Also the notion of a country being energy independent when relying upon oil is a silly one. In the global economy, we want everyone to have relatively cheap energy, if not the global standard of living will fall.
Also the notion of a country being energy independent when relying upon oil is a silly one. In the global economy, we want everyone to have relatively cheap energy, if not the global standard of living will fall.
Over the longer run, though, if prices have risen significantly and permanently, and that coincides with a point where a consumer decides they need to replace their car, then oil consumption does start becoming more elastic: the consumer is more likely to choose the more fuel efficient vehicle. We've seen some of this in the rise in sales of small vehicles versus trucks and SUVs lately.
This is where building a long-term steady upward price trend is important, versus short-term price shocks, since the former allows the economy to react appropriately by increasing efficiency.
Sure. But there's no path to energy independence that doesn't include either: A.) huge economic shocks or B.) extending use of fossil fuels during the transition.