Back in April, Clark had a 3-way conversation with nationally syndicated talk show host Neal Boortz and WSB-AM radio personality Herman Cain (via remote). Click here to see the video.

At the time, the price of oil was around $130/barrel. Clark went on record predicting that the cost of gas at the pump would again be in the upper $2/gallon range. Boortz and Cain laughed at him and predicted gas prices in the $4-$5/gallon range.

Today, some states have gas for under $3/gallon. That's not exactly a bargain, but it's much better than we've been seeing. The wholesale cost of a gallon is $2.04, but that should fall to maybe $1.75 in the next few weeks. So you may be seeing $2.25/gallon soon -- barring any unforeseen world events.

On the home-heating front, there was recently a government report that stated heating your home this winter will be 15% more expensive than a year ago. But the last trade of natural gas today was around 68 cents/therm. So for the 57% of Americans who heat with natural gas, it should be potentially more affordable than last winter -- unless your provider locked up supplies too early in the year.

Oil demand in June was down just under 6% year over year, according to a new report. That's a massive drop in demand considering most driving was thought "inelastic" by economists -- meaning that it had to be done regardless of the price of gas.

But we've changed our routines to drive less; take fuel-efficient vehicles if we have multiple cars; and buy fuel-efficient when it comes time for another car. An unexpected consequence of driving less has been a drastic drop in road fatalities. The University of Michigan reports we're seeing the lowest number of deaths since 1961.

Fatalities were down 22% in March and 18% in April. Yet our driving is only down about half as much. So what gives?

Clark believes the high cost of gas has forced a lot of teens off the road, which equates to lower fatalities. He's seen that in the case of his own teenage daughter and her driving habits. Meanwhile, many people are driving slower to get better fuel economy. That, of course, also has contributed to the drop in fatalities.

So if you're looking for a silver lining in the dark cloud of high gasoline prices, there it is!

Many Americans are tired of waiting for automakers to develop mass-market solutions to our oil-dependent cars. They're converting cars to run on electricity on their own, according to a Smart Money article Clark read.

The conversion kits cost a few thousand dollars, but the benefit is that you can use zero imported oil to run your car. Now, if people in their own garages can make any car run on electricity, just think what the collective wisdom of our nation could do toward creating independence from foreign oil. Our national security depends on it.

Or we could just continue to fund oil-rich nations like Russia. Putin is taking zillions of our petrol dollars and creating mischief in Soviet Georgia. Western democracies have been long-time supporters of Soviet Georgia. But Russia isn't going to allow them to go democratic. If you're in doubt, just look at Putin's eyes -- which Clark's wife calls "shark eyes" with their cold, lifeless look. Boy, did Bush have it wrong early in his administration when he thought he found a soulmate in Putin.

Big Oil, meanwhile, thinks we'll need petrol forever. But we're getting so close to energy independence, especially with solar and wind. What we need is a coherent national energy policy to make it happen.

Right now, a focus on the overriding national interest is what's missing in the oil/alternative energy debate. Government is stuck. It's individuals who are instead making it happen. And for that, Clark salutes you.

Clark is often way ahead of the curve when it comes to money-saving vehicles.

Decades ago, he got a 3-wheeled car called the Freeway that got 100 mpg. Recently he read that an automaker named ZAP has teamed with the state of Kentucky to make an electric 3-wheeled car. The ZAP will go 40 mph and cost about 2 cents/mile to operate.

About 8 years ago, Clark bought his first hybrid -- a Honda Insight. Today, another hybrid called the Prius is in such demand that even 2-year-old models with 30,000 miles are selling for the manufacturer's suggested retail price.

Last year, Clark got the Honda Civic GX -- a natural-gas vehicle. Now comes word that his new ride is the hardest car to get in the United States!

That puts Clark in a dilemma: Should he capitalize on the situation and sell his Honda Civic for more than he paid for it? Or should he keep it and continue to enjoy the tremendous fuel savings? What would a capitalist do? He'll have to run the numbers and get back to you!

There's good news and bad news on the energy price front. On one hand, the price of crude oil continues to drop. On the other hand, Americans have relatively short memories! Edmunds.com reports that people have already stopped looking at small cars and are looking at larger vehicles again now that gas prices have eased up a bit. Didn't they learn anything from the pain at the pump?!

Meanwhile, a recent ABC News poll shows that two-thirds of people of all political persuasions favor offshore drilling. But if you think drilling is the "be all, end all" solution, well, Clark begs to differ. He's not opposed to it, but it does need to be part of a larger picture.

The same poll shows that less than 50% of people are in favor of opening new nuclear power plants. Perhaps the Iran syndrome -- where the pretense of peaceful nuclear policy comes with the threat of more belligerent uses -- has scared people off nuclear energy in our country.

Clark is also a fan of solar and wind power. He wouldn't be on radio if he wasn't into hot air, right?

In related news, the penny-pincher was heartened to read that many Americans are now buying Energy Star washers when it comes time to replace the old appliance. Several weeks ago, Clark even told you about a new waterless washing machine. Sound strange to you? The best solutions are often "outside of the box."

It used to be that weather was the topic of choice for small talk. But these days it's gas and the high prices at the pump. Callers are telling Clark that some gas stations won't let you fill up your tank completely; they cap you at a certain dollar limit. This helps protect them from drive-offs and bum credit card numbers in the age of inflated gas prices. If you go back 3 years ago, the cost to fill up was 40% what it is today. That's an enormous change in a short time.

Since we can't control what we pay at the pump, we'd better start controlling other factors. In Denver, 400 cars have been equipped with technology to monitor how you're driving and let you know how to maximize fuel economy on the road. So far this experiment has yielded a 20% increase in fuel economy. Clark himself has become obsessive about using cruise control, even on suburban drives.

Years before computers were routinely in cars, Volkswagen helped increase fuel economy by 30% in its stick shift vehicles. They had a light that would flash and beep to alert you when to shift gears. Most drivers tend to shift too early and waste fuel.

Many more automated solutions will be coming in the next few years. But for now, it's all about controlling our behavior as drivers. That means no jackrabbit starts. When Clark got his first hybrid, a Honda Insight, he averaged about 58 miles/gallon. On the highway, he was getting 70-77 miles/gallon. It's all a matter of what you're willing to do -- be it drive a smaller car, drive smarter or drive less.

Brazil has long won praise from Clark for their energy independence thanks to native sugar. Virtually all their cars can run on sugar or gas or a combination of both. They also have had huge discoveries of oil as of late. In an ironic twist, Brazil may even join OPEC in the future because of their vast quantities!

The neighboring country of Colombia, meanwhile, also gets its gas from sugar. But where they're really leading the charge is with bio-diesel. Colombia uses palm oil, yucca, sugar beets and rapeseed oil to efficiently create diesel.

McCain and Obama have both been clear about the need for a new national energy policy with alternatives. This is not pie in the sky stuff, folks. Just look at our Southern hemisphere neighbors.

That being said, it's a kick in the teeth to our allies in Brazil that our Congress charges a 54-cent/gallon tariff for Brazilian-made energy. Meanwhile, American consumers are being held over a barrel of oil at the pump. Moreover, OPEC doesn't face any tariff whatsoever to send us oil. What is Congress thinking?

Other countries are getting it together on energy. Why not us?

Over the last few weeks, we've received hundreds of calls from people who wonder whether they should ditch their old gas-guzzling SUV/truck and buy a newer fuel-efficient vehicle to save money.

Clark usually says that it doesn't make sense to do so. But that's just general advice without looking at the numbers.

If you want to get really granular, Smart Money has a new interactive tool that features 11 variable fields where you can enter your trade-in value, gas mileage, daily driving distance, etc. The tool calculates how long it takes to start getting payback.

You may not like the answer you get. Sometimes the only way to make it work is to buy a used gas-sipper. In this respect, cars from Hyundai and Kia tend to depreciate much quicker than those from Honda and Toyota.

And if you're stumped on your trade-in value, know that Edmunds, Kelley Blue Book and others haven't stayed current with SUV/truck values. So deduct about 25% from whatever they say.

The IRS has new numbers on mileage standards that are up to just under 60 cents/mile. Clark has traditionally said that it costs you around 50 cents a mile to operate a vehicle, but now that's obviously changing.

Fuel is only a part of the cost. But we've become so myopic by only focusing on the mpg ratings. In fact, people are making emotional auto-buying decisions based on those mpg ratings.

Clark's Dash unit has added a feature that lists nearby gas stations and their prices. That goes to show our fixation on gas prices. Likewise, comparison sites like GasBuddy.com and others are booming.

But Clark encourages you to step back and think about the big picture. Even with $4/gallon gas, it's the overall cost of a vehicle that matters: Depreciation, insurance, the cost of your loan, maintenance, repairs, etc.

If you go from a gas guzzler that's paid for to a new vehicle with a 5-year loan, think about the cost of that loan every single month. Not to mention that dumping your gas guzzler will probably get you awful trade-in value.

You may need to reconsider that choice.

Gas rebate credit cards are hot right now. Is that any surprise? We're all shell-shocked by prices at the pump and the promise of HUGE rebates sounds great. But beware that these offers may only be good for a couple of weeks or months.

For example, BP has one heavily advertised offer for a card that gives you 10% back on gas for 2 months. After that, it drops to 5%, which is still not that bad.

But Clark doesn't recommend getting a rebate card for any one particular brand of gasoline. Consider this: The price of gas at BP may be, for argument's sake, 10 cents higher per gallon than other brands. So after the rebate drops down, you'd probably be better off having a plain vanilla MasterCard or Visa with rebates.

A word to the wise: Purchasing gas from a major oil company will usually cost more than at an independent. You can buy with confidence from indie brands because their gas is regulated by the government just like the majors. In fact, Clark only goes to the off-brands for gasoline because they're so much cheaper.

The Consumer Action Center has been getting a lot of questions about fuel economy boosters. During the energy crises of the '70s, the same thing happened with people selling pills and additives for your gas tank. The EPA now says that you shouldn't fall for these ploys. Out of 100 gas-saving devices tested, only 6 gave a tiny improvement in fuel economy -- and even those were nothing to write home about.

The reality is that you have to do the simple things to get better fuel economy. So unload your trunk, keep your tires properly inflated and slow down out on the road.

Years ago, gas pumps couldn't "read" prices above 99 cents/gallon. So when the price went to a $1/gallon, you actually had to look at a conversion sheet provided at the pump to figure out what you owed.

Now, what's old is new again. Some gas stations around the country can't read above $3.99/gallon. These stations may be forced to change their pumps at great expense, or we'll have to go back to charts on the pumps in states that permit it.

One final thought: There's an assumption that the gas prices we have today are the new floor and we can only go higher. That's called "inertia bias." But economics doesn't work that way. Prices could decline again, but who knows to what level. All bets are off, though, if there's a terrorist attack or war.

You've probably heard anecdotally that the cars we're buying have changed. GM, Ford and Chrysler are wounded ducks right now because so much of their business is in larger vehicles. New data shows that sales of the Big 3 have dipped below that of the smaller Asian cars for the first time ever.

The No. 1 selling vehicle is now the Honda Civic -- not the Ford F-Series pickup truck as it's been for years. In fact, sales of big SUVs are down to just 4% of the entire market.

People stuck in a new gas guzzler are always torn between keeping it and dumping it. Typically, you're better off keeping it and budgeting for the high gas prices. The reality is that fuel is still a small amount of the total ownership cost of a vehicle.

But if, for example, you have a 4-year old SUV, you may want to think about dumping it for a used fuel-efficient car. Depreciation will threaten your wallet more than the actual fuel costs.

Clark recently saw an analysis that found driving an SUV for 15K miles/year over a period of 5 years will cost you $100K. That factors in purchase price, maintenance and fuel.

The July issue of Consumer Reports has a cover story about gas-saving cars. There's a new top dog out there and it's the Hyundai Elantra SE. The No. 2 car is the Honda Civic EX (manual). Other top choices include the Toyota Prius, Mazda 3 and the Subaru Impreza. In the class of extra-small cars, the Honda Fit and Nissan Versa both got kudos.

Here's an unexpected development: Traffic in Los Angeles is not as bad as it used to be! Anecdotally, traffic anchors have been saying that commute time has reduced significantly. The Los Angeles Times theorizes it's because of the price of gas.

In fact, our gas consumption is down throughout the United States. So we do respond to price, though a 10% increase in price does not mean 10% of us will give up driving. It's more like a ratio of 100:1!

Consider this: Ultra cheap inter-city bus companies like Mega Bus have been successful in the Northeast and Midwest. But not so in Southern California. In fact, Mega Bus may pull out of Los Angeles because of low ridership. It would seem that Angelenos are willing to drive less, but they're not willing to ride a bus with strangers.

Across the country, what people buy and drive is changing. In multi-car households, folks are choosing the fuel efficiency of their smaller cars rather than the comfort of their larger vehicles.

Meanwhile, RV sales have collapsed. People who have them are parking them, and local RV dealerships are going out of business. But with hazard comes opportunity. If you like the RV lifestyle, now is a time to steal a sweet deal on this most unloved of all vehicles. Deals will be especially sweet on used RVs, which historically suffered heavy depreciation even in the best of times. The Wall Street Journal reports that the average price of an RV is down by a third in the last 2 years.

Suzuki and Chrysler are both offering fixed-price gas opportunities to drum up sales on select new models. With Chrysler, you get gas at a fixed price of $2.99/gallon for up to 12K miles for 3 years. Suzuki, meanwhile, is offering free gas for a number of months. There's been no match so far from either Ford or GM (Editor's note: Info accurate as of 05/15/08).

The Wall Street Journal ran some "what if" numbers on a variety of Chrysler models to see if their gimmick holds water. It turns out that gas would have to go up to about $4.10/gallon for their offer to pay off. No numbers were crunched for the Suzuki promotion.

So you've got to decide whether you are an optimist, a realist or a pessimist. The realists will say that gas may go up to around $4/gallon, as it already has in parts of California. The pessimists, meanwhile, will say that gas could go as high as $200/barrel!

Clark, however, is an optimist. He believes the price of gas will get lower. Our demand is already declining in the face of higher prices. Yet there is increased demand from developing economies around the world. So Clark is really in the minority when it comes to his viewpoint.

If it were Clark, he would take a cash rebate instead of the gas option from Chrysler. But you have to decide where you stand…

What we're buying in terms of vehicles has changed greatly. The typical behemoth 8-cylinder SUV has given way to the more economical 4-cylinder car. That switch alone can represent a savings of $1,500 or $1,700 in gas over the course of a year.

The Toyota Prius is selling consistently after initially being seen as a curiosity item in the market. The Toyota Yaris, Nissan Versa and Honda Fit are also popular sellers. But does it make sense to ditch your huge vehicle and get one of the wundercars? Usually, it does not -- unless you're at the end of your natural buying cycle. But to prematurely dump your vehicle, the numbers probably won't work out in your favor.

If you are in a gas guzzler and want out, try buying a used gas sipper. This may not be "sexy," but you can always buy that new car smell in a can.

Then there's the safety issue. Clark was recently talking to someone who has an Expedition and raised this point to him. Today's smaller cars aren't exactly "econoboxes" like the Datsun B210 that Clark got new in the mid-'70s. That dinky-mobile came with no radio, no AC and the floor was just a vinyl sheet over the metal! But the truth is that you can't outsmart physics, so if the Expedition hits a smaller car…

It used to be that weather was the safest casual conversation starter. Today it's the price of gas. Clark was stunned when he was filling up his wife's car and the bill came to $57; he knows that many folks can top that easily, but it was shocking to him! Recently while filling up a rental car, the pump didn't shut off properly and spewed out additional gasoline. Every last drop is precious these days. We are in a time when the high prices have us more focused on alternative solutions than ever before.

Clark loves his natural-gas vehicle, but that type of car hasn't been embraced by the masses. It can be difficult to find a filling station. Still, he firmly believes that American ingenuity will come up with answers to end our foreign oil dependence.

Here's an example: A man named Floyd Butterfield started the E-Fuel Corporation and is selling a home-fueling station that's the size of washer/dryer stack unit. It allows you to take sugar and make it into fuel to power your car. The price of the device is $10K, so the payback is nowhere near immediate. The New York Times reports that the sugar it would take to create a gallon of fuel would cost around 30 cents.

Will this catch on? Is it vaporware? We don't know yet. But the point is bright people are working on alternatives to power our vehicles. GM is preparing an electric car called the Volt, and Toyota is working on its plug-in hybrids. Meanwhile, there are experiments to turn tree waste into fuel, and Pres. Bush is a fan of switch grass as a fuel.

Many of these experiments won't prove viable. But we're at a new time when we're willing to listen and learn from people we might have dismissed as kooks in the past. For example, Clark is a fan of electric bikes for city commuting. They cost a third of a cent per mile to run and emit nearly zero pollution. Just be prepared to get wet on rainy days!

The run-up in price for a barrel of oil has created terror in the travel biz as more and more people opt for "staycations." That's when you're off from work yet you stay home to save money. To offset sluggish sales, some chain hotels and independent proprietors are offering free gas -- a 35-year old tactic not seen since the first energy crisis in 1973. Clark recalls that Days Inn locations actually had their own gas pumps on premises! SmartMoney.com reports that Hilton, Holiday Inn and Marriott are among the chains reviving this promotion at select locations only.

Want to save even more? Hotels that once snubbed Hotwire are giving the website their inventory as bookings soften. Look for deals on 4-star hotels because Hotwire inflates its ratings. You may even find some steals on accommodations in elusive New York City. Some people don't like Hotwire because the site doesn't disclose where you'll stay until after you pay a non-refundable deposit. Check BetterBidding.com to vet the hotels you're likely to get and TripAdvisor.com for user-generated reviews of the hotels. Finally, try using Priceline if you're willing to do the work of bidding. Visit BiddingForTravel.com for additional resources. Clark finds that he saves about 50% on car rentals and between 30% and 45% on hotels when using Priceline or Hotwire.

It used to be that weather was the topic of choice for small talk. But these days it's gas and the high prices at the pump. Callers are telling Clark that some gas stations won't let you fill up your tank completely; they cap you at a certain dollar limit. This helps protect them from drive-offs and bum credit card numbers in the age of inflated gas prices. If you go back 3 years ago, the cost to fill up was 40% what it is today. That's an enormous change in a short time.

Since we can't control what we pay at the pump, we'd better start controlling other factors. In Denver, 400 cars have been equipped with technology to monitor how you're driving and let you know how to maximize fuel economy on the road. So far this experiment has yielded a 20% increase in fuel economy. Clark himself has become obsessive about using cruise control, even on suburban drives.

Years before computers were routinely in cars, Volkswagen helped increase fuel economy by 30% in its stick shift vehicles. They had a light that would flash and beep to alert you when to shift gears. Most drivers tend to shift too early and waste fuel.

Many more automated solutions will be coming in the next few years. But for now, it's all about controlling our behavior as drivers. That means no jackrabbit starts. When Clark got his first hybrid, a Honda Insight, he averaged about 58 miles/gallon. On the highway, he was getting 70-77 miles/gallon. It's all a matter of what you're willing to do -- be it drive a smaller car, drive smarter or drive less.

Like many Americans, truckers are furious about fuel costs that can be as much as $4/gallon for diesel. A big rig's typical run could cost upwards of $1,000! Truckers are trying to draw attention to the financial hurt with a disorganized strike. But this is not the first time they've been behind the 8 ball. In 1973, Pres. Nixon proposed a strictly enforced 50 mph speed limit during the nation's first energy crisis. Truckers mounted an organized strike and called for a 60 mph nationwide speed limit. A compromise was reached at 55 mph, which became the national speed limit for many years. Nixon was trying to save fuel costs in suggesting the lower speed.

Money magazine reports that for every 10 mph you go over 60, that's equivalent to the price of gas going up another 55 cents/gallon. So you might try saving dough by slowing down. You can also improve fuel economy by unloading your trunk and keeping your tires properly inflated. So many people ask Clark when gas will drop again. Several months ago, he shared some pundits' predictions that the price of a barrel of oil would again drop to $45/barrel. That seems almost like a joke now. Meanwhile, Dow Jones reports that all those spam e-mails you might be receiving about gas enhancers are total malarkey.

You'll also be hearing a lot of politicians attacking the oil companies alleging a price conspiracy. But when oil prices were low, nobody thought there was a conspiracy to lower prices, right? The real problem is the demand for oil, coupled with the Federal Reserve's poor stewardship of our economy. The Wall Street bail outs have caused our dollar to decline in value, which affects the price we pay for oil. Don't forget that your neighborhood gas station owner actually wants cheap prices. That way you'll buy more chips, cigarettes and sodas!

For those of you who have been giving Clark some heat over his support of nuclear power, this note's for you: There are now plants generating solar energy by using rotating mirrors to follow the sun's path. These plants are popular in the Mountain West where there's fantastic sunlight. In fact, the sun gets so intense that Clark's brother -- who lives south of Phoenix -- has to flee to San Diego for about a month every year! The New York Times reports there are 2 of these mirror-equipped facilities already on the grid, while 8 more are in the planning or construction stages. It's good to know that there are new solutions on the supply side. On the demand side, meanwhile, Americans now are using less fuel thanks to fuel-efficient vehicles. Clark recently got a question about whether it was smart to ditch a 4-year-old SUV and buy a new fuel-efficient vehicle. The answer is no, you must instead buy a 4-year-old used fuel-efficient vehicle. Remember, let somebody else take the hit on depreciation.

Right now there's uproar as people look for a conspiracy involving the heightened gas prices. What's really going on? Well, the oil companies are making a profit…and when did it become illegal in this country to do that? The real conspiracy is us and the amount of driving we're doing and the amount of oil we're using. But that's only part of the story. The bigger issue is that our U.S. dollar is no longer the world's preferred currency. It's a 62-cent weakling versus the Euro. Today there are stores in New York that accept European and Canadian currency. Our dollar is stinking it up, and that's part of the reason why the price of a barrel of oil is so much higher. So what's the solution? Well, in the short term, we've got to do the opposite of what the Federal Reserve is doing when it lowers interest rates. The Fed's moves have only signaled to the rest of the world that we don't care about inflation. In the long run, however, we'll need fewer horses under the hoods of our cars, more hybrid vehicles and more smart diesels. Clark knows everybody looks for the enemy at Big Oil. But the reality is that our demand is driving what we pay.

Meanwhile, Clark is broadcasting outdoors today on the porch of the first completed house of this year's Habitat for Humanity build. This year Clark was able to build his 30th house with your help. The 2008 houses will all be dedicated tomorrow on Saturday, March 1. Clark's history with Habitat goes back to 1996. That was the year he first began sponsoring houses and building alongside listeners. In just 7 days of builds, volunteers go from cinder blocks to completed houses that become homes to working families. The future homeowners participate in the process through sweat equity. Atlanta Habitat for Humanity requires them to undertake 250 hours of volunteer labor; 1 year of classes on how to handle money; and for the first year they actually live in the homes as renters. After 12 months of on-time payments, they have a retroactive closing and the payments are applied towards their 0% interest mortgage. Clark loves that this program is a hand up, not a hand out, and that he can help build a house that will become a home.

CLARKONOMICS: The story on energy has been ugly for a while now. Every extra dollar you spend at the pump is a dollar that you don't have for your own life, plus it goes to foreign enemies who may want to harm our country. But here's some good news: Natural gas, which is 97 percent domestically produced, is in oversupply. Just under 6 in 10 people heat their homes with natural gas, including Clark. He also runs his car on compressed natural gas, which emits minimal pollution compared to electricity, oil and other types of power. Clark regularly tracks the price trends in oil and natural gas -- and the natural gas picture looks great. We had an affordable winter for heating with natural gas while people who heat their homes with oil have been hurting.

Don't expect natural gas prices to completely collapse; demand will continue because so many power providers can switch to burning gas to produce electricity. You will, however, see a lot of spin-off benefits for your wallet. Clark's home energy bills have been very reasonable. When he fills his car with natural gas, it's so much cheaper than gasoline because natural gas doesn't have to be refined like oil. With oil, there are so many markups along the way from the ground to the pump. The "crack spread" refers to the markup that refineries puts on their finished product. That's before they ship it to gas stations for another markup! With natural gas, it's like a direct sale from the ground into your tank.

Have you heard that Congress has reached an accord with automakers and environmentalists to have a 50 percent increase in fuel economy over the next 12 years? It's not yet clear if such a bill will make it to the President's desk. But we've got to get our act together for long-term economic strength. Otherwise, our dependence on foreign oil will make us a 98-pound weakling in the international arena. It's difficult to picture exactly how increased fuel economy will look. With that in mind, Clark wants to tell you about the Suzuki Wagon R (pictured here), which has been the No. 1 selling car in Japan for nine months in a row. Clark first saw this vehicle during a staff trip to Japan. The closest thing Clark can compare the Wagon R to is the old Scion XB, but even that's larger than this toaster on wheels that gets 60 mpg with a traditional engine. Unfortunately, Suzuki has no plans to sell the vehicle over here.

People are also bonkers about buying the SmartCar when it arrives next year on our shores, but that only gets 42 mpg in comparison! Other ways we'll be seeing increased fuel economy at play include clean diesel vehicles, turbo boosters on engines, hybrid designs and more. There are also some things coming that you might not be able to imagine easily, such as SUVs that are not truck based. Manufacturers will simply take a regular car platform and slap on a different top. The result will be an SUV that's easier to drive and offers better fuel economy, among other benefits. Clark gets a kick out of seeing tiny women driving huge SUVs when he drops his daughter off at school. Some moms just won't be caught dead in a minivan, which is considered the height of un-cool!

Several automakers announced new plans for alternative energy cars at the recent Los Angeles Auto Show. Honda unveiled its Clarity, a hydrogen powered fuel-cell vehicle. The Clarity will emit zero pollution. A 3-year lease would run you about $600/month, so it's not exactly cheap. Honda will be marketing its vehicle in Southern California, where there are several dozen hydrogen-filling stations. Chevrolet/GM has plans to put around 100 of its hydrogen vehicles on the road in SoCal under the Equinox nameplate. Meanwhile, Ford is working to launch its plug-in hybrids. Those kinds of cars usually run on electricity for the first 40 miles before they kick over to a gas-powered engine. Clark salutes the entrepreneurial spirit of these automakers who are experimenting with new kinds of cars. Some of you may remember when Clark previously spoke about a car company called Tesla that's building a $100,000 electric sports car. Their goal is to use proceeds from initial sales to fund further research into developing alt-fuel vehicles that will be much more affordable for everybody. This is exactly the kind of entrepreneurial spirit that will help us move away from the environmental and national security dangers that go along with gas engines.

There's one call that Clark has taken on the air about 60 times over the years, and he's never been able to answer it convincingly: Is it worth it to pay the extra bucks to buy a hybrid just to pay less in gas every week? Now Edmunds.com has done a cost analysis of some of the top hybrid models. Their research indicates how much longer it takes to get a return on investment if you buy the hybrid versions of any cars in the study. It's the Ford Escape that gives you the quickest payback -- owners will break even at around 3 years. The Honda Civic and the Mercury Mariner tie at No. 2. The Saturn Vue checks in at No. 3, allowing owners to break even in 4.8 years. Keep in mind that any hybrid offering return on investment in under five years is a smart buy. On the other end of the spectrum, the Toyota Highlander takes 11 years before you break even and the Camry will take you 12 years. And what about the Prius? Because there's no exact gas-engine equivalent, Edmunds looked at the Prius vs. Corolla. Turns out it will take you a whopping 13.6 years to get payback if you only drive your Prius 15,000 miles/year! So Toyota -- the greenest of all the automakers -- actually does not give you good payback on your hybrid-purchasing dollar. Clark advises people to only buy a Toyota hybrid if they're doing it because of deeply held environmental beliefs.

Clark continues to receive many questions about the used Honda Civic GX he just purchased. Typically, a new GX runs about $25,000 versus $17,500 for a standard Civic. But some folks have been wondering if the extra investment is worth it. One boon to buyers is that you receive a $4,000 federal tax credit when you purchase this no-pollution natural-gas vehicle. Meanwhile, operating costs are about $1.20 per "gallon," though you don't fill up with traditional liquid gas. Clark instead uses compressed natural gas, which is largely produced here in the United States. He'll report back and let you all know if his GX purchase proves to be crazy or not. Meanwhile, the government has issued new fuel economy numbers for automobiles at FuelEconomy.gov. The push to get new numbers really gained momentum when people bought the Toyota Prius and found their sticker numbers could be inflated by 30 percent. But all 2008 vehicles going forward will feature the true miles per gallon figures. Note that you get greater value for your buck when you go from a vehicle that has 15 mpg to one that has 25 mpg -- rather than going from 25 mpg to 35 mpg. It's all about ratios. So it may make sense to buy a car with good mpg versus great mpg. It's that initial leap in fuel economy that gets you the biggest bang for your buck.

In the latest installment of Clarkonomics, Clark discussed some predictions about the price of oil. The current price is about $83/barrel, while a gallon at wholesale costs an average of $2.08. Now Clark is hearing some predictions of prices hitting $100/barrel. Meanwhile, Forbes recently ran an article suggesting that oil will go down to $45/barrel -- rather than up to $100/barrel. The reason is that there's new supply coming out of the ground that will drive prices down. Another story Clark saw predicted $50/barrel. All this could, of course, change if we have another episode of world turmoil or terrorism. But the fact remains that we in America use way too much gasoline for our population numbers.

There are three ways to deal with our over-consumption: drive less, buy a more fuel efficient vehicle or develop more technology that will allow vehicles to transport us more efficiently. GM is hot on the heels of a plug-in hybrid, which uses practically no gasoline. You plug the car in overnight and then your first 40 miles of the day are generated from electricity. When you go over 40 miles, the vehicle automatically kicks over to gas. This system would work well because most people drive less than 40 miles a day. On a related note, Clark is upset that special interests have gotten tariffs on sugar. The sweet stuff can be used to produce the most efficient gas alternative known right now -- much more so than the corn ethanol some people are pursuing here. The injustice of the situation is that sugar is not a viable solution for U.S. fuel needs because of the ridiculous tariffs in place that protect special domestic business interests. Our energy needs go hand-in-hand with our national security. Isn't it time to start making smarter choices?

Do you remember when gas stations used to offer cheaper prices if you paid cash? Cash discounts at the pump are starting to make a comeback. This might seem like an odd thing, especially considering that people overwhelmingly fuel up using their credit cards nowadays. But the gas stations take a big hit on the credit card processing fees for every charge at the pump. These fees can be anywhere from several cents per gallon to a dime per gallon. So some stations now offer cash-paying customers anywhere from a nickel to 15 cents off per gallon to encourage cash transactions. The Los Angeles Times reports that cash discounts on the West Coast are spreading like wildfire. But this trend also raises a dilemma for stations. If people don't pre-pay via credit card, there's always the risk that they'll fill up and drive off without paying at all. Meanwhile, if you have to pay cash upfront, the stations may have to hire more staff or worry about losing business because of long lines at the pump. There's a balance that has to be struck. QuikTrip is trying to strike that balance by offering a pre-paid cash card. You have to register your personal info at the gas station -- to discourage you from driving off -- and then you're issued a card that lets you fuel up.

Clark's daughter has his Honda Civic hybrid at school and she's happy to be getting about 45 miles/gallon. It seems that hybrids with good fuel economy are now selling like gangbusters. Remember back just a few years ago when this wasn't the case? Ford had to offer incentives just to move their Escape hybrids. Now The Washington Post reports the Escape is so hot that dealers can't keep up with the demand. In fact, the vehicles are selling for thousands of dollars above the list price because people want to save money on gas. Psychologically it may feel OK to pay a little more now with the promise of bigger savings down the road, but Clark thinks you should really crunch the numbers before you make this kind of purchase. Buying with your emotions isn't advisable, nor is overpaying for new technology. Take the rational approach by doing some smart comparative auto shopping on a website like Edmunds.com. The same thinking applies when deciding whether to dump your current gas-guzzling ride for a new and more fuel-efficient vehicle. Look for a similarly depreciated vehicle and try to do a trade where you get an older set of wheels that's more fuel-efficient than your current car.

Battery powered bikes are all the rage and they're great for commuters who want to save money. As some of you listeners may know, Clark often rides a scooter to the studio. He gets more than 70 miles to the gallon and goes around 45 miles per hour. But the scooter still runs on regular gas, which can be expensive. By comparison, electric bikes go 20 miles per hour and they retail for around $700-$800 and up. They're very silent, except for the whirring of the electric motor, and go 30-40 miles between charges. They're nearly pollution free, but you are exposed to the elements. Still, they save a ton of money and are a viable option if you have a commute that's less than 10 miles. Clark admits that the electric bike trumps his scooter for savings. On a related note, Clark wants to warn his listeners that gas-additive scams are back full force. These scams involve people trying to sell you pills and potions for your fuel tank that promise to stretch your gas by 30 percent. The claims are bogus. It is only natural that as we pay more for gas we want to believe there's a way to recoup the extra expenditure. But don't make the bad situation of paying for more expensive gas worse by losing money on these gas-additive ploys.

The Chinese have come into almost every American market except for cars—until now! Starting in 2008, Chinese cars will be sold under the Chrysler name in the U.S. Mainland China has a goal to account for 10% of cars sold in the world. But quality is a huge issue with Chinese manufacturing. Hyundai started off with terrible products at first; China might too! China makes terrible toys, dog food, tires, and much more, because there aren't sufficient checks and balances in the manufacturing system. So it will be a challenge for them to get the quality right. But they'd better, because the quality of cars these days is top drawer. Cars are better, safer and more reliable than they have ever been, so it's a great time to buy.

Ford is working with the power companies in California for plug-in hybrids, which are electric-powered for the first 40 miles, after which the car switches to gas. These are awesome! They cost only 2 cents per mile, only a fraction of what you pay per mile for gas! And it's a great way to reduce our dependence on foreign oil.

While the big oil companies are the ones ripping us off, it's your local gas station that gets the heat from consumers. But did you know that gas stations actually like it when the price of gas is lower? When prices get too high, people tend to buy less of the expensive convenience store goods like beer, cigarettes and lottery tickets that are profit boosters for gas stations.

No matter how you look at it, fuel is just one cost associated with a car. If you were paying to ride in your car the same way you pay to ride in a taxi, you'd be spending some 50 cents a mile. But what if you could drive for as little as two cents a mile? There are a number of smaller companies such as Kurrent making electric cars offering that kind of fuel economy. Kurrent -- which was bankrolled by ad-agency people using their retirement funds -- makes an electric vehicle that will go up to 35 miles an hour with a 100-mile range on flat ground. You can charge the vehicle in an ordinary household outlet. And though it is very small, it's built strong enough to be substantial in a crash. They're making up to 10 of these cars a day. The primary market is in large retirement communities in Florida, California and the mountain states. But if you think you're too cool for a grandpa-mobile, just ponder these economics: In addition to running for just two pennies a mile, a Kurrent costs as little as $10,000 to buy. Now that's a Clark Car if ever there was one! Clark has been fixated on great fuel economy since the oil shortages of the '70s. As he says, we are the strongest nation on Earth, but we won't always be if continue to give our money to oil-producing nations that want to destroy us. We must be innovative as Americans, and going electric with your car is one way to do it.

Clark is always investigating the push to go green in the auto industry. Not long ago he spoke about the Air Car, a vehicle that runs on compressed air instead of gasoline. Now he recently heard that McDonald's franchises in England are planning to run all their delivery trucks on recycled fryer grease. Previously McDonald's had to pay to dispose of the grease, but now with some processing equipment they'll be able to save that money and leave the world of diesel fuel behind forever.

Closer to home, Clark is still weighing the idea of purchasing a Honda Civic that runs entirely on compressed natural gas. The benefits include that he won't have to give one more penny to foreign oil-producing nations who want to destroy us, and the vehicle won't cause any pollution. Honda could roll out 40,000 of these natural-gas cars a year right now. But the demand for them isn't really there yet. Partly that's because owners would have to install what are called "Phill" refueling stations at home. While such a move might seem a little cumbersome for the average homeowner, the price of the investment is certainly sweet. How does paying $1.20/gallon sound in an age when people regularly pay upwards of $3/gallon?

The market for gas-guzzling vehicles is awful! Car companies like Chrysler and GM are trying 0% financing with rebates to try and pull consumers back in. You can get incentives on some vehicles, others will give you 0% financing, and some deals will give you both! Each company has a “summer drive,” so that they will advertise better deals for SUVs and trucks to make up for their high gas consumption. However, if you're thinking of buying an SUV but don't plan to own it for the life of the car, keep in mind that it is very tough right now to get rid of a used SUV. Practicality is now beating out style.

A few years ago a French inventor came up with the technology for an automobile that runs on compressed air! It generates no pollution at all, costs about $2 per fill up, runs 125 miles on a tank, and can go up to 70 mph. It looks like a micro-mini van, with a sliding door. Clark loves the idea. But so far, even though they're bringing 6000 of them to India, no one wants to bring them to the U.S. So until they're available here, Clark is considering getting a "GX", a car from Honda that runs on natural gas, the kind of gas that heats your home. It creates almost no pollution, costs about $1.20 a gallon, and about 97% of the gas supply would be from domestic sources. Honda is only bringing about 1200 in per year (to New York and California only) to see if there's a market for them. To fill up, you install your own gas station at your house and plug into it overnight. On road trips you'd have to do your homework to find out where natural gas filling stations would be. But Clark is really excited about these cars, and would even consider breaking his own rule of avoiding costly "new" technology in order to be an early adopter.

Actual demand for gasoline has gone up over the past year even though the price has gone up substantially. In America, more than almost anywhere else, we have really long commutes. This means that most of our driving is inelastic, which means we basically have to drive and we don’t often drive for leisure. Small cars and 4 cylinder engine cars are being bought in droves these days. BMW is even bringing their one series car over from Europe to the US as well. Clark rented a Chevy Aveo in Washington D.C. and loved getting 37 miles to the gallon in it as well as the ease of parking in the downtown area.

About a year and a half ago, after Hurricane Katrina and the big run up of gas prices, Clark proposed an idea: discourage people from buying gas-guzzling vehicles and encourage them to buy fuel efficient models. He suggested taking vehicles that got bad fuel economy (less than 20 miles per gallon) and hit them with a $5000 gas-guzzler tax. If you buy a vehicle that gets between 20-29 mpg there would be no tax, and if you buy one that gets over 30 mpg, you’d get a $5000 rebate from the government. Some people were furious with that position. But now, the State of California is considering doing this. (The California tax would be $2500 for guzzlers, a $2500 rebate for efficient vehicles, and no tax for autos that fall in between.) Americans use far more fuel, electricity and energy than other countries of equal wealth. He believes that we hurt our national security and our national defense needs when we remain dependent on foreign sources that hate our guts. That’s why in Clark’s opinion encouraging people to use less energy of all kinds is a big deal.

Have you ever gotten socked by a rental car company because you forgot to fill up the gas tank before returning it. The mark-up on that gas is huge. And, you should always fill up yourself. But, when compared to other countries, gas in the U.S. is extra cheap. The average price per gallon in England is $8.37. In Holland it’s $7.50 while in Germany it’s about $6.50. The average price these days in America is about 2.75. And, that may drop in the next few weeks – a time of year when prices are usually on the rise. The typical cycle in a year is prices rise in Spring and drop around the time of July 4. Speaking of July 4, it’s on a Wednesday. So, there will be great airfare offers during that week. Remember to check out fares if you’re thinking of taking a vacation around Independence Day.

When you buy a car, you’ve probably seen a sticker in the window showing the fuel economy that car will get. But did you know that number is not accurate. In order to benefit Detroit automakers, the federal government has inflated the numbers to make cars seem more efficient than they actually are. The numbers were inflated by about 20 percent. The good news is that things have been corrected in the system. If you buy a 2008 car, you’ll get the correct fuel economy. If you’re buying a 2007 model or earlier, you’ll get the inaccurate rating. To get the correct rating on your own, visit fueleconomy.gov. Gasoline prices are still fairly reasonable in the U.S., especially when you consider what people pay in Europe and Asia. Chrysler may not make it. It was out of necessity for those countries to make more fuel efficient cars. But the problem for American automakers is that people now want more fuel efficient cars. Chrysler is in big trouble, and Ford and GM are teetering on the brink. At any point, the Detroit automakers could go bankrupt. So, we need to do something different to turn our auto industry around.

In states with low gasoline taxes, you’re going to see prices drop into the $1 range. The price of a gallon of unleaded gasoline at wholesale is $1.45 right now. So, depending on where you live and the taxes charged in your state, you could be paying a lot less at the pump. Keep in mind that some states charge very little in taxes while others charge a huge amount, and the station usually posts that information. What about natural gas? The cost at wholesale is about 44 cents a therm. So, at retail, states that regulate the natural gas market, the price will go down significantly. In states that have deregulated the system, it’ll be up to the various companies what to charge you. Economists are speculating that the price will be about 75 cents a therm at retail, which is great. Who knows how long it will last? But for now, this is great news for winter.

Gas station operators are putting up new signs to try and trick you into paying more for gas, according to the Boston Globe. Stations are branding regular gas as “economy” gas and labeling mid-grade gas as “regular.” So you pull into the pump and may pay an extra 15 or 20 cents a gallon for no reason at all. It’s slimy and underhanded, and it’s going on in the Northeast and in New England. You need to pay attention to the octane level only. So, if you see economy gas, read the octane level. It may be the same number as regular gas. Just don’t pay anymore. And Clark wants to remind you that almost no car out there needs premium gas. Putting regular gas in most cars – including Porsche – is just fine. Don’t spend more than you need to.

With the price of gasoline going higher and higher, crooks are capitalizing on people’s fear and insecurity. Pills, potions and magnets are a couple of the ploys floating around out there. But, the Federal Trade Commission has said absolutely that they don’t work. One company that made a device it claimed would increase fuel efficiency by 25 percent has been fined more than $4 million. FuelMax, Super FuelMax and Fuel Saver Pro were few of the names under which it was sold. People may think spending $100 on a product can’t hurt. But it sure can. Don’t buy into these scams.

Mercedes is going to bring the Smart Car to the States! Clark has been waiting for this day for years and it’s finally happening. He’s had a longtime fascination with the Smart Car because of its size and efficiency. It’s half the size of a normal compact car but it averages 60 miles per gallon. Also, you might think because of its size the Smart Car would be a death trap on wheels. But they are built on a steel cage and made as safe as possible. As a country, we have a challenge in terms of what we drive and how much fuel we use. Americans make up about 4 percent of the world’s population, but we use a quarter of the world’s energy. We need to start driving smarter cars to reduce that energy use and, in turn, our dependence on fuel from countries that want to harm us. People can get Smart Cars right now from Zap Cars. But they’ll probably be available at dealerships in late 2006. Look for them then.

Clark was at political event recently and one of the topics that kept coming up was energy. People kept mentioning the need for more oil refineries and creating more supply. That’s true, but there are two more pieces of the puzzle. We make up 4 percent of the world population, but we use about a quarter of its oil. So, we need alternative forms of energy and we need to decrease our demand. Some car companies are working on this effort. Honda, for example, is planning to introduce several vehicles that get 50 miles to the gallon or more. That’s in town! Honda is also going to introduce some more diesel cars that burn much cleaner fuel. We are in the early innings of a multi-inning game here. It will take decades to get where we need to be, but the smaller gains can happen quickly. Three years from now there will be a lot more technologies in use, including plug-in hybrids. It gets you an average fuel economy of more than 100 miles per gallon because it’s run partly on electricity and partly on gas. You charge the electric battery and get 40 to 60 miles on electricity when you “unplug” the car. Then the gas engine kicks in. Most people drive a moderate number of miles every day, so the car never needs gasoline. It’s ingenious!

Clark talked recently about how there is no magic potion or pill that will help you get better fuel economy, and he has an example to share. A reporter at the Chicago Tribune tracked down one company that claims you’ll get 35 percent better fuel economy and another that improves it by19 percent by “lubricating the fuel.” These are complete hoaxes and, in truth, are just pyramid schemes. You must buy into these companies and you make money when other people sign up and get other people to buy the pills. Sound like a ponzi scheme to you? The amazing part is that thousands of people have already bought in. Most people will lose their shirts in this scheme. Those who don’t are making ill gotten gains.

Have you heard of the magic pills that you put in your gas tank to boost your fuel economy? The ad may have come through in an e-mail or a late night infomercial like so many other claims to lower your gas prices. None of them work! So, how do you improve the fuel economy of your vehicle? Well, there are the little things. Slowing down, avoiding starting and stopping suddenly, and taking alternative means of transportation. But the No. 1 thing you can do is get a more fuel efficient car. Now, that doesn’t mean you should dump your fairly new car and buy a $14,000 hybrid. You will never make the money back. But when your car is on the fritz, buy something that will give you really good fuel economy. You’ll be doing your part and saving a bunch on gas.

People are paying $7 a gallon for gasoline right now in England. In Europe, people are paying more than $5 almost everywhere. They’re used to it over there by now. Also, we drive much further distances here in the States. People have much longer commutes and go longer distances in general, so a $3 gallon of gas hits people much harder. Clark will not be a slave to high gas prices however. He has bought another scooter. He loves riding it, but he had a funny start to the whole scooter experience when he ran out of gas about 2 miles from his home the other day. But think about how much he’ll save commuting to work on a scooter. Some people obsess over the price of gas. But others aren’t that sensitive to it because it’s still such a small part of our annual expenses at about three percent. This year it will probably be about five percent because prices have gone up. We’ll keep you posted.

A caller named Robert proposed to Clark that we should not buy gasoline on July 4 to send a message. Hear Clark's response and his other thoughts on foreign oil sources. Remember to disable your pop-up blocker by holding the "Control" key when you click on the link.

The price of gasoline went up 35 cents in just the last month. Where's that money going and why? Get Clark's tips on how to keep more of it in YOUR pocket. Disable your pop-up blocker first!

A few weeks ago, Clark brought up the topic of raising taxes on gas to reduce our dependence on foreign oil and was voted down sorely in our recent poll. Evidently people aren’t ready to pay more for gas no matter what. Another idea came up in our meeting today that has Clark’s interest piqued and he wants to know what you think. In Communist China, the government is going to offer a tax rebate to people who drive smaller cars and is going to hike taxes on drivers with large cars. Clark likes this idea and would like to see it happen in the U.S. What do you think? Tell us in our latest poll.

Clark’s most recent poll was about school choice and its various forms. We asked users if they were in favor of specific forms of school choice, including vouchers, charter schools and public school choice. Clark’s users seem to defy the norm, with about 85 percent of them in favor of some type of choice. Vouchers received the highest count – just under 40 percent. It doesn’t mean that anyone is right or wrong, but Clark is in favor of school choice. Thanks for voting.

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Our new poll involves increasing the price of the gas in an effort to reduce our dependence on foreign oil sources and to help the environment. America needs to develop more sources of energy, and to do that we need funds. He’s not the only one. The head of Auto Nation wants to raise the price of gas 10 cents a year for the next 10 years. If Clark had his way, he would use the money from higher gas prices to reduce the amount of social security tax we pay. Then, consumers would have more money in their paychecks and hopefully would use that money to buy more fuel efficient cars. What do you think? Tell us in our most recent poll.

Prices are dropping at the pumps to below the $2 mark! In fact, we’re in better shape than we were in spring of last year. So, what are the costs? The cost of gasoline at wholesale is $1.54 a gallon. But you must add in taxes and dealer mark-ups to get the actual price at the pump. So, what about natural gas prices? Roughly 51 percent of American homes use natural gas. At wholesale, natural gas peaked at about $1.50 per therm. These days it’s moving into the 60 cent range. There is a massive supply right now, so you’re going to pay less to heat your home as well. Long-term is a different story, but for now it's good news.

About six months ago, Clark talked about the bogus EPA ratings that appear on cars that are for sale. For example, the Toyota Prius is touted as getting 60 miles to the gallon. In actuality, it gets about 40 miles per gallon. This issue has angered a lot of drivers, especially with rising gas prices. The overestimations happened because the Feds were using a 30-year-old test. It would be so much more efficient and helpful to people if the true figure were published. People have a right to know the truth. Well, the Feds are taking a step in that direction. The Feds are going to use updated technology to test cars correctly starting next year, so keep an eye out for it.

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In other fuel and hybrid news, Toyota is going to install a button in its Lexus models that will allow people to use either less fuel or go faster. The company caught flack recently because the new Lexus models were going extra fast but getting horrible mileage, and owners got upset.

Clark has good news coming from the gas pump. The cost of gasoline at wholesale has dropped to $1.58 a gallon. We’re not seeing that at the pumps just yet, but it’s a good sign. In the past two weeks, gas prices at retail have dropped by one of the largest amounts in a two-week period. Prices in some areas of the country may drop below $2 a gallon, for instance. The bad news is that there are a number of reasons why this drop may be temporary. The Europeans shipped us emergency gas when the hurricanes hit, and the President drew from reserves that we don’t normally use. The government also temporarily waived some of the stringent guidelines at the state level. All these things dramatically increased the supply of gas in a short time and caused prices to go down. There is more bad news if you heat your home with natural gas. Prices are going to remain high in that industry. That is one of the reasons why you’re going to have a tough time this winter. But gasoline is going to get cheaper in the foreseeable future.

Clark is going to step out on a limb and predict that gas prices are going to drop like a rock. Gas prices have been incredibly high at wholesale and retail. The price at wholesale has been as high as $2.80 a gallon, but that has dropped to $1.80. That dollar drop means that the retail price will go down, stubbornly but surely. Katrina and then Rita definitely had an effect on the price of gas. But, barring some other unforeseen disaster, you’re going to see much lower prices at the pumps. Prices take a while to work through the system. But it will cost significantly less to fill up your vehicle by next spring.

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In other fuel news, a super car is coming on the market that will get up to 180 miles per gallon. Yes, 180 mpg. A company called “Electric Control Systems Engineering” recently modified the Toyota Prius, which has both a gas and an electric engine. The company made it possible to charge the electric engine overnight, so the car runs mostly on electricity. When the battery power runs out, the gas engine kicks in. So, the fuel economy goes from a normal 50 mpg to between 150 and 180 mpg. When Clark talked about this last year, Honda was very skeptical about doing this. But now the company is considering following the other company’s lead.

Marketers in all kinds of industries are using free gasoline as a lure to get you in their stores. Mitsubishi, for example, is offering up to $2,500 in free gas if you buy one of their vehicles. One bank offered $25 in gas for opening an account, and people signed up in droves. They had to end the promotion, in fact. A record company also offered free gas: either $50 for joining or a grand prize of a year’s worth to sign up. The company generated about 50,000 responses. So, clearly gas is making people feel out of control these days. But, you do have control if you set you mind to it. More people are doing what’s called “vehicle substitution,” where they take the more fuel efficient car instead of the gas guzzler when taking trips. Bicycle and scooter sales have skyrocketed, as well. People are riding bikes or scooters into work to save money. So, you can make decisions now that will impact your life. Even better news is that natural gas prices have dropped about 15 percent since the hurricanes hit. Prices will probably continue to drop, but it’s going to be a tough winter. The Wall Street Journal recently said energy prices are in a bubble right now, but it will eventually burst. We are entering a cycle of high prices, especially when it comes to heating our homes. But it won’t last forever. So, for now do what you can. Caulk around your windows, use electric heaters instead of natural gas where possible and insulate your house. This is a year when you’ll have to be innovative.

Rising fuel prices are creating anger all over the world. In Indonesia and Europe, for example, citizens have been revolting and rioting. In Paris, a gallon of gas is just under $7. Canadians are paying as much as $4.10 a gallon. So, it’s not just people in America who are feeling the pinch. It’s a rough time for everyone. So, is there a silver lining? Well, the mark-up on a barrel of oil is huge right now. That means it is bound to go back down. Yes, we are in an up cycle right now and it will continue that way for awhile longer. But Clark believes that – barring some catastrophic event – gas prices will eventually move down. It’s part of human nature to feel helpless and angry when something like this happens. And it seems as though nothing will change. But Clark is predicting significantly lower gas prices by February 2006. If he’s wrong, he’ll take his licks. But this won’t be permanent bad news.

Scooters are all the go these days. Some people think they don’t look suave enough or are not safe or reliable. But in most countries – other than the U.S., Canada and Australia – people ride scooters all the time. Clark has wanted a scooter for a while and, with gas prices moving higher, his desire is hitting a fever pitch. He asked his wife, Lane, and at first it was a flat-out no. After some more discussion, she agreed as long as she could dress him two days a week and he took out more life insurance. So, he’s ordered a scooter for $869 online and it’s on its way. Clark asked the staff what they think about him riding a scooter and most people thought it was a bad idea. Kimberly, who has ridden a scooter for four years, said she thought Clark would be fine, despite his tendency to get distracted. We’ll see how he does.

We are at an all time high with credit card delinquencies, according to the American Banking Association. About five percent of people are past due on credit cards. Economists suspect that it has to do in part with gas prices. People have to put fuel in their cars to get to work and other places, so they are neglecting their credit card bills. It’s a rough time in terms of energy costs. Did you hear about the man who was caught stealing gas at a filling station because he fell asleep while filling up a 55-gallon tank? The station owner found the man sleeping in his van when he opened the store. The owner called the police and the man was hauled off to jail. People are resorting to all sorts of desperate measures because gas prices are so high right now. Prices will go down. Just be smart with your money.

What is going on with gas prices? People in Louisiana have had some follow up trouble due to Hurricane Rita’s wrath, but most areas of the country are going to be okay. If you’ve heard any of the news stories, the prices of gasoline have moderated since Rita hit. Most refineries are back online, and the others should be starting back up later this week. As far as gas prices go, wholesale is at $2.08 today. So, prices will remain high for awhile. Unfortunately, gas prices tend to soar in times of turmoil and fall very slowly, like a feather. It’s called the “rockets and feathers” theory. The good news is there is a lot of competition in the retail gas market. So, you have lots of options.

It’s happening again. Hurricane Rita hasn’t even hit land yet and people are already panicking about being able to gas. The hurricane will most likely hit Texas, another oil area of the country. Some gas stations are claiming there is already a shortage, so gas prices are going up and there are spot shortages. Fear is driving this train, just as it did after Hurricane Katrina. And when consumers panic and run out to fill up their tanks, the situation gets worse. Be cautious, but don’t panic. We have the ability to generate a supply when there is a shortage. So, take a breath. If you see a line at a gas station, don’t get in that line. Just go somewhere else. There will be gas.

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Some good news about this game is that Ford has decided to add many more hybrid vehicles in the future. A quarter of a million to be exact. So be on the lookout. Clark hopes more American carmakers catch a clue and help with our country’s energy crisis.

Gas prices in the U.S. continue to drop. We’re now down to about $1.85 a gallon at wholesale and dropping down into the $2 range at the gas pump. Industry analysts predict prices will drop even further. But, we really don’t have a lot to complain about when you consider what people are paying for gas in other countries. Gasoline in London is $7 a gallon. In Germany and France, it’s the same, and in Japan it’s about $4.35. We have long enjoyed the cheapest gas prices in the world and the outlook is good for the future. So, think about the big picture before you allow yourself to get upset at the pumps. You can also control how much gas you use by altering your travel patterns and, when the time is right, buying a more economical car.

Who is going to do more to quell America’s weakening position in the world? Does the federal government have a plan, or is there a company out there with a plan? Nope. Companies in other countries are more attuned to the problem, however, and are doing what they can to reduce their dependence on foreign oil sources. Toyota, for instance, plans on one-quarter of its vehicles being built with hybrid engines over the next four years. The company is making money selling hybrids and it wants to do something about the energy crisis. What are we doing here in the States? Nothing. In fact, automakers are giving each other high fives because they have convinced Congress to avoid establishing any kinds of regulations on American cars. Honda is also doing what it can to make cars more fuel efficient. Clark thinks GM, Ford and Chrysler need to wake up and come up with ways creative ways to keep our resources here in the States. We have no choice. We have to become more energy efficient if we want to stay alive in the marketplace.

Of all things we spend money on, people feel that gasoline is the most annoying and expensive these days. But would you believe that bottled water costs more than gas per gallon? We think nothing of throwing away our hard-earned money on overpriced bottled water. If you are unhappy about what you’re paying for gas, think about all the other purchases you make. The price of gas is taking a bite out of our wallets, no question. But it’s something we need. There are other things you can give up in order to help balance your budget. Bottled water and cigarettes are two very unnecessary things.

Gas prices are out of control these days. A barrel of oil at wholesale is just under $65, and that figure translates into what we’re paying for gas. Typically, gas prices fluctuate seasonally. Gas prices usually peak sometime between Memorial Day and Labor Day, and then they start to decline. But not this year. There is so much instability regarding our supply of oil and the reliability of the countries from which we get it. As a result, there is a $15 to $20 “uncertainty premium” that we’re paying. It’s even worse for people who pay for premium gas at the pump. Very few cars actually need premium gasoline, even if it says it on the inside of your gas cap. Even Porsche has admitted it doesn’t need premium gas. So, unless you have a super charger, you can probably use regular gas. It doesn’t hurt the engine or the car at all.

Gas prices are moving up and it doesn’t seem to be stopping anytime soon. Do you feel like a sitting duck? There are things you can do, but you have to be a bit of a free thinker. If you have a diesel car, or can convert your car to a diesel, it will run on restaurant grease, for example. Another man, who recently sent pictures to Clark, runs his diesel Volkswagen Beetle on vegetable oil. Cars in Brazil are “multi-fuel” vehicles, meaning they can run on sugar cane and other types of fuel. The country made it a national policy to break away from foreign oil sources, and it’s working. The powers-that-be in the U.S. are trying to block the use of sugar as a fuel source and luckily it hasn’t happened yet. But they’ll continue to try. Our country should be in favor of any initiatives that reduce our dependence on foreign oil. So Clark doesn’t get it. In the meantime, consider converting your car if you really want to save money.

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In other car news, have you heard of “plug-in hybrids?” These cars can get up to 250 miles per gallon. So, some people are converting their regular hybrids to be plug-in hybrids, which allows them to run solely on electricity for quite a long time. All this news may frustrate you, but it’s becoming a reality. The answer is not to dig for more oil, but to come up with new ways to run our vehicles.

The price of oil is now $60 a barrel at wholesale and it seems to keep rising. As a country, we need to become stronger in this arena instead of depending on foreign sources of oil. And while Clark shakes his head at our current situation, Honda is already coming up with ways to combat high gas and oil prices. The company has developed a new engine called the IV-TEC (Intelligent Variable Valve Timing and Electronic Control System), which improves the fuel economy of any vehicle. It should get about 30 miles to the gallon. The company is also coming up with a hybrid engine that gets more than 60 miles per gallon. So, while we’re twiddling our thumbs in the States, Toyota and Honda continue to make history in the automotive industry. We need to improve the fuel economy of our vehicles if we want to continue as the world’s most powerful country.

It’s been a tough week for President George Bush on the subject of energy. The oil market that was so good to him in his private life is now plaguing him during his political life. Basically, Americans want him to do something about to cost of gas these days, and it’s curtailing public confidence in his presidency. In reality, there is not much he can do in terms of persuading our foreign sources. So, we need to either reduce demand, increase production or a combination of the two. Most Americans have no clue how much energy we use as a nation or how that affects our economy. We represent about 4 percent of the world’s population, yet we use about one-third of its energy. Bush has talked recently about increasing our supply of energy and the use of LNG, or liquefied natural gas. It’s a very plentiful source, but people are concerned about the terrorist risks involved. Bush has also talked about using nuclear energy as a power source, which also scares people. But we need to have a more open mind about these sources; they can be very safe. Right now, we use coal, which causes air pollution and numerous deadly diseases. We have plenty of coal, but utility companies need a different attitude regarding how it’s used. Clark also thinks we need government mandates that force us to use energy more efficiently. If we don’t increase our efficiency, we put ourselves at risk and become weaker as a country.

The average price of a gallon of gas is about $2.13 a gallon right now, and the cheapest is about $1.75. This is serious stuff, and people are concerned about what to do. One woman Clark talked with recently is running her Mercedes diesel on restaurant grease. It’s something that is catching on, no matter how strange it sounds. Another option is something called “bioheat,” it’s a combination of soybeans and canola oil. Bioheat is spreading across New England because it’s great for heating homes. So, there are things you can do to save money and keep our fuel resources closer to home. If we can to continue to be a world power, America needs to stop importing fuel from foreign sources.

We’re getting pinched again by rising gasoline prices, but it’s not as bad as it was in the ‘70s. If you were driving then, there was a significant change in lifestyle as a result of gas prices. Still, if you want to make some changes to put money back in your pocket, there is something you can do. Only one-third of people buy gas on price. Most people see they are running low and pull over wherever they are. But if you pay attention to your tank, you can pick your locations. Clark goes to the gas stations with the best prices as soon as his tank gets to a quarter of a tank. You can go to gaspricewatch.com to find the best prices in your area.

Anyone who has been to the pump lately knows that we’re paying lots of money for gasoline. The average price around the country is $1.79 a gallon. So, is there anything you can do to cut back on gas costs if you have a gas-guzzler? According to New Scientist, Mercedes has developed a technology that can reduce your fuel consumption by about 10 to 12 percent. How does it work? It’s all about driving better. Basically, if you “jack rabbit” start or if you are constantly stepping on the gas and then on the break, you are using a lot more gas than if you kept steady pressure on the accelerator. With this new technology, the accelerator pedal will vibrate and make you change the way you drive. So, this device does the equivalent of what cruise control does by training each individual to drive more smoothly. It will be interesting to see if people take to this fancy pedal or dislike it. The other project Mercedes is working on is “Vehicle Detection Radar Systems.” Car manufacturers have tried all kinds of safety improvements for cars in an effort to prevent injury when car accidents occur. Now companies are using radar in cars. The idea is that instead of preventing injury and death in an accident, the radar prevents them from happening in the first place. Another way to spend less on gas is to avoid buying SUVs all together. Mini-vans may not be hip, but they are much more economical than SUVs.