Bush Pushes; Will Oil Costs Budge?
President Meets With Crown Prince Abdullah At Texas Ranch
-
Play CBS Video Video Bush Lobbies Saudi Prince President Bush met with Saudi Arabia's Prince Abdullah, but the pair couldn't agree on a way to alleviate American gas prices. Anthony Mason asks: Does it come down to pumping or refining?
-
Video Bush: Talks Of Energy On his way to meet Saudi Arabia's Crown Prince Abdullah, President Bush told reporters some of the topics, such as oil prices, he may discuss.
-
-
Mr. Bush greets Saudi Crown Prince Abdullah at his ranch in Crawford, Texas April 25, 2005. President Bush is seeking relief from record-high gas prices. (AP)
-
Saudi Crown Prince Abdullah picks up some snacks (but no gas!) on his way out of town during a stop at the Coffee Station Restaurant in Crawford, Texas Monday, April 25, 2005. (AP)
-
President Bush and Saudi Crown Prince Abdullah walk through the Texas bluebonnets at Mr. Bush's Crawford Ranch. (AP)
-
-
Interactive Gas Prices State-by-state averages, tips to improve mileage and a look at what fuels prices at the pump.
-
Interactive Eye On Energy Explore the production and consumption of energy in the U.S. Find out more about energy costs, and the use of fossil fuels, nuclear power and renewable energy sources.
-
Fast Facts Saudi Arabia Learn about the people, economy and history.
"A high oil price will damage markets and he knows that," Mr. Bush said of Abdullah, the de facto leader of the desert kingdom.
Asked whether pump prices would drop, Bush said that would depend on supply and demand.
"One thing is for certain: The price of crude is driving the price of gasoline," Mr. Bush said. "The price of crude is up because not only is our economy growing, but economies such as India and China's economies are growing."
Saudi Arabia has outlined a plan to increase production capacity to 12.5 million barrels a day by 2009 from the current 11 million limit. Saudi Arabia now pumps about 9.5 million barrels daily. If necessary, Saudi Arabia says it will eventually develop a capacity of 15 million barrels a day.
But pumping capacity might not be the problem to any lack of gasoline in America. CBS News Correspondent Anthony Mason reports that Saudis say if they produced more, the United States wouldn't have the capacity to refine it.
"It will not make a difference if Saudi Arabia ships an extra million or two million barrels of crude oil to the United States if you cannot refine it," Adel Al Jubeir, Saudi spokesman, said. "It will not turn into gasoline and that will not turn into lower prices."
Mason reports that while building more refineries might seem like an easy solution, due to environmental regulations, one has not been built in the United States for more than 30 years.
In other oil-related developments:
Oil-market employees are watching the pumps and Mr. Bush's meeting even closer than consumers.
"The President is asking the Saudis, 'hey, I don't know how much excess oil you have, but if you have more, you should be pumping it,'" Alaron Trading Energy Analyst Phil Flynn told Mason.
National Security Adviser Stephen Hadley said the plan could be seen as positive news by financial markets.
"The problem in the oil market now is a perception that there is inadequate capacity," Hadley said. Reassurance that can be given to the market on available supply, he said, should "have a downward pressure on the price."
On another economic issue, the United States and Saudi Arabia are on the verge of a bilateral trade agreement that would allow the Gulf nation to join the World Trade Organization, "god willing by the end of the year," said Abdullah's foreign affairs adviser, Adel Al Jubeir, told reporters.
Other pressing issues, including terrorism, prospects for peace between the Israelis and Palestinians, Syria's future role in Lebanon and democratic change in the Middle East filled the leaders' meeting and discussion over lunch. They agreed to set up a high-level committee, headed by Secretary of State Condoleezza Rice and the Saudi foreign minister, to deal with strategic issues.
Spreading democracy is a second-term goal that could affect Bush's legacy, yet high gas prices are a drag on his popularity right now.
©MMV, CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.The Associated Press contributed to this report.
More From Politics
Mike Huckabee on GOP "rock stars," 2012, health care reform and more.
