Actually, you are both wrong.
if we really wanted people to use less fuel/oil, we should be fighting for bigger, less efficient cars.
Smaller, more efficient and inexpensive to operate cars only mean that people will drive more, and their numbers will actually stimulate the demand for more fuel overall. The new CAFE standards will do absolutely nothing to reduce demand for oil. Just the opposite.
If CAFE standards worked in reverse, mandating lower mileage, operating personal automobiles would ultimately become unaffordable to most citizens, forcing them either onto public transportation or into living in more concentrated economic centers, which is what the Progressive Utopians say they really want.