12 songying fang assistant professor of political

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Unformatted text preview: itiative in Abu Dhabi, et al., 08 Yasser Al-Saleh, senior research fellow at the Insead Innovation and Policy Initiative in Abu Dhabi, et al., Paul Upham and Khaleel Malik, 10-08, [“Renewable Energy Scenarios for the Kingdom of Saudi Arabia,” Tyndall Centre for Climate Change Research, www.tyndall.ac.uk/sites/default/files/wp125.pdf] E. Liu These scenarios envision a future in which global environmental concerns become significantly stronger and environmental actions become more coordinated. Greenhouse gas emissions are vigorously scrutinised with performance targets being completely agreed on and respected around the world. Carbon Capture and Storage (CCS) has become a widely-adopted technology, and technological advancements in fuel cells and hydrogen storage are attributed to a strong market growth for hydrogen fuels in transport applications. As a result of environmental movements towards carbon-neutral and carbon-free technologies, the rate of climate change is slowed (yet not reversed). Given the availability of oil resources in Saudi Arabia, a ‘market flooding’ strategy that might drive oil prices down makes a lot of sense in a world where environmentally-friendly options are strongly favoured. Nevertheless, adopting such a hostile strategy, which Saudi Arabia has constantly avoided, would mean that maintaining good relations with other oil-producers could become an increasingly difficult challenge. For a country like Saudi Arabia that is blessed with very high levels of direct solar radiation, but is increasingly faced with an increased demand for electricity and water as well as a low revenue stream (owing to low oil prices), solar thermal seems to be an attractive choice worth considering. 191 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Flooding Good – Checks Iran 192 Oil DDW 2012 1 Saudi market flooding diminishes Iran’s power and influence Fang, Assistant Professor of Political Science, Rice University, et al., 12 Songying Fang, Assistant Professor of Political Science, Rice University, et al., AMY MYERS JAFFE, TED TEMZELIDES, 1-12, [“NEW ALIGNMENTS? THE GEOPOLITICS OF GAS AND OIL CARTELS AND THE CHANGING MIDDLE EAST ,” JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY, http://www.owlnet.rice.edu/~tl5/GasCartel.pdf] E. Liu However, it would be premature to draw the conclusion that Saudi Arabia will no longer be willing to wage a price war. Its interest in carrying the spare capacity to wage a credible price war goes beyond its security relationship with the United States. Saudi Arabia gains international clout from its ability to guard the global economy by raising oil output and lowering oil prices. Moreover, Riyadh’s ability to threaten other oil producers that it could flood the oil market is a critical aspect buttressing its leadership role inside OPEC and gives the country regional clout as well. Indeed, among the best levers Saudi Arabia has to influence regional politics is its ability to dramatically lower the price of oil. Saudi Arabia has flooded the oil market for geopolitical reasons in the past, and could arguably do so again. For example, Saudi Arabia has made it cle...
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This note was uploaded on 01/30/2013 for the course ECON 101 taught by Professor Burke during the Spring '13 term at Southern Arkansas University.

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