The silver lining of Palestinian statehood?

In an interview with Foreign Policy magazine, Israel's ambassador to the U.S. Michael Oren said that the establishment of a Palestinian state (h"v) could alter the status of all existing agreements between the Palestinian Authority, the U.S. and Israel. According to Oren, Israel has agreements with the P.A., not with the 'government of Palestine'. Agreements that could be "put at risk" include treaties on security cooperation, economic and even water-sharing. "The Palestinians risk all that has been achieved if they go forward with this...and that would be a great tragedy," Oren said.