There is a lot of talk about achieving energy independence. However so long as companies are free to trade is that really reasonable?

Lets say we curb demand through more efficient vehicles and the like or bring other things online. It would seem the result would be that the oil producers would simply lower their prices. Meaning people would use more gas again and we'd import that instead of producing energy through more expensive means here.

The only free trade ways I see to eliminate a foreign dependence on oil would be.

1. To get really lucky and develop energy that is cheaper to produce than oil that literally shoots out of the ground. Like a Mr. Fusion or something.

2. To subsidize local energy production so much that its cheaper on our markets than foreign oil even after they drop prices.

Sanctions won't really do it because oil is mostly a fungible good. Meaning that it's pretty much all the same. So if we saction Iran but China doesn't than Iran could just sell its oil to China (likely at a cheaper price), and we would then have to buy the more expensive oil that China would otherwise have bought.