Watching the news is a dangerous enterprise for those of us trying to maintain a clear picture of this election season’s most important issues. Despite all the chatter, it seems relatively obvious that our most fundamental problem is American energy policy, or more specifically: oil prices and our dependence on cheap energy.

If you buy that premise, which I’m prepared to debate elsewhere, then this election should really only be decided by one evaluation criterion: which candidate has a better plan to reduce our oil consumption, replace it with viable alternatives, and spur innovation and commercial development of new technologies (and a new green-collar economy)?

A quick survey of both candidate’s websites makes it fairly obvious (see the official stance of Obama and McCain). I’ll be comparing each candidate’s plan in more detail later on, but for now I’ve republished some of the main points from Obama’s campaign website, in order to highlight how he intends on dealing with oil prices and our dependence on them.

To assist in this evaluation, here are three important criteria. If we’re serious about transitioning away from petroleum as our primary transportation fuel, we’re going to have to hit it from multiple angles. It doesn’t seem totally unreasonable to estimate that each of these could account for 1/3 of our total fuel usage:

Decrease consumption and improve efficiency (#8 & 9).

Develop and rapidly commercialize alternative fuels and infrastructure (#1, 4, 5, 6, 7).

Develop and rapidly implement new technology (#1, 2, 3).

Key elements of Obama’s plan:

1. Invest $150 Billion over 10 Years in Clean Energy with a focus on technology developed in the US:

This includes next generation biofuels and fuel infrastructure, commercialization of plug-in hybrids, development of commercial-scale renewable energy, low-emissions coal plants, and beginning the transition to a new digital electricity grid.

2. Double Energy Research and Development Funding:

Obama will double science and research funding for clean energy projects including those that make use of our biomass, solar power and wind resources.

3. Require 25 Percent of Renewable Electricity by 2025:

Establishing a 25 percent federal Renewable Portfolio Standard (RPS) to require that 25 percent of electricity consumed in the U.S. is derived from clean, sustainable energy sources, like solar, wind and geothermal by 2025.

4. Deploy Cellulosic Ethanol:

Obama will invest federal resources, including tax incentives, cash prizes and government contracts into developing the most promising technologies with the goal of getting the first two billion gallons of cellulosic ethanol into the system by 2013.

5. Expand Locally-Owned Biofuel Refineries:

Less than 10 percent of new ethanol production today is from farmer-owned refineries. New ethanol refineries help jumpstart rural economies. Obama will create a number of incentives for local communities to invest in their biofuels refineries.

6. Establish a National Low Carbon Fuel Standard:

Obama will establish a National Low Carbon Fuel Standard to speed the introduction of low-carbon non-petroleum fuels. The standard requires fuels suppliers to reduce the carbon their fuel emits by ten percent by 2020.

7. Increase Renewable Fuel Standard:

Obama will require 36 billion gallons of renewable fuels to be included in the fuel supply by 2022 and will increase that to at least 60 billion gallons of advanced biofuels like cellulosic ethanol by 2030.

8. Set America on Path to Oil Independence:

Obama’s plan will reduce oil consumption by at least 35 percent, or 10 million barrels per day, by 2030. This will more than offset the equivalent of the oil we would import from OPEC nations in 2030.

9. Increase Fuel Economy Standards:

Obama will double fuel economy standards within 18 years. His plan will provide retooling tax credits and loan guarantees for domestic auto plants and parts manufacturers, so that they can build new fuel-efficient cars rather than overseas companies. Obama will also invest in advanced vehicle technology such as advanced lightweight materials and new engines.

For more on Obama’s plan, see the Obama ’08 campaign website.

More on Obama and Oil Prices:

Photo Credit: Obama ’08