Posted on 05/13/2008 5:01:26 AM PDT by kellynla
President Bush said Monday that when he meets Saudi Arabia's King Abdullah later this week, he'll bring up the effect that high oil prices are having on the U.S. and global economies.
"Of course I'll bring it up to him," Bush said in a CBS News radio interview. However, he added that the capacity of the Saudis to raise production — and thus help lower prices — is limited.
"When you analyze the capacity for countries to put oil on the market it's just not like it used to be," Bush said. "The demand for oil is so high relative to supply these days that there's just not a lot of excess capacity."
However, Saudi Arabia has considerable additional production capacity. It's pumping a little over 8.5 million barrels a day, compared with about 9.5 million barrels a day two years ago, and has acknowledged the ability to produce as much as 11 million barrels a day.
When Bush last met with the king in January, they also talked about high oil prices. At the time, Bush was hopeful that OPEC would authorize an increase in oil production. The kingdom holds the world's largest oil supplies and is a major voice in decisions by OPEC.
Asked what he planned to tell the Saudis this time that he didn't tell them last time, Bush observed that "the price is even higher."
Oil prices briefly spiked to a new record above $126 a barrel Monday but ended the day lower as investors cashed in profits and an earthquake in China raised the possibility of a drop in demand. Retail gas prices, meanwhile, rose to another record above $3.70 a gallon.
White House spokeswoman Dana Perino also said Bush would raise the topic.
"Will he ask the Saudis to consider the drain on the world economy because of high gas prices? Yes, of course. He raises it every time that he can," Perino said.
In the interview, Bush also said that most oil imported into the United States "comes from Canada and Mexico," not from Saudi Arabia.
Bush also said that, while he was a "big supporter" of energy conservation, he would not issue a specific appeal to the public to ease up on driving and not use as much fuel. "I think they can figure out how to do that," he told CBS. "I mean, the market has a way of convincing people to drive less, depending on their ability to afford."
Republican Senators Offer Bill to Increase US Supplies (S.2958)
http://www.freerepublic.com/focus/f-news/2014187/posts
Domenici, Senate Republicans Unveil Plan to Increase Domestic Production ( S.2958 )
http://www.freerepublic.com/focus/f-news/2014017/posts
Oil Economics 101 (American Energy Production Act of 2008)
http://www.freerepublic.com/focus/f-news/2014015/posts
We need this bill passed & signed into law.
And we need it NOW!
You can contact your senators here:
http://www.senate.gov/general/contact_information/senators_cfm
ping
I’d rather see this title to a news release, “President Bush to expand domestic oil production and to tell Saudis to go to hell.”
The oil bubble is about to explode giving the dims the recession they must have to win the presidency. /barf
“Sir, we’d like you to help make the moneytrain that is pouring out of the USA run even faster by increasing production. Respectfully, Sir.”
“Of course I’ll bring it up to him,” Bush said in a CBS News radio interview.
Hmmmm... I don’t see the part where CBS asked him if he’ll talk to Congress about expanding domestic production and refining. Surely CBS is in search of the whole truth...
Bottom line? There is a glut of oil. While demand remains firm in China and the Middle East, it has been contracting significantly in the developed world. If this were a simple case of supply and demand, gas prices would be tanking.
http://www.whitehouse.gov/news/releases/2001/03/20010320-1.html
The piece of good news in their decision was that the Saudi minister made it clear that he and his friends would not allow the price of oil, crude oil to exceed $28 a barrel. That's very comforting to the American consumer, and I appreciate that gesture. I thought that was a very strong statement of understanding, that high prices of crude oil will affect our economy.
Having said that, it's important for American consumers to understand that if we have a price spike in refined product, it's not going to be because of the price of crude oil being at $25 or $26 a barrel. It's going to be because we don't have enough capacity, refining capacity — we're not generating enough product. And that's another issue that we'll be dealing with, is how to make sure we can get refined product to our consumers.
Q So this cut in production won't have an impact on gasoline prices this summer?
THE PRESIDENT: We don't think so. We think that the major — the major impact on gasoline prices, if they go up, is a result of not generating enough supply, enough refined product to meet the demand of U.S. drivers. And we haven't built a refining in 25 years in America. We're not generating enough gasoline to meet demands. It's the same as natural gas. We're not exploring for enough natural gas to meet demand; we're not building enough power generating plants to meet demand, and we're beginning to pay the price for it.
America has got to understand that energy is an issue and we're going to deal with it.
Where?
End of Quarter and Year, Most Recent Quarters and Years, Selected OECD Countries, Total OECD, Stocks for Export and Afloat, and Commercial Floating Stocks
http://www.eia.doe.gov/emeu/ipsr/t23.xls
The same report also says:
World demand is now estimated at 86.0 mb/d in 2007. In 2008, demand is expected to reach 87.2 mb/d (+1.5% or +1.3 mb/d over 2007)
INTERNATIONAL ENERGY AGENCY - OIL MARKET REPORT
4 11 APRIL 2008, DEMAND
http://omrpublic.iea.org/omrarchive/11apr08dem.pdf
US crude stocks rose by 5.7 million barrels to 325.6 million barrels for the week ending 2 May - much better than expected.
Before our President plays ineffectual smooch-butt with our Muzzie “friends” again, let me just say:
* Conserve
* Drill / Build refineries
* A solar panel array on every home on which it’s practical: the new victory garden
* Wind/Solar/Geo/NUCLEAR
* Demand OIL from Mexico to compensate for all the illegal alien upkeep (Michael Savage’s idea — a good one)
We need to get OFF of the Muzzie/Chavez oil teat... NOW. ASAP.
BUSH Statement made following the 2001 meeting with Saudi minister.....
“The Saudi minister made it clear that he and his friends would not allow the price of oil, crude oil to exceed $28 a barrel. That’s very comforting to the American consumer, and I appreciate that gesture. I thought that was a very strong statement of understanding, that high prices of crude oil will affect our economy.” George Bush, March 2001
...don’t argue with thacney, his charts know everything.
So stocks rose by about a 6.6 hour supply. Exceeding low expectations is not the same as a great improvement.
We used to keep a much better supply on hand and we are about half of what the rest of the industrialized world has.
U.S. Crude Oil excluding SPR Days of Supply
http://tonto.eia.doe.gov/dnav/pet/hist/w_epc0_vsd_nus_daysw.htm
I will consider my life complete when I prove thackney wrong!
I am often wrong, just ask my wife and children.
Bush urges OPEC to pump more oil (Hat in Hand, Begs Saudis for More Oil)
Saudis put oil capacity rise on hold
Bush does have one bargaining chip though:
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