Costly oil spurs long-term change in consumers

SAO PAULO (Reuters) - High oil prices have caused "dramatic" and longer-term changes in consumer behavior, U.S. Acting Deputy Energy Secretary Jeffrey Kupfer said on Wednesday.

"Oil prices continue to come down but it's unclear what will happen with the prices," said Kupfer while meeting with representatives of Brazil's ethanol and automobile industry at the American Chamber of Commerce in Sao Paulo.

"But at the same time, U.S. citizens are making decisions that will carry forward regardless of how fuel prices fluctuate," he told journalists.

World oil prices have fallen sharply over the past month, with New York futures prices trading at under $119 a barrel, well off the $147.27 a barrel high set on July 11. U.S. gasoline and diesel prices have also fallen back in the past month.

U.S. consumer demand for gasoline has dropped sharply in response to the record high fuel prices. The United States has the largest automobile fleet in the world and is the top energy consumer.

"We've seen a really dramatic change in buying patterns for different automobiles with big shifts away from SUVs, pickup trucks and other larger less fuel-efficient cars for smaller cars, for hybrids," he said.

"And when people do that, they are going to own that car for a number of years," Kupfer said. "We've also seen increases in mass transportation use."

Kupfer is meeting in Brazil with energy sector officials, including his counterpart Mines and Energy Minister Edison Lobao, to discuss joint U.S.-Brazil projects to promote the production and use of ethanol as fuel, as well as improved energy security in the Americas.

(Reporting by Reese Ewing; Editing by Marguerita Choy)