Saudis Rebuff Bush As Oil Hits New High

President's Appeal For Increased Oil Production Again Rejected; Price Of Crude Tops $127

(CBS/AP)  President Bush's second stab this year at getting oil-rich Saudi Arabia to increase production and drive down the soaring gasoline prices hurting U.S. consumers appears to have again failed.

Saudi Arabian leaders made clear Friday they see no reason to increase oil production until their customers demand it, apparently rebuffing Mr. Bush, the White House said.

During Mr. Bush's second personal appeal this year to King Abdullah, Saudi officials stuck to their position that they are already meeting demand, the president's national security adviser told reporters.

"What they're saying to us is ... Saudi Arabia does not have customers that are making requests for oil that they are not able to satisfy," Stephen Hadley said on a day when oil prices topped $127 a barrel, a record high.

The Saudi government indicated that it is willing to put on the market whatever oil is necessary to meet the demand of its customers, Hadley said.

But even then, he said, Saudi leaders say increased production would not dramatically reduce pump prices in the United States.

When Mr. Bush met with King Abdullah in mid-January, the president asked Saudi Arabia to raise production to ease high prices at the pump. Mr. Bush got a chilly response to his plea. The kingdom said it would increase production only when the market justified it, and that production levels appeared normal.

The president said he'd ask again for more oil, but he and the king are much more likely to talk about Iran, CBS News senior White House correspondent Bill Plante reports. The Saudis share a real concern over Iran's nuclear ambitions and they wish the U.S. would do something about it.

When Air Force One landed in the Saudi capital on Friday for his one-day visit, the president got a red carpet welcome on the tarmac and was warmly greeted by Saudi leaders as a military band played the U.S. national anthem, slightly off-key.

Mr. Bush was spending the day with Abdullah at his horse farm outside Riyadh, talking mostly out of public view over three tea services and two meals.

The White House says the president's visit is intended, in part, to celebrate 75 years of formal U.S.-Saudi relations. It will mark the conclusion of several agreements, laying out intentions to cooperate on nuclear energy, infrastructure protection and nonproliferation. But the rising price of oil undoubtedly will overshadow the talks.

Mr. Bush concedes that raising output is difficult because the demand for oil - particularly from China and India - is stretching supplies. Besides, any production hike might not lower prices that much. Some economists say those prices are being driven up by increased demand, not slowed production.

Mr. Bush's visit to Saudi Arabia, which has the world's largest supply of oil, comes a day after Congress voted to temporarily halt daily shipments of 70,000 barrels of oil to the nation's emergency reserve. Mr. Bush has refused to stop pouring oil into the Strategic Petroleum Reserve, saying the stockpile was meant for emergencies and that halting the shipments would have little or no impact on gasoline or crude oil prices.

It's a move that Democrats have sought for the past year to increase supply and apply downward pressure on prices. With an eye to the November election, the Senate sent the measure to the president Wednesday night without a single GOP objection. The White House has indicated that Mr. Bush will sign the reserve measure.

Also, as Mr. Bush prepared to leave Washington, Senate Democrats introduced a resolution that would block $1.4 billion in arms sales to Saudi Arabia unless Riyadh agrees to increase its oil production by 1 million barrels per day. The Democrats said they introduced the measure to coincide with Mr. Bush's trip to send a message to Saudi Arabia that it should pump more oil to reduce the cost of gas for Americans.

High energy costs are a major drain on the U.S. economy, which is experiencing a slowdown that some think is already a recession. Oil prices are nearly $125 a barrel and gasoline threatens to go to $4 a gallon this summer.

Anthony Cordesman, a security analyst for the Center for Strategic and International Studies, said Abdullah may produce something "simply because it's good manners," but nothing that would have a significant effect.

"U.S. influence over OPEC and Gulf oil production is diminished," he said. "It's not clear what the incentive is to Saudi Arabia. We can't deliver on (Mideast) peace. We can't deliver on arms transfers. We can't deliver on the Iraq that Saudi Arabia wants. We are raising problems in terms of Iran. And the reality is the market isn't being driven by us; it's being driven by China, by India, by rising Asian demand."

Jon Alterman, director of the CSIS' Middle East program, said the Saudis, with a public that doesn't like Mr. Bush and a ruling monarchy with growing interests elsewhere, are not likely "to put themselves out to help this president."

"The Saudis don't have an alternative to keeping the U.S. in its corner, but their reliance on the United States, their confidence in the United States is extremely shaken," Alterman said.

Besides wanting to discuss oil, Mr. Bush is paying his second visit to Abdullah this year - on top of a stop by Vice President Dick Cheney in Saudi Arabia in March - to talk about his goal of achieving an Israeli-Palestinian peace deal before he leaves office. Saudi Arabia's immense power in the region means that its backing of Palestinian President Mahmoud Abbas and any concessions he will have to make is key.

The Saudi-American relationship began in the 1940s with a simple bargain: Saudi Arabia offered oil in return for U.S. protection. The United States became the kingdom's biggest trading partner and the Saudis became the biggest buyers of U.S. weapons. Many Saudis sent their children to American schools.

But over the years, issues arose.

Saudis, like other Arabs, feel Washington leans unfairly to Israel's side in the dispute with the Palestinians.

And Saudi-U.S. ties took their hardest hit after the Sept. 11, 2001, attacks, in which 15 the 19 airline hijackers were Saudis. Americans blamed Saudis for allowing the religious extremism that gave rise to the hijackers. Though anti-terror cooperation has been relatively strong since, Saudis still smart from what they feel are unfair accusations.

[on_alert247]

Cut the ties with extremism. Let the Saudis sell it to China and India while we develop a new economy built on self reliance and alternative energy sources. Tell them go to he!!.

[colonieny]

Runner: You may not know this, that IS. is a major supplier to the USA of Military software, only second to our own silicon valley. Without the brain power of little Israel, the USA would not be as strong.
Also you may not know: Little Israel did not receive any military aid from the USA until 1973, before then it was self sufficient and bought jets and so forth from FRANCE!
The USA is a decent country. We are a democracy. So is Israel. In fact, it is the only TRUE democracy in the entire Middle East. It is an example of how good life with freedom can be. Because of that, the irritated in the Middle East can not tolerate it.
Also, what we are seeing is not logical, it is a mind set , not like a Western mindset. Egypt can not accept that one of it''s planes went into the ocean because of a suicide piolet. The facts are there, but to lose face, honor, means well, rewrite the facts, We don''t understand this pre modern Cannanite Culture.

[runner4111]

Intolerant and hateful of what? Our great country wasting trillions of dollars on Israel who has not done one good thing for us except half of the world angry with us for our meaningless relationship with the nation? Yes I am intolerant of this. Why waste time on Israel? For what? So more extremists hate us for it? The previous guy was right-- why punish palestinians for what Hitler did-- they had nothing to do with him. Let Israel fend for itself and try something new by allying with the Saudis. I guarantee you if tell Israel to get out of Palestinian land the arabs would consider us heroes and the price of oil for Americans would plummett. I guarantee that. Who the h-ell is Israel anyway? Why would I or any average American give a rat''s a$$ about that? We want cheap fuel and safety.

[colonieny]

runner = patriot 9.
Just as our great country chose to support the brave people of Taiwan when Red China was about the invade, so they didn''t - because it was the right thing to do, and just as Americans came to the aid of South Korea, and we deliver aid to even our enemies in time of natural diasters ( think the back lands of Pakistan ), and we fight vs. even Christians who were fanatically killing Muslims in Kosovov ( because it was the right thing to do..0 and because we support freedom fighters ( see JFK''s speech) because we are a DECENT people. You bubble head do not know the history and tenor of your own country. I am assuming that you did not grow up here. Are you from an Islamic Country and immigrated here ? Just a guess, because you are very intolerant and hateful.

[runner4111]

For the record i think the Saudis have much more to offer as an ally than Israel, who offers us nothing.

[runner4111]

What I fail to understand is why this and alomst every previous administration goes so far out of their way to defend Israel, who has done absolutely nothign for us except eat away our tax dollars as we ship billions over there in aid, basically caused us 9-11, and make enemies all over the world.

I am a very patriotic American, snd this support of a worthless country has demised our country. How many UN resolutions are they in violation of? And why will they never sign the Nonprolif treaty?

Give the arabs that worthless land back and lets try something new. This *** isnt working. I want cheap fuel again and security knowing that half the wold doesnt want to kill us because of some worthless stip of land over there.

[colonieny]

concerning Patriot9: Well at least we all know where this guy is coming from. Thanks for the clarification.

[patriotic9]

Patriot9: You sound like such a bigot. If the Jews had a Temple there 2000 years ago, and Jesus was a Jew, and Jews have been there in great numbers since the beginning of history, and the Koran talks about killing Jews to convert them to Islam, and to run them off "Jewish lands and villages"(direct quote) - what makes you think this land is not Jewish ?
Posted by colonieNY at 01:47 PM : May 18, 2008

Dude, no land is jewish, christian, muslim, hindu, budhist, etc. Judaism is a religion and people should not be treated differently because of their RACE, RELIGION, SKIN COLOR, RACE, GENDER or SEXUAL ORIENTATION (Do you agree or disagree?).

If people were killed by Hitler in Germany, price should not have been paid by those Palestinians who can''t even speak the language spoken by Hitler.

If Concentration Camps were in Germany, there is no reason why Israel should have been founded in a completely different continent and country.

Who cares about Jesus, Muhammad, Moses, etc. This is 21st century. I am an American and care about America and American interest.

Why shouldn''t we help Arabs in the destruction of Israel to enjoy Oil in cheaper prices?

Why should we send more then $3 Billion a year to buy HATRED, TERRORISM and 9/11 for GOD-NEGLECTED AMERICANS and UNHOLY LAND "UNITED STATES"?

[colonieny]

Patriot9: You sound like such a bigot. If the Jews had a Temple there 2000 years ago, and Jesus was a Jew, and Jews have been there in great numbers since the beginning of history, and the Koran talks about killing Jews to convert them to Islam, and to run them off "Jewish lands and villages"(direct quote) - what makes you think this land is not Jewish ?
Your passion for justice is very short sited. Why are you not upset by the reduction of Christians in both GAZA and the West Bank, since the PLO and HAMAs have taken over ? These poor people have been forced to CONVERT to ISLAM religion ! Women are forced to wear the garb. and forced to marry Muslim men after being kidnapped ( this is common throughout all is the 57 Islamic States). No other religion is TOLERATED in any MuSLIM society.
The Hypocrisy on your part is startling.

[patriotic9]

Another proof of the fact that
"CHRISTIANITY is PSYCHOSIS and CHRISTIANS are PSYCHOTICS".
Psychotics christians continue supporting and protecting the existance of ISRAEL on the Palestinian land far away from the CONCENTRATION CAMPS in GERMANY and they expect ARABS to give them OIL in cheaper prices for supporting their those enemeis who were brought into Palestine after WWII to occupy the land of those Palestinians by force who had nothing to do with the actions of Hitler.

[underdogus]

The DemocRATS are playing Blacks for fools.....

and they''''re doing a pretty good job of it.

[rudy654-2009]

Can anybody answer with facts and expertise in the subject?




--------------------------------------------------------------------------------

Posted by factsearcher at 11:07 AM

In fact, California has had a hard time of it as the Federal Government is constantly sticking its nose in to prevent the implementation of new standards.

[beehive21-2009]

When did USA , stop taking what it needs,Why, has Saudi world not been made a state , Paying taxes on the Saudi oil boom ? When did we go in the wrong direction ? We as a Nation in the interest of Mankind , shall obtain Saudi World,for the good of the Earth.

[factsearcher]

Absolutely branlesssssss people on this postings,

[ranger1948]

truthyness
I don''t think it is just th blacks that they have played for fools. It is everyone out side the select regime.

[factsearcher]

As fuel prices continue their steady climb, plug-in hybrids might make more sense economically. Only last week, CIBC World Markets predicted that crude oil prices will soar to more than $200 (U.S.) a barrel over the next five years. That would mean a single fill-up, at $2.25 per litre, would cost more than $100 for an economy car like the Honda Fit or Toyota Yaris.

The only problem is that Toyota and GM, which are the leaders in alternative fuel explorations, are estimating mass production for these cars not sooner than 2010.
And so far, California is the only state that has emission rules mandated by a certain deadline.
Question: Why it is taking so long for the US to satisfy the demand of alternative fuel cars??????
Can anybody answer with facts and expertise in the subject?

[truthyness]

The Republicans are playing Blacks for fools.....

and they''re doing a pretty good job of it.

[kevboom]

So much for Bush''s speech about not appeasing one''s enemies. How many of the 9/11 hijackers were Saudis? Quite a few, as I recall. Maybe the next president won''t sell out his own people to oil interests, so we can tell the Saudis and OPEC where to shove it and rely on energy sources from domestic and allied interests. And don''t give me that b.s. about "liberals" blocking attempts to drill offshore and in Alaska, because the solution to the energy crisis isn''t enhanced production, pollution, and waste, it''s efficiency through technology we''ve had for decades but haven''t enforced because our government is in bed with oil companies that like to burn as much crude as possible.

[closethippy1]

After reading the entire article, and I wonder how many here did, it''s clear that there''s nothing OPEC can do to lower the price if demand for it is so high.
So it seems to me the best we can do is to demand of car companies to increase the milage in cars, and also to nationalize oil companies.
The problem here is how brainwashed many Americans have become about regulating these corporations.
To nationailize means to use a socialist measure to help the economy and Americans have been seen to drop dead on the spot whenever the word "socialism" was used in a conversation.
The regulation of car companies falls under the same category, I suppose.
Can''t have it both ways anymore, folks. We either put our government to good use to help us out, or just let corporations dictate to us how much money they want from us, and when the due date is.

[mmaza]

This administration has been nothing but a waste of space, time and money.They should start packing now and avoid the rush.