As oil flirts with prices that call to mind the shocks of the 19708 the usu
al Cassandras have been warning of dwindling oil supplies and sky-high pric
es. But the danger is precisely the opposite. The next two decades will wit
ness a prolonged surplus of oil, which will tamp prices down. This world of
cheap oil will have serious political reverberations. Without rising oil r
evenues, such key states as Saudi Arabia, Russia, Mexico, and Colombia will
face worsening crises at home. The same is true in spades for Central Asia
, where Washington's current wrongheaded policies could drag it into crises
that make the Balkans look like a pregame warm-up. The world should worry
less about a scarcity of oil than about a glut.