If there is any nervousness at all that Arabia would undercut Canada and keep the price low just to prevent Canadian competition the answer to that would be for the government to simply guarantee to buy whatever the Sands produce at a base profitable price, say $42 for 20 years and resell it in the market. However I don’t think the Sauds will let the price fall to a rational level again. They know their dominance will end in the not too distant future and they are going to get the most they can get for their oil before it runs out.UAE is the model for rational planning over there, reinvesting all that oil wealth in all sorts of things. UAE is aking itself a very attractive target for conquest by any of its neighbors in a little while as it really begins to soar while the other ME countries run out of their cash cows.
There isn’t much available room for SA to up production enough that quickly to really damper prices to anywhere close to even $50 / barrel at the moment.