Is the Oil Lobby so strong that the US Government will anger the World at the G8 Summit over emissions, & anger the Arab World over bases in Saudi, & over going to War over oil, when development of those alternative power sources could go a long way to removing those bones of contention?

The answer to this question is YES. And it's not just the oil lobby. A lot of the key people in the Bush administration are oil people. My opinion is that the oil industry is our real government (along with a number of other large corporate interests), and that Bush and the others in the government are their defacto employees.