RIYADH, Saudi Arabia, Jan. 15, 2008
Bush, Saudis Clash Over Oil Prices
Saudi Oil Minister Rebuffs President's Plea To OPEC Giant For Oil Production Increase
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President Bush attends a roundtable discussion with Saudi entrepreneurs at the U.S. Embassy in Riyadh, Saudi Arabia, Tuesday, Jan. 15, 2008. (AP)
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President Bush, left, holds the King Abdul Aziz Order of Merit that was presented to him by Saudi King Abdullah, right, at Riyadh Palace, Monday, Jan. 14, 2008 in Riyadh, Saudi Arabia. (AP Photo/Pablo Martinez Monsivais)
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President George W. Bush, center, watches dancers perform during a visit to the Sheikh Saeed Al Maktoum House, Monday, Jan. 14, 2008 in Dubai, United Arabs Emirates. Sitting next to Bush on the right is United Arab Emirates Vice President Mohammed bin Rashid Al Maktoum. (AP Photo/Pablo Martinez Monsivais)
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Play CBS Video Video Bush: Iran Sponsors Terror In a visit to the oil rich fields of Abu Dhabi, President Bush delivered a speech in which he declares Iran to be a harbinger of terrorism for this region. Bill Plante reports from Abu Dhabi.
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Video Bush Mideast Tour Moves On President Bush has left Israel promising a peace agreement before he leaves office. He now moves on to Kuwait. Harry Smith speaks with Michael O'Hanlon of the Brookings Institution.
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Video Bush Hopes To Broker Peace In his first trip to the region as president, Bush met one-on-one with the heads of Israel and will sit down with Palestinian leaders hoping to uncover some common ground. Susan Roberts reports.
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Interactive Globetrotting Follow President Bush as he travels around the globe.
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Photo Essay Heart Of Oil Country President Bush visits several oil-rich nations during his Mideast trip.
"High energy prices can damage consuming economies," the president told a small group of reporters traveling with him in the Mideast.
"It's affected our families. Paying more for gasoline hurts some of the American families, and I'll make that clear to him," said Mr. Bush, heading into more talks with Saudi King Abdullah. Shortly after Mr. Bush spoke, the Saudi oil minister said the kingdom, responsible for almost one-third of the cartel's total output, would raise oil production when the market justified it.
"Our interest is to keep oil supplies matching demand with minimum volatility in the oil market," Oil Minister Ali Naimi told reporters. "We will raise production when the market justifies it. This is our policy."
Naimi said inventory levels appear to be "normal," adding, "we want the inventories to be healthful, but we don't want it to be extremely high or extremely low."
Naimi said the U.S. economy is significant to the oil market and demand. "I'm sure no one will look with pleasure on a recession in the U.S. On the contrary, all our effort is to maintain prosperity and growth in all countries, particularly the number one consuming nation in the world," he said.
But the minister said oil is not the only reason for the slowing U.S. economy. "The concern for the U.S. economy is valid, but what affects the U.S. economy is more than the supply of oil," he said.
In a stern warning to Iran days after a Jan. 6 confrontation with U.S. warships in the Persian Gulf, Mr. Bush put Tehran on notice that it needs to be careful. The president said it would not matter to him whether an attack against an American vessel resulted from an order by the government in Iran or a rash decision by an Iranian boat captain.
"It's not going to matter to me one way or another," Mr. Bush said. If the Iranians hit a U.S. ship, "there are going to be serious consequences," he said.
U.S. officials claim Iranian speedboats swarmed three Navy warships in the Strait of Hormuz, the narrow waterway that is the only entry and exit to the Persian Gulf. They said U.S. Navy commanders were considering firing warning shots, before the retreat of the five Iranian speedboats, which the Pentagon said were operated by the elite Revolutionary Guards.
Iran has denied that its boats threatened the U.S. vessels, saying the incident was a normal occurrence, and accused Washington of fabricating video and audio it released. Iran's government has released its own video, which appeared to be shot from a small boat bobbing at least 100 yards from the American warships.
The president spoke to reporters before meeting late Tuesday with Abdullah, whose country holds the world's largest supply of oil. Mr. Bush said U.S. consumers are feeling the pain of rising oil prices, which topped $100 a barrel this month.
"When consumers have less purchasing power, it could cause the economy to slow down," Mr. Bush said. "I hope OPEC nations put more supply on the market," he added. "It would be helpful."
The Organization of Petroleum Exporting Countries next meets Feb. 1 in Vienna, Austria, to consider increasing output. OPEC oil accounts for about 40 percent of the world's needs, and OPEC ministers often follow the lead of the Saudis when discussing whether to increase production to take the pressure off rising prices. The Saudis' views carry great weight because of its large share of output.
At the same time, he acknowledged that the higher prices reflect supply and demand, and that there is little excess capacity in the marketplace. Mr. Bush said a growing demand for oil, especially from fast-growing India and China, is straining supply and lifting prices.
"Oil is commodity," he said. "It isn't something that you just turn on a tap. It requires investment, exploration, a lot of capital."
"A lot of these oil producing countries are full out" in terms of what they can produce, he said.
Asked whether he thought the U.S. economy was sliding toward recession, as some economists predict, Mr. Bush said, "These are times of economic uncertainty, but I have confidence in the future." He said the underpinnings of the economy were strong, and "I'm optimistic."
His administration and Congress are looking at ways to give the economy a boost. Options include tax cuts, tax rebates and other incentives. Asked what steps he believed were necessary, Mr. Bush said: "We're going to watch very carefully."
The pressure over oil prices came a day after President Bush delivered a sophisticated weapons sale for Saudi Arabia, trying to bolster defenses against threats from Iran and muster support in the oil-rich kingdom for a long-stalled Mideast peace agreement.
Meanwhile, Secretary of State Condoleezza Rice, traveling with Mr. Bush in the Mideast, slipped away from the Saudi capital at 6:40 a.m. Tuesday for a quick trip to Iraq. Mr. Bush said he had been encouraged by signs of progress in Baghdad and decided that she could "help push the momentum by her very presence."
Mr. Bush said he would not go to Iraq while traveling in the region. There had been widespread speculation he would make a visit.
One of the primary objectives of trip is to build support for the Israeli-Palestinian peace process. He said that Abdullah asked him why he was optimistic about securing an agreement before his White House term ends in January 2009.
"Part of my mission was to make clear why talks failed in the past. There wasn't participation by the neighbors," Mr. Bush said, referring to Arab countries that have kept an arm's length from the negotiations.
Mr. Bush said he was convinced that the Arab leaders want to see the creation of a Palestinian state in a peace agreement with Israel. "They definitely want it to happen," he said, "and they questioned the seriousness of the United States to remain involved in what has been a long and frustrating process."
"They want to see a deal done," he said. "The issue frustrates them."
Mr. Bush spoke to the group of reporters while sitting in a chair under a gold and crystal chandelier in an ornate room of the kingdom's guest palace. Mr. Bush said he has faced persistent questions during his trip about a new U.S. intelligence estimate that said Iran had abandoned its nuclear weapons program in 2003. That conclusion contradicted Mr. Bush's claim that Iran was pursuing nuclear weapons and raised questions in the Mideast about U.S. intentions toward Iran.
Earlier, Mr. Bush spoke before meeting with Saudi business owners, many of them young and educated in the United States. He then visited al-Murabba Palace and The National Museum, stopping in a gallery describing the Prophet Muhammad's life.
Afterward, he was traveling to Al Janadriyah Farm, the king's country retreat where he maintains 150 Arabian stallions. That trip repays the two visits that the king, while crown prince, made to Bush's ranch in Crawford, Texas, in 2002 and 2005.
© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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See all 302 CommentsIn the Daily telegraph, July 22, 2007 Condoleeza Rice stated her main objective in the middle east was not to push a ceasefire in Lebanon, but to cause an isolation of Syria and Iran. The strategic objective is all tied to oil and oil pipelines.
The Israel Turkey pipeline has been in the works for some time now. In April of 2006 Israel & Turkey made their announcement which included four pipelines which will bypass Syria & Lebanon. The source of the oil is the BTC pipeline from the Caspian Sea Region. Shareholders in the BTC pipeline are: British Petroleum, AzBTC, Chevron, Statoil, TPAO, ENI, Total, Itochu, INPEX, ConocoPhillips & Amerada Hess. Another very important factor on the war with Lebanon is that Israel will have a strategic role in protecting the pipeline and transportation corridor out of Ceyhan Turkey. The strategy will weaken Russian oil%u2019s role in central asia and also isolate Iran.
Guess other countries do not see our economic slow down as necessarily "bad" for them. Sort of like we don''t see our unprovoked wars on other countries as "harmful" to us. When the bottom line is how only one group feels--then the possibility for pain, suffering and atrocities is limitless--witness any sociopath--It truly takes a very self centered country to care only about itself and thumb its nose at the consequences to everyone else.
In the best of all worlds--America would reap what we have sown. It''s harvest time and I don''t think we will like our crops.
Dear Mr. RowdyTexan - How much time do you think we should allow your New Liberal Congress to take on these problems for Mr. & Mrs. America?? & World. I''m sure they had no ideeaar of what was going on so we can allow for ignorance.
You Wrote: The Green Machine is doing everything they can to encourage us to wean off oil.
Your Green, Global Warming, Kyoti, UN Teams should be commended. We should reduce our dependence on Oil. The esculating prices on Oil, Gasoline, Heating, Food & The Basics are all part of your Agenda. Should Help when the prices goes high enough to reach that level.
Not to mention reducing the Earth population, by whatever programs that can be created in the hearts of men. Abortions, Conflicts, Ethnic Cleasings, Hunger, Disease, etc. I know we should be doing more of the above but it should make you feel better knowing that you''re doing the best you can.
Maybe we should wait after all it''s an election year and we can continue to play the blame game.
It can only get better when your Liberal Congress gets together with Bill, Hillary, Al & Co after election to impliment this Agenda.
In the meantime - fool us once shame on me - fool me twice just get used to it and expect more.
I can hear the CLINTON''S & Entourage CACKLING in the background.
Hey *********** what happened to the conservative congress not doing anything for five years.
Mr rharrin1 - I agree much more should have been researched, anticipated & done??? by everyone at that level.
However those same Liberals that were in office during this time are still there & I''m sure were aware of the implications.
What is the one of first things your New Congress made a priority? By ignoring the existing potential problems for Mr. & Mrs. America and focusing on passing for Your Friends a Special Hate Crimes Bill, While venting & taking out their hostilities on Mr. & Mrs. America.
Also making a case to pass legislation in order to restrict Grassroots America from having contact with their Representatives & Others to get the rest of the story.
How much time & when do you think the People & Economy should be considered?? I know, you say, why right now during an election year.
Fool me once shame on me - Fool me twice - just get used to it and expect more of the same.
I can hear the CLINTON''S CACKLING now!
Posted by UserVerified
Hmm, good point.
In the Daily telegraph, July 22, 2006 Condoleeza Rice stated her main objective in the middle east was not to push a ceasefire in Lebanon, but to cause an isolation of Syria and Iran. The strategic objective is all tied to oil and oil pipelines. In April of 2006 Israel & Turkey made their announcement which included four pipelines which will bypass Syria & Lebanon. The source of the oil is the BTC pipeline from the Caspian Sea Region. Shareholders in the BTC pipeline are: British Petroleum, AzBTC, Chevron, Statoil, TPAO, ENI, Total, Itochu, INPEX, Conoco-Phillips & Amerada Hess. Another very important factor on the war with Lebanon is that Israel will have a strategic role in protecting the pipeline and transportation corridor out of Ceyhan Turkey. The strategy will weaken Russian oil''s role in central asia and also isolate Iran.
That is the same look he had in the school on 9-11.
Bush on Rice in Middle East.
That''s the REAL story.
Most of the world experienced a collective sigh of relief recently when the Bush administration released the conclusions of a National Intelligence Estimate on Iran, and the collective judgment of U.S. intelligence officials is that Iran halted its nuclear-weapons program more than four years ago. Without an imminent nuclear threat, the neocon dream of a military confrontation with Iran seemed effectively off the table.
Of course, that%u2019s only true if the president is willing to take the NIE seriously. There%u2019s growing evidence that he does not.
[I]n private conversations with Israeli Prime Minister Ehud Olmert last week, the president all but disowned the document, said a senior administration official who accompanied Bush on his six-nation trip to the Mideast. %u201CHe told the Israelis that he can%u2019t control what the intelligence community says, but that [the NIE%u2019s] conclusions don%u2019t reflect his own views%u201D about Iran%u2019s nuclear-weapons program, said the official, who would discuss intelligence matters only on the condition of anonymity.
Posted by tbweb at 11:08 PM : Jan 15, 2008
The check is in the mail?
Drill off the coast of California and Florida too.
Posted by AJMarine1 at 10:42 PM : Jan 15, 2008,,,
Can''t we just scoop the millions of gallons of oil off the surface spilled by that Chinese tanker in San Francisco Bay and use that instead? And when are the Chinese going to send the check to clean it up? Hmmm ...
I have noticed this about some other things in California. They don''t want to do anything to dirty up their state, but will import energy that is made in other states.
Posted by AJMarine1 at 10:42 PM : Jan 15, 2008
..........
Drilling off the coast of California will never happen. The environazis have a stranglehold on the Democratic Party here in CA. Common sense is too scarce in California enough to counteract their death grip unfortunately. However, no contender for the state Assembly, Senate, or Governorship, could ever... even hint at the possibility of conducting studies of off-shore drilling! Show me a politician who supports off-shore drilling in California, and I''ll show you a politician who DOES NOT have a job in California!
Sadly, the environazis are too retarded to realize that the oil rigs would be so far off the coast of California, that they would NOT be viewable from the coast line. The supposed ecological damage that could be done by the oil rigs (assuming no major spills or leaks) is not scientifically measurable enough to completely throw off the eco system in the Pacific Ocean.
Suffice to say...
...the environazis, just like the Neo-Cons, know exactly how to pull at the heart-strings of the uneducated electorate just enough to keep themselves in power, in OUR political system.
Posted by katg21 at 10:37 PM : Jan 15, 2008
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I really think there are many more V8 engines out here than in the 60''s. There are also new V10''s.
If I look around, SUV''s outnumber cars, only one person inside. Fed gas tax may go up to 40c/gal.
My point is those with the SUV''s, large pickups and vehicles with low mileage will continue to drive (alone) no matter what fuel the future brings.
Drill off the coast of California and Florida too.
Posted by samsel3 at 10:10 PM : Jan 15, 2008
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Does that mean the lame duck has enough sojerboys to guard every 20 yards of those pipelines from bombs?
Posted by samsel3 at 10:10 PM : Jan 15, 2008
And this is a bad thing?
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