That's not to say we're not going to require a massive amount of oil to power our economy over the next few decades. Continental Resources
If you want to invest in the transportation trends of the future, you can play it a few ways.
You can focus on biofuels, which are going to account for most of the growth in liquid fuel supply going forward. That would suggest an investigation of bulletproof biofuel stock Green Plains Renewable Energy, or perhaps Valero Energy
Alternately, you may, like T. Boone Pickens, see a bright future for natural gas as a bridge fuel to the future. Some interpret Exxon's purchase of XTO Energy
The House of Representatives last week voted to extend tax credits for natural gas-based vehicle fuels, but the NAT GAS Act has yet to come to the floor. I think that natural gas has a decent shot at becoming a legislative favorite, but it's not a lock. Clean Energy Fuels
Aside from liquid fuels, there's the growing wave of hybrid and plug-in hybrid electric vehicles. Warren Buffett's cast his vote here with a winning investment in BYD, which this week had to rebuff rumors that its Chinese sales figures are inflated. BYD is looking to bring its electric cars to the U.S. late next year. Meanwhile, battery makers A123
I've already made one ill-advised investment in this space, with a biodiesel player blowing up in my face. I may be overly cautious as a result, but I'm not jumping into any additional alternative transportation names just yet. I'd love to hear your best ideas, though. Please share one in the comments section below.
Fool contributor Toby Shute doesn't have a position in any company mentioned. Check out his CAPS profile or follow his articles using Twitter or RSS. The Motley Fool owns shares of XTO Energy and has a disclosure policy.