My local "drug" dealer, also known as Sonny's Sunoco, as regular readers may recall, likes to play roulette with prices. It's not unusual for me to see the numbers on his display board switch three or four times a day, apparently depending upon how his personal trading is going on the spot market.

So I was surprised to see the figures hold steady, this weekend, at $3.79 a gallon of regular, more than 40 cents below the peak price he was demanding of us petrol junkies just a month before. All across the country, the AAA reports, prices are falling, and are now averaging barely $4 a gallon.

(Of course, who would have thought we'd breathe a collective sigh of relief when fuel prices were "only" $4?)

Why the sudden dip? No, it's not because the Saudis are suddenly feeling guilty, nor is it the result of a sudden sense of social responsibility in the ExxonMobil boardroom. It's apparently nothing more than a sign that Adam Smith was right. The invisible hand of the market seems to be working.

As fuel prices soared, in recent months, Americans began cutting back on their driving, whether by carpooling, cutting out unnecessary trips, switching to more fuel-efficient vehicles, or canceling their cross-country vacations. Whatever the reason, the nation sucked down 2.4 percent less fuel during the previous four weeks than it did during the same period in 2007. And that's helped drive down the price of crude by more than $20 a barrel since its July 3 peak of $145.31 - to a Friday close of $123.26.

Of course, that seemingly direct link between fuel consumption and fuel prices could work against us, if motorists wind up driving more now that fuel is, ahem, affordable again. Relatively, anyway. What was $72, on average, in 2007, is still expected to be $127 a barrel in 2008, and $133 next year, according to the energy Information Administration.

But unlike years past, when the laws of supply and demand were pretty much directly impacted by what happens on U.S. shores, the situation has changed dramatically in recent years, as more and more of the emerging world discovers the automobile.

China has become the world's third-largest motor vehicle market, behind only Japan and the U.S., and with millions more cars and trucks taking to the road each year, its appetite for petroleum has soared. The same thing is happening in India, Russia, and, well, much of the world. But while usage is soaring, supply has held relatively steady.

The situation is compounded, warns an article in today's New York Times, by the fact that consumers in many of these emerging markets aren't actually feeling the real pain of petroleum's record run-up. Indonesia, for example, is spending 4 percent of its entire economic output in the form of fuel subsidies, helping maintain gasoline prices of around $2.30 a gallon. In Malaysia, the subsidies amount to 7.5 percent of economic output.

China is spending about $40 billion to subsidize fuel costs, though it did allow gasoline prices to rise significantly on June 21. As the Times notes, that immediately drove down world oil prices by a whopping $4 a barrel. There's the possibility of still further increases in Chinese gasoline prices after the upcoming Olympics. Observers expect the government to wait rather than risk protests that could be picked up by the world's media, descending on Beijing.

While subsidies might ease the burden on third-world consumers, the problem is that low prices do the same thing, in places like China and India, that cheap gas did in America, it encourages consumption and limits the viability of conservation. And with little growth in global petroleum supplies, the fast-rising demand from these markets will continue to push up the cost of crude, even if Americans maintain their newfound focus on fuel efficiency.

When it comes to fuel economy, the little things matter, sometimes quite a lot, as some of the industry experts I gathered together for a "green car" forum yesterday made clear.

The occasion was the public debut of NextCruise, an event for which I am serving as volunteer chairman - TheCarConnection.com, in full disclosure, is not in any way involved in the event. Three senior industry leaders, one from each of Detroit's Big Three, were on hand and asked what it will take to transform the auto industry into one more environmentally friendly.

"There's no silver bullet," emphasized Micky Bly, a senior powertrain executive at General Motors and a key player in the development of GM's Chevy Volt plug-in hybrid-electric vehicle. Instead, we need to expect a whole range of alternatives to today's conventional gasoline engine.

The likely list ranges from hybrids and plug-ins, like Volt, to clean diesels and hydrogen power. Some of these are ready for the road already, while others, like hydrogen-powered fuel cells, are a decade or more away from production.

Surprisingly, all of the experts on the panel agreed that, as Bly suggested, "the gasoline engine isn't going away" anytime soon. But that doesn't mean technical business-as-usual.

Ford's new EcoBoost engine is an example of big changes in a relatively familiar package. This turbocharged direct-injection engine, which will debut in an upcoming Lincoln product, can deliver V-8 performance with V-6 mileage.

That package is complex, and it isn't cheap. But in some cases, surprisingly simple, low-cost technology will yield significant improvements in efficiency (read: mileage). Like something automotive engineers alternatively call Autostart, or Start-Stop.

If you've driven a full hybrid, like the Toyota Prius or Ford Escape Hybrid, you've undoubtedly experienced the concept. Come to a light, step on the brake and you may notice a subtle shudder, as the gasoline engine is shut off automatically. The light changes, you lift your foot, and before you even reach the accelerator pedal, the engine is running again.

Idling is a hidden thief, capable of robbing a gallon or more an hour, whether you're sitting in heavy freeway traffic, or waiting on line for a coffee to go. Recent studies show that you can save fuel shutting an engine off for as little as 15 seconds rather than idling. Few of us want to keep switching on-and-off as we creep forward in line, or in traffic, so it's great to have the car do it for you automatically.

"In 10 years, you'll be looked at as low-tech if your car runs at idle," said another speaker at the NextCruise forum, Chrysler's senior manager of hybrid system integration Jay Iyengar. And it won't be just hybrids offering the feature, but just about every vehicle on the road.

What other features might we see? While BMW wasn't on hand for the Wednesday panel, the company will be participating in the actual NextCruise next month, and we imagine it'll be talking about some of the mileage-minded features on the new 1-Series, such as its electric power steering. BMW isn't alone there, of course. On the I-4 version of the Saturn Vue, electric v hydraulic power steering saves about a mile a gallon. But the BMW 1-er uses a new, rack-mounted motor that restores the sort of handling and road feel earlier electric steering systems lost.

Look for that technology to spread, as, I believe, will the new 1-Series system that automatically decouples the car's alternator when the battery is charged up. Spinning power steering pumps and alternators can suck several miles a gallon off your mileage numbers. This new system is available only in Europe - for now - but look for it to propagate fast, as automakers race to meet tough new mileage standards.

Yes, it's possible to yield big savings through major efforts, like adopting lightweight body panels and switching to advanced powertrain technologies. But manufacturers have yet to pluck all the low-hanging fruit. So relatively simple systems, like Autostart, will play an important role in the greening of the automobile.

Oh, and for those interested in the upcoming NextCruise, here's the formal press release:
2008 Inaugural NextCruise^TM Brings Environmentally Friendly and Future-Looking Dimension to Woodward Dream Cruise
Nine Auto Manufacturers - And Two "Green' Motorsport Series - To Display Technologies And Provide Public Ride And Drives
Pleasant Ridge, Mich., July 23 - The 2008 Inaugural NextCruise^TM, to take place on August 15-16, is a new event - new in both concept and content. Staged in the City of Pleasant Ridge, NextCruise^TM introduces an environmentally friendly and future-looking dimension to the Woodward Dream Cruise, widely viewed as the world's largest automotive spectator and participation event.

Nine of the world's largest automakers are supporting NextCruise^TM, by providing the public with multiple opportunities to check out - and drive - the latest in "Green Machines" (including hybrids, clean diesels and those with other, new super-high-mileage and ultra-low-emission technologies).

"NextCruise^TM marks a number of important firsts," said Paul Eisenstein, Event Chairman. " It's the first-ever public event that brings together such a large array of leading automakers, specifically to display environmental vehicles and technologies; the first-ever event where the public has the chance to drive such a wide assortment of clean, high-economy cars, trucks and crossovers; and it's the first-ever official Woodward Dream Cruise event that is specifically future-focused.

"NextCruise^TM helps expand the relevance of the Woodward Dream Cruise from what is primarily a retrospective into a celebration of the automobile, past, present and future," Eisenstein added.

NextCruise^TM will also feature displays of even more advanced green concepts and technologies, such as fuel cells and hydrogen-powered internal combustion engines, together with experts to provide insight into how those developments can reach production in the not-too-distant future.

"As Pleasant Ridge has the longest stretch of green space on the entire Woodward Corridor, it's highly fitting that the City should be the host of this "Green" event as part of the Woodward Dream Cruise," said George Lenko, Pleasant Ridge Commissioner and NextCruise^TM organizer. NextCruise^TM will be based in Memorial Park, immediately adjacent to Pleasant Ridge City Hall.

"Today's and tomorrow's Green Machines challenge the stereotype that environmentally-friendly automobiles require customers to make significant sacrifices: in size, features, comfort and, especially, performance," said Eisenstein. "NextCruise^TM provides a venue for manufacturers to display current and future Green technologies and engage the public in understanding that the newest Green Machines are roomy, well-equipped and, in keeping with the spirit of the Dream Cruise, able to deliver surprising performance and fun."

NextCruise^TM also will include a look at the next generation of "green" motorsports, including the ethanol-fueled IndyCar Series, and the American Le Mans Series (ALMS), which features a unique Green Racing Challenge this season. The Detroit Belle Isle Grand Prix - which takes place on Labor Day weekend - includes both IndyCar and ALMS races. The motorsport display will include race cars and appearances by key IndyCar and ALMS drivers.

"Because of the press of competition, motorsport has traditionally developed technologies that have found their way to production cars," Eisenstein stated. "Motorsport can be exciting, competitive and environmentally friendly, all at the same time.

"NextCruise^TM, put simply, is lean, mean ... and green."

NextCruise^TM will be held in Pleasant Ridge's Memorial Park along Woodward Avenue, north of Nine Mile Road. There will be a public preview on the evening of August 15. NextCruise^TM itself takes place concurrent with the Woodward Dream Cruise on August 16. Major auto manufacturers supporting include General Motors, Ford, Chrysler, Toyota, Nissan, BMW, Mercedes-Benz, Audi and Volkswagen. Other sponsors and exhibitors include Bridgestone, Detroit Belle Isle Grand Prix, IndyCar Series, American Le Mans Series, PR Newswire, G-2 Communications and ESI. For information go to www.nextcruise2008.com or email nextcruise2008@aol.com.

Pleasant Ridge is known for its historic homes, tree-lined streets and active citizens who dedicate their time for the betterment of the community. A long tradition of community pride is reflected in the City's beautiful parks along Woodward Avenue and its pristine neighborhoods. Many of the houses in Pleasant Ridge are part of a nationally-recognized historic district and all the homes reflect the care and attention which assures that Pleasant Ridge will remain a beautiful community for generations to come. A strong sense of community, dedication to historic preservation and ideal location makes Pleasant Ridge the perfect city for all ages, interests and lifestyles. Go to www.cityofpleasantridge.org.

# # #

Blink your eyes and you might not even notice when you pass through Pleasant Ridge, Michigan. The sign on Woodward Avenue says both "hello" and "goodbye." But next month, it will serve as ground zero in the green car revolution, helping transform the annual Woodward Dream Cruise from a past-tense retrospective into a glimpse of the future.

Tomorrow morning, I'll be serving as master of ceremonies at a news conference announcing the first annual NextCruise. The event itself will take place on August 15 and 16, in Pleasant Ridge, one of the cities that lines the route of the Woodward Dream Cruise, the largest automotive spectator event in the world.

Each year, the Dream Cruise brings out tens of thousands of muscle cars, hot rods, and other classics. NextCruise adds a new dimension, bringing together nine of the world's largest automakers: GM, Ford, Chrysler, Toyota, Nissan, Audi, VW, Mercedes-Benz, and BMW (next year, Honda?), each of whom will display up to three of their greenest vehicles for a static display of high-mileage and environmentally friendly automotive technology. That includes hybrids, plug-ins, diesels, fuel cell and hydrogen power, and other green machines.

That alone makes NextCruise a first-of-its-kind event. But even more compelling, each of the makers will be providing up to two vehicles for a public ride-and-drive. Getting "butts in seats" is always a challenge for automakers, and no more so than with today's new green machines. Sure, lots of folks talk about environmentally friendly automobiles, but most folks still think this means small stone ponies that cost a lot and don't offer much in the way of creature comfort.

Think again. The newest models are proving to be lean, mean, and green. The Toyota Prius is surprisingly roomy and affordable. The Lexus GS 450h is quick. Cadillac's Escalade Hybrid has plenty of towing power and even more bling. And Mercedes' new BlueTec diesels deliver performance and mileage in a single package.

Along with the nine automakers, NextCruise will feature the latest in green motor sports technology, sponsored by the Detroit Grand Prix. Participants include the ethanol-powered IndyCar Series and American Le Mans Series, which will launch the new Green Car Challenge this year. A two-seat Indy car will be on-site, along with several Indy driving simulators.

NextCruise will be open to the public, starting at 6 a.m. to 9 p.m., on Friday, August 15, and then all day during the Woodward Dream Cruise, on Saturday, August 16. There's no charge, though licensed motorists will have to sign up for a ride in one of the green machines.

(Full disclosure: I serve as chairman of the volunteer NextCruise Committee. The project is not in any way supported by or connected to TheCarConnection.com.)

General Motors is teaming up with a consortium of more than 30 utilities around the country in a bid to make sure key cities will be ready when it rolls out its new plug-in hybrid, the Chevrolet Volt, in 2010.

Also known as an "extended-range electric vehicle," Chevy's sedan will be able to run as much as 40 miles on a single charge of its lithium-ion batteries - and then drive on indefinitely using a small, internal combustion engine. The automaker expects owners will charge up their Volts at home, each night, and possibly top up during the day as well, using charging stations at work or public garages. Conceivably, say for those who use the vehicle primarily to commute, it could operate for months solely on battery power.

That is, of course, if a motorist can find a place to plug in. Unlike some of the electric vehicles of years past, Volt will be able to charge up from any 110-volt outlet, but speed is a factor, and going to 220-volt systems would make it easier to ensure a full charge fast, especially when using a public charging station.

So one reason why GM wants to work with the nonprofit Electric Power Research Institute and its affiliated utilities is to work up ways to get higher-voltage systems in place across the country. That's not always as easy as it sounds. It could require, in some cases, changes to local and state regulations and codes. It might require upgrades by utilities to meet added electric demand.

The U.S. Department of Energy has already awarded a $10 million grant to EPRI and GM for a plug-in hybrid demonstration program. Meanwhile, both presidential candidates have jumped on the bandwagon, calling for tax credits and other federal support, even a contest to spur development of advanced automotive battery technology.

You've undoubtedly been hearing a lot about the "hydrogen economy" in recent years, as automakers ramp up efforts to develop fuel-cell vehicles and other technologies capable of running on the ultra-clean fuel, hydrogen.

Technical challenges abound, though the obstacles are starting to fall. The latest fuel cell "stacks" are more powerful, lighter, and more affordable than ever, and progress is taking place at a rate that even computer chip manufacturers might envy. Next-generation hydrogen storage systems are still lacking, but improvements are clearly coming. And energy companies know how to produce the gas in volume when the time comes.

Here's the problem, however: Putting everything in place, from the factories to produce fuel-cell vehicles, or FCVs, to the hydrogen refineries to the fueling stations the nation will need by the tens of thousands, the total cost will come to about $200 billion by 2023, according to a new report by the National Academies of Science.

The bulk of that will need to come from the auto and energy industries, though the NAS estimates government contributions will come to around $55 billion.

Even then, the rollout of hydrogen-powered vehicles will be slow, noted the 256-page report. Hydrogen technology is "not likely to be cost competitive until 2020," and it sees FCVs accounting for a maximum 2 percent of the nation's motor vehicle fleet by 2023. But then, hydrogen power "could grow rapidly," with such vehicles reaching 80 percent of the market by 2050.

Hydrogen power emerged as a serious technology a decade ago, as manufacturers came under pressure to produce "zero-emission vehicles," or ZEVs. Only two technologies currently qualify: the battery car and the fuel-cell vehicle. The former technology is plagued with problems, such as limited range, long charging times, and high cost. Today's FCVs also are costly, though manufacturers believe they will eventually become cost-competitive with internal combustion technology. And fuel cells, sometimes called "refillable batteries," don't have range limitations, as long as there's a network of filling stations available.

While hydrogen is often seen as the darling of environmentalists, some have begun to question its long-term advantage. Used in a fuel-cell stack, the gas creates nothing more than water vapor in its exhaust. (Burned as a substitute for gasoline in an internal combustion engine, trace amounts of smog-causing NOx are produced.) But the question is where to get the gas.

To some, hydrogen is an "energy carrier," rather than a fuel, like petroleum-derived gasoline. It may be the most abundant element in the universe, but you can't pump it from the ground, like oil, or dig it up, like coal. It must be produced by breaking down a more complex compound. That can be water, made up of two parts hydrogen, one part oxygen, or from coal, natural gas, and a variety of other substances. Doing so takes energy, however, lots of it. And if that comes from dirty sources, such as coal-fired electric plants, the switch to hydrogen would have minimal impact on the environment overall.

So, the battle to build the hydrogen economy will be about more than just finding enough money.