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Unformatted text preview: :00 PM Oil DDW 2012 1 Inaction on the climate causes Saudi Arabia to cut oil production for profit – Collapses the economy 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 Red Scenarios depict a future that is characterised by rapidly-dwindling oil reserves combined with carelessness towards the tackling of environmental issues. There is an apparent lack of adequate commitment to reducing CO2 with only a few residual emission trading schemes. Consequently, there is an increase in climate change migrations and natural disasters such as flooding. In a world of scarce oil reserves, Saudi Arabia - which has often been perceived as a ‘consumerfriendly OPEC member’ - could decide dramatically to cut its oil production in order to take economic advantage of the resulting ‘skyrocketing’ oil prices. If the steep-rising oil prices are sustained, they could easily have a disastrous impact on the global macroeconomy and financial markets as well as creating political/social chaos in large oilimporting countries. Nevertheless, this strategy does not just increase the near-term oil revenues of Saudi Arabia, but could also benefit other ‘high-cost’ oil-producers whilst ensuring that its rapidly-diminishing national asset is not being dissipated too quickly. With high oil prices and the non-existence of a carbon-constrained world, the development of tar sands and Coal-ToLiquids (CTL) could become viable (although not necessarily of great significance). Despite the absence of a vigorous environmental stimulus, high oil prices could motivate interest and research into alternative energy sources and thereby boost the global prospects for renewables, which are not being sufficiently encouraged by environmental arguments. Given its huge land area and its reasonable wind resources, Saudi Arabia could contemplate the option of wind power in order to boost the share of renewables in the country’s energy mix. 270 Oil DDW 2012 1 Efficiency Doesn’t Link 271 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Cutting emissions means dirty coal goes first – Oil demand is preserved Tétreault, Cox distinguished professor of International Affairs at Trinity University, 09 Mary Ann Tétreault, Cox distinguished professor of International Affairs at Trinity University, 12-15-09, [“La Longue Dureé and Energy Security in the Gulf,” www.tandfonline.com/doi/abs/10.1080/13530190903338920] E. Liu Producers have used oil to punish rivals and enemies and some resulting disruptions spilled over into the global political economy as a whole. The most notable example is the production cuts instituted by some Arab oil exporters in conjunction with the October 1973 Arab-Israeli war.9 Efforts to reduce glob...
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