Oil importers could therefore start to act

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Unformatted text preview: e Impending Oil Shock: An Exchange,” Survival: Global Politics and Strategy, 50:4, 61-82, http://www.tandfonline.com/doi/abs/10.1080/00396330802329048] E. Liu In the end, it may be the financial implications of all this that will prove most harmful. As Elhefnawy rightly concludes, vast sums will be needed to develop climate-friendly energy sources to replace disappearing stocks of petroleum in the coming decades, and much of this largesse will have to be provided by governments. This , in turn, will require an awareness by policymakers that addressing the global energy crisis is a top governmental priority and must entail a substantial mobilisation of scientific, industrial and capital resources. Clearly, the outbreak of a Sino-American arms race will drain both attention and resources away from this sort of mobilisation. It is this outcome that we must fear the most. 263 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Bad – High Oil Prices 264 Oil DDW 2012 1 Oil independence causes Saudi Arabia to cut oil exports, quickly raising prices in the short term Al-Saleh, senior research fellow at the Insead Innovation and Policy Initiative 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 The Green Scenarios share with the Red Scenarios the limited availability of fossil fuels. In the Green Scenarios, however, there is much more concern and urgency attached to environmental issues. The global concerns of greenhouse gas emissions would become the subject of intense negotiations and strict international agreements. The combined effect of these factors would consequently enhance the viability of renewables and non-fossil energy means (including nuclear power) around the world. Moreover, hydrogen and biofuels would become widely used as transport fuels. Following this trend, Saudi Arabia would be no exception in pursuing a range of 27 renewable energy technologies (i.e. solar thermal, solar PV and wind power) in order to meet its rising domestic needs for electricity and water production. With regard to its remaining oil reserves, Saudi Arabia might decide to cut production and oil sales in order to stretch the lifetime of its most precious export and further expand its energy-intensive industrial capabilities. Consequently, the availability of a continuous flow of ‘cheap’ fossil fuels into international markets would become increasingly threatened. Oil-importers could therefore start to act independently to enhance their energy security, e.g. through supporting CTL and oil shale projects that would be coupled with CCS in order to avoid increased greenhouse gas emissions. 265 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Bad – OPEC Monopoly Power 266 Oil DDW 2012 1 Alternat...
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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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