But using renewable energy at home would allow for more oil to be exported. That should be pretty beneficial to the region.
He said "...when the oil industry starts to implode" which is referring to the eventuality that the oil will run out since it is a finite resource. Saudi Arabia won't run out for a long time, but Iran isn't quite so lucky. Iran's limited supply combined with China's outrageous consumption will only end in economic depression sooner or later.
If the oil industry is imploding why would they fear its replacement? I think, and hopefully Tausami jumps in to clarify, that he meant the development of renewable energy before the oil is running out.
They fear it's replacement because solar power won't pay the bills.
By imploding, I think it's meant that oil is no longer profitable/possible to produce to sustain your nation's economy. As such, your budget goes to shit, your people go poor, and the entire region destabilizes as people use the opportunity to mobilize the massive force of desperate and angry people around a common enemy (Jews or America).
I hope, when oil does crumble, that the entire middle east attacks Israel again and the US, not giving anymore fucks about oil in the middle east, leaves them to their own fate.