I don't think that the quality of life would go up. I suspect that the nations that are currently living large off of the high price of oil are about as rich as they can reasonably expect to get. In fact, easy access to alternative fuels - even if largely available from the same nation states that produce oil - would probably drive the quality of life in those countries down somewhat because I doubt that, say, mass produced power from solar farms would probably end up costing less than oil currently does.
However...
It would provide a means of support for those nations in the future when the oil market finally went away - either through the development of less expensive alternative fuels, or when the oil reserves finally dried up. So when the collapse of the oil market finally does occur in the Middle East, it wouldn't hurt the Arab nations as badly. They'd still have SOME sort of economy, and a useful export, as opposed to the alternative which is to have none at all.
junior
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