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Sure, the oil industry has improved efficiency..
Our argument has nothing to do with the efficiency of the oil industry as far as I can see. We're talking about the increased energy efficiencies of factories that make shoes and cars, the end users of energy.
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While you might like to think energy efficiency has increased despite a low real-price environment in order to support your position, the reality is different.
[QUOTE]At the national level, energy use is measured in "quads" or quadrillions of British thermal units (Btus). Even though energy use in the United States rose from 66 quads in 1970 to 94 quads in 1996, a 42 percent increase, the US economy grew by 104 percent. Thus, the energy intensity of the US economy, as measured in energy use per dollar of gross domestic product (GDP), fell by 30 percent, indicating that economic growth is not strictly tied to energy use. However, since 1986, US energy intensity has stabilized, as energy use and economic activity have risen at about the same rate, which is similar to the pre-1970 trend.
After reaching its peak in 1978, per capita US energy use -- another measure of energy intensity -- declined dramatically for five years due to high energy prices. However, between 1983 and 1996, per capita energy use increased steadily back to 1978 levels, as fossil fuel prices fell. Despite this increase, the decline in the rate of growth has been dramatic, from 7 percent per year in the 1960s to about 2 percent today.[QUOTE]
I wish I had been around for this earlier - it's a bit of a hobby horse for me. The facts show that energy intensity falls during a price spike as companies adjust to the price change. Your contention that we are becoming more efficiency regardless of price is way off base - energy/$GDP has been flat for 20 years (maybe falling the last 2 with the price spike!!!) and energy use per capita has slowed down its growth rate but continues to rise - hardly a ringing piece of evidence we are using energy more efficiently.