Archive for Monday, June 23, 2008

Saudis pledge to produce more oil ‘if necessary’

June 23, 2008

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— Facing strong U.S. pressure and global dismay over oil prices, Saudi Arabia said Sunday it will produce more crude this year if the market needs it. But the vague pledge fell far short of U.S. hopes for a specific increase and may do little to lower prices immediately.

For now, the current "oil shock" leaves Western countries with little choice but to move toward nuclear power and change their energy-consumption habits, Britain's prime minister warned at a rare meeting of 35 oil-producing and consuming nations.

Saudi Arabia - the world's top crude exporter - called the gathering Sunday to send a message that it, too, is concerned by high oil prices inflicting economic pain worldwide.

Instead, the meeting highlighted the sharp disagreement between producers like Saudi Arabia and consuming countries like Britain and the United States over the core factors driving steep price hikes. Oil closed near $135 a barrel on Friday - almost double the price a year ago.

The U.S. and other nations argue that oil production has not kept up with increasing demand, especially from China, India and the Middle East. But Saudi Arabia and other OPEC countries say there is no shortage of oil and instead blame financial speculation and the falling U.S. dollar.

Saudi Oil Minister Ali al-Naimi said the kingdom is willing to produce more than the 9.7 million barrels of oil a day it had already planned to produce in July - if the market requires it.

But the Saudi oil minister also blamed speculators and asserted supply is not the problem.

"In today's environment, I am convinced that supply and demand balances and crude oil production levels are not the primary drivers of the current market situation," al-Naimi said.

King Abdullah also said Saudi Arabia is not the culprit.

The king cited several factors driving "the unjustified, swift rise in oil prices" including "speculators who play the market out of selfish interests."

U.S. Energy Secretary Samuel Bodman, however, said earlier that U.S. officials had found no evidence speculators are driving up prices.

Saudi officials have consistently said the country would provide enough oil to supply the market. The kingdom announced a 300,000 barrel per day increase in May and said before the start of the Jiddah meeting that it would add another 200,000 barrels per day in July, raising total daily output to 9.7 million barrels.

Comments

RedwoodCoast 6 years, 10 months ago

Log: Exactly! We are not using our brains here. Energy is a politicized issue that should not be politicized at all; it affects every one of us. If we put half the money we're spending on fossil fuel exploration and extraction, we might actually be getting somewhere with alternative energies. Mr. Nancy: I've said this before, but do you realize why we're getting nowhere? Obstructionist? Screwing things up for everyone else? Give me a break. You can't be serious. Who is advocating alternatives and who is obstructing? It is no secret that conservatives advocate more oil drilling and exploration, while liberals are saying 'no' to that and advocating alternatives. From my point of view, the conservative element in America is the obstructionist entity that is screwing things up for the rest of us. Funny way you have.

boltzmann 6 years, 10 months ago

I heard a good comment the other day... Drilling for more oil to solve our energy problems is like trying to solve the obesity problem by opening more fast food restaurants.

RomanNose 6 years, 10 months ago

"Saudi Arabia - the world's top crude exporter - called the gathering Sunday to send a message that it, too, is concerned by high oil prices inflicting economic pain worldwide."Which is funny considering they pay 34 cents a gallon.

RedwoodCoast 6 years, 10 months ago

Clarification: If we put half the money we're spending on fossil fuel exploration and extraction into development of alternatives, we might actually be getting somewhere with alternative energies.

bd 6 years, 10 months ago

Too bad we can't hold the world hostige with our food!Oh, that would not be morally right!Food-gasGas-food.Guess that shows the difference between us and them!

just_another_bozo_on_this_bus 6 years, 10 months ago

"These folks that sing the praises of 25-year old sedans and their low insurance rates"I think it's fine advice to find the cheapest car available, even if the gas mileage isn't very good-- provided, of course, that such buyers are also finding ways to dramatically reduce the number of miles they drive-- by taking the bus, riding their bike or just walking more than they previously had.

Jcjayhawk1 6 years, 10 months ago

We do not have the refinery capacity. EPA blocks construction of new refineries. Refineries take 10+ years to pay for themselves. Increase oil imports & drilling ? They do nothing to help our capacity. You can only refine so much at a time. Nuclear energy. It's not the ONLY answer but it is part of the solution.

BigAl 6 years, 10 months ago

Nancy Boy. There are already 65 million off-shore acres approved for drilling. Why do we need more when we already have this that isn't being tapped? The Republicans seem to have a very difficult time answering this question. Also, according to O'Reilly, Iraq is pumping oil at something like 2 million gals a day. Why are we not tapping into that? Remember, according to Bush/Cheney, this Iraqi war was going to be paid for with Iraqi oil.

notajayhawk 6 years, 10 months ago

logrithmic (Anonymous) says:"Why would you blame a critic of the current energy situation you and your rightwing minions created?"Leftwingers don't use petroleum products? (The computer you're using is made of wood or stone?)"Did I have anything to do with large SUVs and trucks populating the highways of America?"Leftwingers don't drive SUV's?"Was I responsible for industrial agriculture and its dependence on fossil fuels?"Leftwingers don't eat?"Am I responsible for the population boom around the planet that is so straining the resouces of the world?"Leftwingers don't ... breed? (We could only wish.)"To a small extent, I am probably responsible. But that's only because I listened to our government."Well, at least we've confirmed what we knew all along: Leftwingers are gullible."If I'm responsible to a small degree, your rightwingers are responsible to a large degree, having held the White House for 20 of the last 28 years..." yada yada yada blah blah blah.Yes, that's right, log, we only drive SUV's, farm with technology, or reproduce because Republican politicians made us do it.Have you considered some professional help? If not for some medication that might help some of those delusions, maybe a mechanic who could loosen that tinfoil hat?

TopJayhawk 6 years, 10 months ago

Agno, acutually I agree with most of what you say. It is insanity to continue to look to oil to save us. However, you keep blaming republicans. I think both sides of the aisle are at fault. What was Clintons evergy policy, how did it help us? Fact: No side has been helpfull in this issue. All are to blame. Oil speculators are mostly to blame for this including George Soros.

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