I'm sure the Arab states could just sell more to the Soviets or something like that.
Two problems with that:
1. The Arabs were net food importers and the West can survive a lot better without oil, than the Arabs can without food. Especially since the West does have other sources of oil. Venezuela and the like will be doing rather well in TTL until the Arabs cool down.
2. The Soviets were net oil exporters not importers. A continuing embargo would be great for them as they'll be making bank from the higher oil prices, but they'd hardly buy anything they already produce a surplus of. They also can't help the Arabs with the food situation as they had preciously little to spare.
Other things that'll happen:
- Western Counterespionage Departments will be putting environmentalist organisations under a microscope to get proof of links between the USSR and anti-nuclear-power groups. Newspapers are leaned on to stop parroting environmentalist doom-mongering and actually report on how the USSR is using them to prevent NATO from achieving energy independence. Same for anti-North-Sea-Oil-drilling environmentalists. Over the next year North Sea Oil production expands as fast as new rigs can be built and personnel be trained. Nuclear power takes off.
- Investments in research to develop fracking starts early and is heavily subsidized
- Once Nuclear power starts being expanded, feasibility of electricity powered cars is explored much earlier and with more vigor. For the interim expect more electricity powered trains and inner city public transportation. Not just subways, also expect to see widespread use of Trolleybuses. The latter also making an appearance in local transport in smaller towns.