Saudis balk at Bush's request to increase oil production to bring prices down

[bigtree]

He should bring the billions in military aid he's brought along as an incentive for the Saudis back home with him . . .


Saudis balk at Bush's oil advice

They won't commit to increasing output, though the U.S. says such a move would be good for everybody.

Los Angeles Times
January 16, 2008

RIYADH, SAUDI ARABIA -- President Bush and Saudi leaders tangled Tuesday over the price of oil, with the president reminding this wealthy desert kingdom that U.S. purchases could fall if the American economy slips and with a Saudi official refusing to commit his country to greater production to reduce costs at the pump.

Bush said the price of oil, driven up by growing demand in the United States but an even greater increase in China and India, had become "painful for our consumers." He suggested that oil-producing nations open their spigots for their own good.

Producers should "realize that high energy prices affect the economies of consuming nations," he said. If those economies weaken, he said, they "will eventually be buying fewer barrels of oil."

Energy demand has "outstripped new supply," Bush told reporters. "That's why there's high price."

Saudi Oil Minister Ali Ibrahim Naimi said his country was sympathetic to such economic worries, but he refused to commit to increasing production.

"The concern for the U.S. economy is valid," he said. "But what affects the U.S. economy is more than the price of oil." Still, he added, "we don't want to see the U.S. economy go into recession in the future."

The oil minister held out the possibility that his country might at some point increase its output of oil, a step that might lower consumer prices.


When asked whether U.S. consumers would again see gasoline priced at $1 to $1.50 a gallon, he cracked: "If I knew that, I'd be in Las Vegas rather than here."

report: http://www.latimes.com/news/nationworld/world/la-fg-bush16jan16,1,3324255.story?coll=la-headlines-world&ctrack=1&cset=true

[RB TexLa]

1. There's no reason for them to increase production. Demand hasn't gone down.

If people are buying the same amount at higher prices the price is supported. The only reason to try to lower the price of your product is if you need to increase demand.

[sam sarrha]

3. there is no shortage..

[bigtree]

7. this demand argument is a canard. coming from Bush, it looks even more suspect

All of the sudden the prices spike when Bush gets in office and have stayed there. Oil companies making record profits and refusing to do what it takes to increase production, or build refineries, or any of the other excuses they've used for YEARS now to justify the higher prices. This is price gouging and profit-taking, pure and simple.

[sam sarrha]

2. just regulate hedge funds and speculators.. cut prices 25%

[melody]

4. And to think he said "pretty please"

Those big meanies.

[Ganja Ninja]

5. They knew Bush wasn't serious.

It was all for show and little Georgie doesn't want oil prices to go down any more than they do.

[SammyWinstonJack]

6. He's a funny guy!

When asked whether U.S. consumers would again see gasoline priced at $1 to $1.50, he cracked: "If I knew that, I'd be in Las Vegas rather than here."

Funny guy or just a smart ass. :shrug:

[zbdent]

8. Great jawboning, Georgie!

At least, the "ass" part was correct ...

[annabanana]

10. They are laughing at him (and us). . Hey we gotcher "free market" right HERE!

hahahahahahaaaaaa

[zbdent]

20. they're laughing with him ...

you understand ... Middle East oil is at $XXX per barrel ... US oil is at just a few dollars (if that) less ... which means, all the access that the US providers had before at low cost still have low cost to the access ... but the price of the product went way up ...

1997 oil prices in the $20s ... say production cost was $12 ...

2008 oil prices in the $90s ... production costs ... $12 ... MUCH more profit to the oil companies ... ya think that the oil company general employees would be allowed to share in that? (Unless they had stock sharing, they're screwed ...)

[ThomWV]

9. The road for cheaper oil leads to Dubai, not Saudi Arabia

Speculators.

[mcscajun]

11. Hey, George! Your buddies over there will let you watch their horses,

carry a sword, and hold onto their prize falcons, but remember WHO holds the jesses. Over there, it ain't you.

[Rosemary2205]

12. We don't need more OIL - we need less deficit spending on war

The problem is the dollar is less valuable than a sheet of Charmin.

[Blarch]

13. Thats right.

The Saudis are forced to accept the US dollar ..as the dollar falls, the price of oil goes up. The Saudis sure aren't going to take the hit.

[KharmaTrain]

14. Whose Telling Who What????

What a crock of transparent bullshit. There's too much greed and money to be made...and now more than ever. While the banking world collapses, oil remains one of the hedges for the rich. While Joe Sixpack's house goes into default, the pensions are raided or default due to greedy fund managers, is spending twice as much on fuel now than he did 5 years ago and better not even think of getting sick...this regime sees a year left on its fleecing of the treasury and turning big profits for its corporate enablers.

Wanna see prices drop? Slap a large windfall profits tax on the oil company's earning and then earmark that money strictly to alternative fuel development. The price will pop down to 1.50 in no time.

[TheCowsCameHome]

15. They probably crapped their robes from laughing so hard

at the pathetic little creep from Washington.

[Virginia Dare]

16. This oil dependency thing is working out quite well for junior..

and his saudi sugar daddies isn't it? Hey chimp, did you ask the King where his nephew Osama was in between the kisses and the sword play?

[gratuitous]

17. Little George begs pathetically, his Saudi masters just laugh

George was just auditioning for his next job, court jester in the House of Saud.

[SujiwanKenobee]

18. Why should they care?

If the US buys less, doesn't that leave more for India and China to buy and won't they ramp up their own purchasing?

[ThomWV]

23. Because as we fail all those trillions of US dollars they hold are becoming worthless

See? If they do not keep us afloat it means that all that 'money' of ours they are holding isn't worth the paper its printed on.

[MadHound]

19. It probably isn't a matter that they won't increase production

It is probably a matter that they can't increase production. There have been no large scale oil discoveries in the ME for over forty years. Saudi Arabia's largest field(world's largest also) is in serious decline, with oil workers having to pump in twice the volume of seawater than the volume of oil that comes out. A sure sign of an oil well drying up.

We really need to face up to the fact that we are running out of oil, at least oil that is halfway cheap and easy to get out of the ground. This means that we're going to be paying ever higher prices for it.

This is why we need to switch to alternatives like biodiesel. Biodiesel, using algae as the feedstock, can provide all of our transportation fuel needs. It is clean, and would provide farmers another cash crop to harvest, all without having to take up an acre of cropland. Many wastewater treatment plants already use algae as a first stage treatment process, this could be expanded.

But we've got to get off the oil addiction, otherwise we're going to go right over that cliff.

[CK_John]

21. IMO, they are at peak and could not increase production if they had to. n/t

[dysfunctional press]

22. they are LYING. they CANNOT raise production.

it's called "peak oil" and we're there.