Holy smoly. The price oughta drop real quick with that news. Bush must be twisting some Saudi arms.
The Saudis are pulling the same trick they used in the 80s. This is a determined effort to cashier any alternative fuel schemes.
If the saudis can ramp up oil production -- they can kill the price of oil and thereby collapse the demand for alternate forms of energy.
they did the same thing back in the early 80's.
I think the price of oil will go down but I don't think the demand for alternate forms of energy will dissipate.
There are now two drivers for alternate forms of energy. From the left comes the worries about the environment. from the right comes worries about security. These are now fixtures.
Bush to bash Saudis over oil price (April, 05)
"Saudi Arabia would double its investment in energy to $US50 billion over the next five years, raising pumping capacity to 12.5 million barrels a day by 2009."
Except that people who really follow this market, it isn't news. This is long existing, previously published news. It just is getting picked up now by the drive-by media.