I have to disagree, Joe. Bits are easier to move than atoms, if there's connectivity; the advances in telecommunications that Friedman cites have created that connectivity. It is this development that enables many types of bit-moving knowledge work to be done globally, not cheap energy.

But, even if it was cheap energy, rising prices would only slow down globalization, not stop it. Rising oil prices in a market-driven global economy would only result in more dollars available for R&D into energy alternatives, driving more innovation and eventually solutions. Energy would continue to be available.