Call me stupid, but I still don't get the connection between oil and fusion. I'm not disputing either you or your friend, but oil is NOT an atomic science and fusion IS. So, I'm still confused on that point. If you can get more info, I'd LOVE to see it, because this is (obviously) interesting to me.
That moron leatherface governor we had in Texas at the time deserves part of the blame.
You mean Queen Ann? I have no real love for her, but I recall the efforts she made to try to get Clinton to let the state buy it, finish it and run it. I know that she made a couple of trips to DC to discuss it with him and he wasn't going to change his mind. I also wrote him a nasty-gram about it, not that I had any influence.
Very simple. Controlled fusion could be extremely cheap and clean - leading to almost free electricity - leading to electric cars actually making sense - leading to electric heating of homes actually making sense - leading to a lot less need for oil.
And if we had a government worth spit at the time, they would support the domestic oil business and slap a tariff on imported oil that would put the maniacs in the Middle East out of business. Unfortunately, less oil means less money for big oil.
All of the oil companies are multinationals. Even if their domestic operations were protected, they wouldn't like seeing their overseas operations decimated.