Many Americans are disgusted by the fact that, faced with an energy crisis, the government seems to produce nothing but hot air. I think the government is paralyzed because there's no one clear solution.

Instead, there are a multitude of options — more drilling, nuclear power, hydrogen cars, solar power ... you name it. Every alternative has a lobby in Washington to press its case, but there's no one to tell our elected officials which is the best route to take.

I field these questions all the time, from friends and co-workers who ask me if this or that particular energy solution is the next big thing. So let me give you my appraisal of three alternative energy solutions that work and three that DON'T — along with some choice investments you can make to power your own bottom line.

Let's start with ...

Energy Solutions That Don't Work

You probably already know that corn-based ethanol isn't the right solution, for the simple reason that nearly as much energy is used making corn-based ethanol as you get out of it. So I won't waste a lot of time except to point out that the U.S. Department of Agriculture STILL anticipates corn ethanol production of 9.3 billion gallons for the crop marketing year 2007/2008. That will use more than one-fourth of our corn crop (and drive your food prices through the roof). Now, here are three more solutions you may think will work ... that probably won't.

Bad Idea #1 — Oil from Algae

Not all algae are created equal. Some are just pond scum, and some algae, properly cultivated, can produce biodiesel — that is, diesel you can grow right in your own back yard (or converted swimming pool).

So what's the problem? Scale.

While it is true that algae can produce more biodiesel per acre per year than many land crops, it takes either lots of ponds or land covered in clear plastic algae-growing tubes, which have to be made from the oil you're trying to grow. So algae-based biodiesel will become a viable solution when the technology improves or we convert Lake Michigan to a biodiesel refinery.

Bad Idea #2 — Hydrogen Cars

What many people don't understand is that hydrogen isn't a fuel, it's a storage medium. So, whatever energy you store in a hydrogen-powered car has to be generated some other way (coal, natural gas, nuclear, etc.).

And then there's the danger factor. A tank of compressed hydrogen can explode with an earth-shattering "KA-BOOM" if hit hard enough. So you end up with highly pressurized, reinforced storage vessels which are three to four times the size of conventional fuel tanks.

Then there's the cost — the price of a hydrogen car easily runs over $150,000. Sure, costs will come down, but not that much.

Why does this idea have so much traction? Because both Washington and Wall Street love expensive boondoggles, making hydrogen fuel cells into black holes for your tax dollars.

Bad Idea #3 — Shale Oil

There is a big difference between oil shale and shale natural gas, and it is confusing the heck out of people. Let me make it simple: Shale natural gas works. Shale oil doesn't — not yet anyway. Oil shale is a rock that contains an organic compound called kerogen. Left on its own, kerogen might turn into oil in 100 million years. Oil shale is different from shale natural gas in a lot of ways. For one thing, shale gas is economically feasible, but shale oil hasn't proved profitable (yet).

To harvest the kerogen, the rock is dug up and heated to 700 degrees Fahrenheit.