Actually, from what Ive read, the cheapest way to make hydrogen is from methane, using steam reformation. The idea that hydrogen is a ticket off of hydrocarbons falls apart once you take economics into account. Sure, you can make hydrogen from other sources, like electrolysis, but the cost ofthat is about 10X per joule than gasoline, and there aint no way oil is going to $300/barrel anytime soon.
Almost uniformly they call people foolish, quote "engineers", and talk about "energy inputs" avoiding the "energy inputs" converting oil into gasoline, and transporting the heavy fuel to markets. God forbid they bring facts and practicalities into the debate. :-) Also, did it occur to you that $1.50/gallon takes into account those transportation costs (and about 40% in taxes to boot!!) dont forget that!
I meant to write the opposite!!! Maybe that's why some others are nasty to me in here... :)