Remember back in 2004 when this oil prices soared past first $40 and then $50 and people said 'don't worry, to be as bad as the previous oil shocks it would have to reach $100', well yesterday it did. Normally when prices go up demand goes down, but the world economy seems to be finding it hard to adjust. Here's a three step programme to help it kick the oil habit.
1. Adopt fuel efficiency standards
The 130g of CO2 / km standard proposed by the EU may not go far enough but higher fuel standards means lower fuel consumption.
2. Switch out of Oil and Diesel Generation
In 2003 Oil and Diesel accounted for 494 GW of power generation around the world. A bit more than half the amount produced by Gas and a bit less than half the amount produced by coal. The Energy Revolution Scenario describes how investments in wind power, small scale hydro power and increased use of combined heat and power plants could help cut that down to almost nothing by 2050.
3. Improve household efficiency
With all that oil going into power generation it's easy to see that using less power in the home will cut demand for oil. The world can make a good start by phasing out incandescent lightbulbs in favour of more efficient types.