As the ruler of a country that sits atop 300 billion barrels of oil, Saudi Arabia’s King Abdullah was no fan of proposals to limit the burning of fossil fuels. During most of his reign, the king’s chief envoy to climate talks was a global-warming skeptic who boasted of his success at scuttling climate treaties.
But it was in the monarch’s final months that Saudi officials hit upon a more effective way to knock the clean-energy movement off its tracks: cheap gas.
Since Abdullah’s death last week, Saudi officials have recommitted themselves to recent policies that have helped drive oil prices to their lowest levels in a decade.
The kingdom’s efforts to manipulate oil markets are wreaking havoc with Saudi Arabia’s chief oil rivals, from Iran and Russia to the tar-sands mines of western Canada. Now energy experts are seeing evidence that the oil bust is helping Saudi Arabia achieve another long-term goal: undermining global efforts to reduce dependence on fossil fuels.
Lower oil prices already have spurred demand for gas-guzzling SUVs and a spike in miles driven by American consumers, new government figures show. Whether intentionally or not, the continued slump in prices could hurt sales of low-emissions vehicles in Western countries and cool enthusiasm for renewable energy in the developing world — objectives that Saudi officials have long pursued through other means, analysts say.
“If a period of low prices gets consumers hooked on cheap gas and inefficient cars, that sustains their market,” said Durwood Zaelke, an expert on international environmental law and veteran participant in climate-change negotiations.
