‘Guns, Germs, and Steel’ Author Discusses Costly Crude and the Future of Oil

GWEN IFILL:

By now, it's no secret the price of oil has been rising steadily most of the year, affecting jobs, travel, and the global economy. Over the past few weeks, we've talked to an environmental activist and political adviser, the CEO of a major oil company, and two writers who have chronicled how the oil market works.

Tonight, a different take: why high gasoline prices might be good. Ray Suarez has that conversation.

RAY SUAREZ:

Tonight, we talk to Jared Diamond, professor of geography at the University of California, Los Angeles. He's the author of the best-selling books, "Collapse: How Societies Choose to Fail or Succeed," and, "Guns, Germs and Steel: The Fates of Human Societies," which won the Pulitzer Prize.

Professor Diamond, as far as you can tell, what are the consequences of $120-a-barrel oil?

JARED DIAMOND, Author:

In my view, the consequences are hopeful consequences, namely that I hope that the price of oil will rise to a level that matches the costs of oil consumption for Americans and comparable to levels paid for oil by Europeans, which about double ours.

RAY SUAREZ:

Well, it's interesting you should say that, because economists have long observed that, when the price of a commodity spikes, people often use less or learn to do with less. And that doesn't seem to be happening in a widespread way in the United States.

JARED DIAMOND:

Actually, it is happening in a widespread way, at least here in Los Angeles where I live. Within the last year, about a year or so ago one scarcely saw any Priuses on the road. Now you see them very commonly. So Los Angelenos have been much more concerned about gas consumption.