Alternative fuel source a bad thing

Given the tension and hatred between the Arab nations and the west it seems the only reason there is a relationship at all is the mutual oil needs. The Arab nations need to sell and the west needs to buy.
If the US was to come up with a cheap renuable fuel source and said to the Arab nations we no longer need your oil and will no longer buy your oil.
Would the relations between nations deteriate even more?
What effect on the Arab nations economy would this have?
Would Arab governments still have a reason to protect westerners visiting/working in thier lands?
What would hold the peace?

Although it would be good for the enviroment and the world in the long run, I wonder it it would not be the catalist for more problems.