no need to fight Russia - just harness an alternative to oil

In this morning's UK Telegraph - yet another impotent appeal is given to a non-existent deus ex machina.

Yet again, the Bush administration has misjudged events. Moscow has drawn a line in the sand over Georgia and Ukraine. To push this issue is to poke the world's biggest energy producer in the eye.

Washington is lucky that China is not taking advantage of this crisis to help Russia inflict a crippling lesson. Russia holds $580bn of foreign reserves. China holds $1,800bn. Together they own a third of the $1.5 trillion stock of Fannie Mae, Freddie Mac and other US agency bonds. They are holding a gun to the head of the US Treasury, and the US financial system.

So how should we handle the bad-tempered bear? Data from the International Energy Agency suggests that oil prices will fall back for a couple of years as the global downturn squeezes demand, and new deliveries come on-stream from Brazil, Africa, Central Asia and the US itself.

Russia's leverage as supplier of 6.5m barrels per day of crude exports will slip, but not for long. But oil may well climb to a new equilibrium price above $150 a barrel once the next global cycle starts in earnest.

If so, Russia will become an even bigger headache. It is willing to use the oil weapon. It cut off 50pc of crude deliveries to the Czech Republic in July after Prague signed a deal with the US on the missile shield.

Obviously, we must cut our reliance on oil and gas even faster than we are already doing. Nuclear and clean power stations must be built with more urgency than we have seen so far. Tide and wave power technology should be given the same strategic priority as aircraft carriers.

If I were an American citizen, I would expect Washington to sponsor a Manhattan Project to harness the solar power on a mass scale. My apologies to the CIA/Pentagon if such a blitz is under way. Jim Woolsey, the former CIA director, told me last week that the US will end its strategic dependence on oil much more quickly than people realise. "We can defeat oil as a transport fuel. Russia won't be able to push us around any more within a decade," he said.

A deus ex machina (lat. IPA: [ˈdeːus eks ˈmaːkʰina], literally "god from a/the machine")[1] is an improbable contrivance in a story characterized by a sudden unexpected solution to a seemingly intractable problem.