So oil finally hit a record $80 today after the government reported a surprisingly large drop in crude oil inventories and accompanying declines in gasoline supplies and refinery activity.

Kind of makes OPEC's recent decision to boost production by 500,000 barrels nothing short of laughable.

The fact is, there's a lot of speculative buying right now. And today's news that a tropical depression in the Atlantic could turn into a hurricane and hit critical Gulf oil and gas infrastructure is just adding fuel to the fire.

Of course, we couldn't be happier, as these are the very issues that further validate the potential of alternative energy stocks. Especially in the transport sector.

In fact, Innovest Strategic Value Advisors released its latest report today on the global auto industry which featured a 5-year auto market outlook.

The market scenario envisions $6 gas prices in the U.S. and tightening fuel economy rules in the US, EU, Japan and China.

According to the report's lead author, Senior Analyst, Dan Moran...

"The end of cheap gasoline creates a game-changing challenge to the auto industry that will realign profit and risk opportunities over the next decade."

I love it!!!

Though the best part of the report is where Toyota and Honda earn high ratings for being ahead of the competition on hybrids and highly-efficient engines, while Ford was downgraded because of the company's "continued emphasis on trucks and heavy vehicles and its big bets on biofuels."

Moran went on to say...

"Investing in biofuel engines is an inexpensive way to sound green while passing up opportunities to invest in true fuel efficiency improvements. Biofuel-capable engines are attractive for US automakers since they exploit a CAFE loophole to inflate fleet mileage figures, but they don't offer better fuel economy and therefore won't help sell more cars to consumers sensitive to fuel prices. R&D money is more wisely spent on almost any other powertrain technology"

While we here at Green Chip do believe there are still investment opportunities in cellulosic ethanol and biodiesel, the bottom line is that over the long-term, it's the hybrid and plug-in hybrid vehicles that will deliver what the consumer wants. And that's what will continue to dictate success and failure for automakers.

We've been seeing it over the past few years with Toyota and its Prius, just as we've been seeing it with Ford and its inability to evolve and save itself.

Of course, anything can happen over the next few years. But one thing's for sure...whether its battery technology for hybrid and hybrid-electric vehicles or drivetrains and electric components for hybrid and hybrid-electric vehicles, there will continue to be opportunities for us.

In fact, before the end of the year, I'll be recommending a company that's taking the lead in supplying some of the most disruptive advanced battery technology in the marketplace. If you're already a Green Chip Stocks member, you'll be receiving my full report in your e-mail.

If you're not a member, but would like access to this next recommendation, click here now.

Until next time...

Jeff