comes from oil, coal, or nuclear. In California, I know about 30% of the energy is from renewable sources (hydro, wind, solar). But to deal with the massive increase that would be required to power cars, I believe we will be using much more efficient solar energy. Solar panels are incredibly inefficient (6-10% efficient, up to 15% efficient, but very costly). With the advances in nanotechnology, we WILL make quantum leaps in solar efficiency. Someone would win a nobel prize if they designed an 80% efficient solar sell. That would be enough to allow cars to be driven off electricity.
Ethanol/Methanol are not a solution. E85 is a blend of 85% ethanol and 15% gasoline that has been hyped up recently. The fact is that you get about 60% of the BTU's you would get from normal gasoline (basically, you need more gallons of E85 to get the same kick as gas), eliminating any cost savings.
And plane and simple... By using ethanol for energy, you are trying to solve one of the worlds big problems (demand for energy), but hurting the world's BIGGEST problem, and that is world hunger!!
In order to make enough ethanol for the US, we would have to use 75% of our farmland. Not an option. Ethanol will not work.
Hydrogen powered cars may become practical one day, but not in widespread use for MANY, MANY years. Even though hydrogen is the most abundant element in the universe, h2 is rarely found on earth. It is too reactive. It usually reacts to form water. So to get h2 fuel, we have to run the reverse reaction (2 h2o --> 2 h2 + o2), and that takes a good amount of electricity. Hydrogen is very dangerous and powerful (see Hindenberg or Hydrogen bomb). Have you ever seen the ground wires that hydrogen cars must use during fueling? They are massive. The hydrogen needs to be stored at 4 degrees kelvin (approximately -270 C and -500 F) and 10,000psi (can you say explosion). Even at 10,000psi, hydrogen will take up a decent amount of room. Plus you need heavy and thick metal to enclose that that hydrogen (more weight, less room). I cannot see this fuel being used on an airplane, EVER!! Just too dangerous and too many negative aspects to flight (weight, room, etc...)
So I feel you will see all electric cars down the road. Solar energy will help power these. Perhaps hydrogen fuel. This will drastically reduce the demand on crude oil, leaving it much cheaper for use in airplanes (and without the volatile price fluxuations).
I admire JetBlue's attempts to lower oil prices, but any changes here would only be temporary and cause very slight drop in the price of fuel. The real solution to our energy problems will come with the developement of batteries capable of storing lots of electricity, and solar cells that are both efficient and cheap to manufacture!