Learning to live with sky-high oil

Consumers and business go green while governments worry

Unlike the energy crises of the 1970s, when the oil price spike was temporary, analysts say high energy prices could be here to stay. A sustained price increase will hit businesses and consumers on almost every conceivable level, and living with this could change global behavior for good.

“We are getting fuel efficiency and we are getting it real fast — and the government has nothing to do with it,” said John Kingston, global director for oil at Platts, a leading energy trade publication.
But while oil demand is cooling in the U.S. and Europe, the rapidly growing economies of China and India are gobbling up the slack.

“Whatever cuts are made today by the major players of 30 years ago are all going to be eaten up by nations that weren’t even on the radar screen then,” said Global Insight analyst Mary Novak. “There is no more supply, there is only demand.”