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How to Burn Less Oil

Source: paulkrugman.substack.com

A sudden cut in global oil supply forces higher prices that make people drive less right away.
Over time, economies can switch to better fuel efficiency and other energy sources to use far less oil.
The world today needs much less oil per dollar of economic output than in past crises.

Global oil supplies just shrank by about 10% due to conflict blocking key routes like the Strait of Hormuz. This spike in prices hits hard in the short term by curbing driving and transport. It matters because economies can adapt over time without collapsing, unlike the 1970s oil shocks.