Conventional creates it without man made energy inputs, but they are energy inputs all the same. With this technology we can also use the existing distribution network and not worry about running into a wall with the world platinum supply.
This also ignores the other uses of oil. Namely plastics, which have revolutionized commercial goods manufacturing. In addition the majority of agricultural fertilizers are derived from natural gas sources. Not to mention mechanical lubricants, cutting oils, and bearing greases. Transit use is high at 70%, but the other 30% is also important (24% is industrial uses, while 5% is residential and the remainder is electrical production consumption).
As for inefficiencies, I'm not well versed enough in that subject to offer a literate critique. Though it would make sense to engage in efficiency upgrades in combination with a transition towards a viable total electric model. Which I suspect is already underway with the move towards fuel efficient sub compacts (Honda Fit), hybrids (Toyota Prius) and full electrics (Tesla). This does nothing to address global warming however, since the majority of the US summer peak electrical power production comes from coal and petroleum. Unless we want to talk about using nuclear as a bridge... that is unlikely to go over very well on this forum (or with you judging by your previous comments re Fukushima). Solar and wind are viable, but do we have the political and social will to do it (no and yes respectively). I personally prefer thermal solar techniques due to their enhanced ability to simulate baseload production. Can we ramp them up fast enough to fight peak oil, and transition our transportation infrastructure, while mitigating hydraulic fracturing that is contaminating the water table and fighting peak water, while banning neo-nictinoids (save the bees) and fighting monsanto's desire to own the concept of life and maintaining an agricultural output, all while maintaining our current way of life that if extended globally would consume 7 times the resources that the earth can currently provide...
I think the time for hard choices issued by hard (wo)men are at hand. We will need a strong hand to guide the flock before total destruction.
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