Rising oil prices will end urban sprawl … or not?

A popular assumption about rising oil prices is that people will have to drive a lot less and use public transit a lot more. This, in turn, will lead to greater housing density and fewer roads, i.e. less sprawl. And thus will be created the compact city—more efficient both financially and environmentally, and more vibrant in the bargain, a very good thing indeed.

But how valid is this assumption