Saudi Arabia Bullish On Oil's Future

Kingdom's Oil Minister Tells 60 Minutes U.S. Oil Addiction Is Here To Stay Due To Lack Of Alternatives

(CBS)  The good news is that the price of oil is falling - a lot; it's also the bad news if you're determined that the U.S. should kick its addiction to foreign oil. President-elect Barack Obama says now is the time to do that, even with the economy in recession.

But Saudi Arabia, the world's largest oil supplier - with the U.S. as its number one customer - is pulling all the levers and spending billions to keep the oil age going.

60 Minutes correspondent Lesley Stahl went to Saudi Arabia a few weeks ago to meet one of the most powerful men in the world, Ali Al-Naimi, the Saudi oil minister and de facto head of the OPEC oil cartel.

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"If most Americans had an opportunity to sit down with the oil minister of Saudi Arabia, the thing they would like to know is where you think the price of oil's gonna be, say, in about six months. Is it gonna be up or down?" Stahl asked.

"You want my classic answer?" Al-Naimi replied.

"No. I want your honest appraisal…and your judgment," Stahl asked.

"My honest judgment is if I were to know what the price of oil six months from now, I would be in Las Vegas. Okay?" Al-Naimi said, smiling.

He may be smiling, but this is a man with serious heartburn and vertigo. The price of oil has been soaring and sinking up and down uncontrollably. Asked why oil prices spiked to $147 a barrel in July, Al-Naimi told Stahl, "Basically, there was what's called a 'fear premium.'"

"And the fear was that Saudi Arabia itself had peaked out. That you'd reached your ceiling of how much available oil is left in your overall reserve. So, what's the truth?" Stahl asked.

"The truth is here is the kingdom with more than 260 billion barrels. And I firmly believe that the potential to add another 200 billion barrels of oil are there to be found," Al-Naimi said.

If the oil minister of Saudi Arabia had one message, it was that there is no need for those fears.

And to make the point, the Saudis let 60 Minutes see facilities that will increase the country's capacity from about 10 million barrels a day to more than 12 million. And they're going to the ends of the Earth to do it.

One of those desolate places is Shaybah, a desert wilderness where temperatures can reach 135 degrees. The Saudis say that 18 billion barrels of oil lie beneath the red sand dunes, more than four times the proven reserves of Alaska.

To tap into it, the kingdom's national oil company, Saudi Aramco, had to build an oasis there. Awayyid Al-Shammari oversees the mega-project at Shaybah, an area of the kingdom known as the "Empty Quarter."

"We're on soft sand. We're not talking about a hard surface here," Stahl remarked.

"Yeah," Al-Shammari acknowledged. "The logistics are impossible. The first thing we had to do is build our own road in order to access this field."

"Once that was done, we had to remove one hundred million cubic feet of sand just to make the runway that we are currently using," he explained. "We had to remove a sand dune in order to connect two flat areas to do that."

Al-Shammari said they also had to build a pipeline 400 miles in length. "And you can imagine the challenge of building that pipeline in a topography like this."

[jrready13]

Lesley, as much as i like 60 minutes for the last 20 some years i could not believe you asked what drove up the price of oil. Simple and short and anyone with an iq of more than 15 knows this is ONLY due to futures buying and short sell. When the whole market went to hell they just didnt know how much they would loose and backed down.
Something for you to really think about ! How in the hell can supply and demand raise and lower oil/gas prices weekly/daily. Lets get back to real reporting.
paul

[downtowner97]

That''s funny. I''ve driven my VW Touareg 74000 miles in the last year and a half on biodiesel. The US government is investing heavily in algae biodiesel. 100 years ago, the liquid fuel of choice was whale oil. It''s time for another shift.

[cebaldridge]

This is one of the worst interviews I''ve seen in a while. Stop imposing you biased ideas on American people. I love my "gas guzzling" nation, and wouldn''t trade it for anything!

[allsmiles277]

The Saudis make me sick....I have a 2000 Honda Insight that gets 60mpg and I will purchase a plug in electric vehicle or some other alternative form of energy when it is financially feasible. The Saudis ARE NOT our friends. The USA automobile companies ARE NOT our friends. THE USA oil companies ARE NOT our friends. It is time for Americans to change our destiny with regards to vehicles !!!

[ericthepilot]

Seldom have I seen Leslie give such an disrespectful interview. And all that to be in the spotlight for a current affairs item, oil. Her continued interruptions of the interviewee, and lack of respect of the Kingdom''s culture, only show that the woman should not be in the CBS lineup. All other reporters never treated any minister of a foreign country like that before.
Too bad there is no impeachment procedure for her to oust her out of journalism.

[ericthepilot]

Seldom have I seen Leslie give such an disrespectful interview. And all that to be in the spotlight for a current affairs item, oil. Her continued interruptions of the interviewee, and lack of respect of the Kingdom''s culture, only show that the woman should not be in the CBS lineup. All other reporters never treated any minister of a foreign country like that before.
Too bad there is no impeachment procedure for her to oust her out of journalism.

[downtowner97]

This is one of the worst interviews I''''ve seen in a while. Stop imposing you biased ideas on American people. I love my "gas guzzling" nation, and wouldn''''t trade it for anything!

cebaldridge

________________________________________________

Yes! Guzzle! Guzzle all you want! Just make sure you''re guzzling a fuel that''s made in America, keeps our money in America, and creates American jobs. I have a V-10 twin turbo diesel car that goes 180 mph and runs on biodiesel made right here in Oregon.

[jacwhitney]

Excellent story on Saudi oil...though Leslie, please loose the bright red lipstick

[ericthepilot]

Seldom have I seen Leslie give such an disrespectful interview. And all that to be in the spotlight for a current affairs item, oil. Her continued interruptions of the interviewee, and lack of respect of the Kingdom''s culture, only show that the woman should not be in the CBS lineup. All other reporters never treated any minister of a foreign country like that before.
Too bad there is no impeachment procedure for her to oust her out of journalism.

[downtowner97]

Yes, ericthepilot, we get it. Women are stupid and bad. We got it the first and second time too. Reposting makes you look like a complete dickhole.

[ericthepilot]

Seldom have I seen Leslie give such an disrespectful interview. And all that to be in the spotlight for a current affairs item, oil. Her continued interruptions of the interviewee, and lack of respect of the Kingdom''s culture, only show that the woman should not be in the CBS lineup. All other reporters never treated any minister of a foreign country like that before.
Too bad there is no impeachment procedure for her to oust her out of journalism.

[ericthepilot]

Seldom have I seen Leslie give such an disrespectful interview. And all that to be in the spotlight for a current affairs item, oil. Her continued interruptions of the interviewee, and lack of respect of the Kingdom''s culture, only show that the woman should not be in the CBS lineup. All other reporters never treated any minister of a foreign country like that before.
Too bad there is no impeachment procedure for her to oust her out of journalism.

[bjcone8559]

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James Baker III, former United States Secretary of State under George H. W. Bush, Staff member under Ronald Reagan and George W. Bush, Carlyle Senior Counselor, served in this capacity from 1993 to 2005.
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Frank C. Carlucci, former United States Secretary of Defense from 1987 to 1989; Also, former Princeton wrestling partner of former US Secretary of Defense, Donald Rumsfeld. Carlyle Chairman and Chairman Emeritus from 1989 to 2005.
Richard Darman, former Director of the U.S. Office of Management and Budget under George H. W. Bush, Senior Advisor and Managing Director of The Carlyle Group from 1993 to the present

Liu Hong-Ru, former chairman of China''s Securities Regulatory Commission

Shafig bin Laden, older brother of Osama bin Laden

[ryandebny]

What an idiot. First of all America''s addiction to oil is their problem. Is she blaming Saudi? "Bush wants us to be less dependant?" Years ago he rallied about Americans should be able to drive any vehicle they want. SUV.
If Suadi takes advantage of a market... good for them.
Secondly, shouldn''t she be up in Canada. Canada sells more oil to the US than anyone else in the world.
Nice research

[wallee4]

Your interview was interesting but I hate hearing that we are considered addicted to oil ( foreign or domestic )We, as is the rest of the world who uses it,are getting it from where we can...at the moment. So the problem seems to be, how we can reduce our consumption...say, get more out of our fuel we consume ? Higher gas mileage is attainable and it is not a pipe dream, it is a reality. 60 minutes needs to set up an interview with Doug Palmear of Napoleon, Ohio who owns a company that has constructed a new combustible V-8 engine that is in a 1987 Ford Mustang that gets the car 100 mpg !!! It is entered in the new $10 million X-Prize for next fall 2009. Go to hp2g.com for details . Thank you.

[wallee4]

Your interview was interesting but I hate hearing that we are considered addicted to oil ( foreign or domestic )We, as is the rest of the world who uses it,are getting it from where we can...at the moment. So the problem seems to be, how we can reduce our consumption...say, get more out of our fuel we consume ? Higher gas mileage is attainable and it is not a pipe dream, it is a reality. 60 minutes needs to set up an interview with Doug Palmear of Napoleon, Ohio who owns a company that has constructed a new combustible V-8 engine that is in a 1987 Ford Mustang that gets the car 100 mpg !!! It is entered in the new $10 million X-Prize for next fall 2009. Go to hp2g.com for details . Thank you.

[wallee4]

Your interview was interesting but I hate hearing that we are considered addicted to oil ( foreign or domestic )We, as is the rest of the world who uses it,are getting it from where we can...at the moment. So the problem seems to be, how we can reduce our consumption...say, get more out of our fuel we consume ? Higher gas mileage is attainable and it is not a pipe dream, it is a reality. 60 minutes needs to set up an interview with Doug Palmear of Napoleon, Ohio who owns a company that has constructed a new combustible V-8 engine that is in a 1987 Ford Mustang that gets the car 100 mpg !!! It is entered in the new $10 million X-Prize for next fall 2009. Go to hp2g.com for details . Thank you.

[wallee4]

Your interview was interesting but I hate hearing that we are considered addicted to oil ( foreign or domestic )We, as is the rest of the world who uses it,are getting it from where we can...at the moment. So the problem seems to be, how we can reduce our consumption...say, get more out of our fuel we consume ? Higher gas mileage is attainable and it is not a pipe dream, it is a reality. 60 minutes needs to set up an interview with Doug Palmear of Napoleon, Ohio who owns a company that has constructed a new combustible V-8 engine that is in a 1987 Ford Mustang that gets the car 100 mpg !!! It is entered in the new $10 million X-Prize for next fall 2009. Go to hp2g.com for details . Thank you.

[ccperez1]

I congratulate Lesley Stahl on her ability to hold position and interview Ali Al-Naimi and other Saudi individuals involved in the Saudi oil business. Her questions were incisive and her composure and demeanor during the interviews was impressive. The entire interview was highly interesting and informative. One must remember that she was functioning within a society and culture totally different from our own in the US. Good Job, Lesley!

[ericthepilot]

Seldom have I seen Leslie give such an disrespectful interview. And all that to be in the spotlight for a current affairs item, oil. Her continued interruptions of the interviewee, and lack of respect of the Kingdom''s culture, only show that the woman should not be in the CBS lineup. All other reporters never treated any minister of a foreign country like that before.
Too bad there is no impeachment procedure for her to oust her out of journalism.

[ccperez1]

I congratulate Lesley Stahl on her ability to hold position and interview Ali Al-Naimi and other Saudi individuals involved in the Saudi oil business. Her questions were incisive and her composure and demeanor during the interviews was impressive. The entire interview was highly interesting and informative. One must remember that she was functioning within a society and culture totally different from our own in the US. Good Job, Lesley!

[cbs60min]

I noticed that Lesley did not bother to ask about the Saudi''s refusal to help the US in our time of need (when Bush went with "hat in hand" asking for increases in production).

[skeeter31]

Leslie, why didn''t you ask the oil minister the real concern that we should have which is are you going to start helping us fight the "war on terror"? Did you forget that most if not all the 911 hijackers were from Saudi Arabia?

We, the U.S. and the media have seem to forgotten that. We should not be dealing with these people because of their policies. We should not make the same mistakes we made in the ''70s. The time is now to get off our dependency from these Arab countries and become self-sufficient and find alternative energy sources and drill where we can in the U.S.

[clathrate]

The Saudis need not worry, oil prices will be zooming back up in the coming months...oil is artificially cheap now, as demand has really not abated much depsite the econmic crisis.

In the long run, we can and will wean ourselves off fossil fuels. Oil will still be a valuable commodity despite this, as nearly all chemicals, plastics and fertilizers are derived from it. Oil will continue to be pumped and used for hundereds of years; it''s just our reliance on it as a transportation fuel that must and will end within this century.

[kmikeb]

It''s too bad CBS sent Stahl to do this story. A good story done poorly by Stahl. Stick to puff pieces Stahl you''re way over your head.

[liza-z6]

Please I''m over these haloed control freaks of a kingdom in the 21st century. DRILL BABY DRILL take control of the United States energy resources; cool coal, wind, nuclear, oil, new car technology so Americans do not have to be held in bondage for the next 100 years. TAKE ACTION NOW.....The Saudis on December 17, 2008 have a suprise to cut oil again, for they want an average price guaranteed at $75.00 a barrel, and not working with the rest of the world in the on going economic crisis, why should they? I and every American are not the slaves of a kingdom that should start comming into the 21st century and quit being martyrs and speaking with fork tongue. On one hand their kingdom is run by religion, stone people to death, do not have a seperation of law vs religon and no human rights record. Also, women issues, to many to speak about and conributors of the UN food fund for the world they are the least contributors...Please I am over it 48 years worth of these aholes... Let China, India, Venezuela, etc. deal with this kindgom and let America become OIL INDEPENDENT for the future of our children... Please we are not alcholics or drug addicts, we are sane...

[liza-z6]

The Saudis seem to forget that in the 1930''s our American engineers and technology were able to bring the oil to the surface and make this country what it is today. The United States should have cut a contract with infinity attached that Americans would buy oil for no more than $30.00 a barrel. Why do we need to depend on there vision of where technology today stands? We want containment in energy issues within the United States.

DRILL BABY DRILL AND GET GOING ON ALL AVENUES OF ENERGY..WHAT AN OPPORTUNE TIME TO CREATE JOBS IN A RECESSION.....................

[ericthepilot]

Seldom have I seen Leslie give such an disrespectful interview. And all that to be in the spotlight for a current affairs item, oil. Her continued interruptions of the interviewee, and lack of respect of the Kingdom''s culture, only show that the woman should not be in the CBS lineup. All other reporters never treated any minister of a foreign country like that before.
Too bad there is no impeachment procedure for her to oust her out of journalism.

[ericthepilot]

Seldom have I seen Leslie give such an disrespectful interview. And all that to be in the spotlight for a current affairs item, oil. Her continued interruptions of the interviewee, and lack of respect of the Kingdom''s culture, only show that the woman should not be in the CBS lineup. All other reporters never treated any minister of a foreign country like that before.
Too bad there is no impeachment procedure for her to oust her out of journalism.

[ericthepilot]

Seldom have I seen Leslie give such an disrespectful interview. And all that to be in the spotlight for a current affairs item, oil. Her continued interruptions of the interviewee, and lack of respect of the Kingdom''s culture, only show that the woman should not be in the CBS lineup. All other reporters never treated any minister of a foreign country like that before.
Too bad there is no impeachment procedure for her to oust her out of journalism.

[bobgee_1999]

Interesting report, CBS! It is enjoyable -- and important -- for us to get a look inside the Saudi Arabian oil culture.

[colaneroj]

After watching Ms. Stahl''s story about Saudi Arabia, I am once again amazed how the media continues to
ignore the real question "WHy does our government continue to insist we be dependent of Saudi oil?"
Blaming the Saudi''s is very misquided. When in reality it is our own fault. We should be increasing
our drilling, expanding our own industry with in our own borders. THIS would create jobs, help the trade imbalance and most likely stablize our economy for years. AND, yes it would take years for that to happen. But, wouldn''t we be much better off for the
long haul. Leslie, that is the real story and questions that are really worth asking. Guess even
60 Minutes, as well as the bulk of the America people
are ready to buy into the fact that new roads and
alternative energies will bring this encononmy into the future.

[bleechdahole]

Just think: If these people didn''''t have oil, they''''d be Palestinians.

Posted by william384 at 08:58 PM : Dec 07, 2008
+ report abuse
*****

or better yet..you were NOT SO DEPENDENT on oil there would be palestine

[bleechdahole]

now that gas prices are the lowest in years....several of you people already forgot about the need for alternatives

[georgew1956]

THE OIL MINISTER IS FAT LIAR , THERE IS NO OIL SHORTAGE AND HE IS INLOVE WITH MONEY HE SHOULD SEND ALL THE PEOPLE CHECKS OF 1,000,000. EACH FOR BEING A CROOK. SOB.

[lilitu1000]

Congratulations to Mr. Ali Al-Naimi for maintaining a demeanor of calmness and reason in the face of Ms.Stahl''s addressing him with statements and questions that were often inflammatory, tricky, or down-right insulting. She tried her best to ruffle his feathers. He came out looking dignified, intelligent, and noble.
Congratulations to Mr. Al-Naimi on a great interview.

[joethedumber]

Chuck Norris lied, the US doesn''t have a drop of oil compared to Saudi Arabia. Stop watching and believing the TV.

[whitemale08]

The British controlled Saudis are bullish because if they have to cut production to a trickle force prices up to $300 a barrel they will do it.

The problem is not shortage.

The problem is the 8.5 trillion in worthless Federal Reserve Notes.

These countries are told by the IMF/World Bank to inflate their currency (print more money) to ''buy our debt''.

As long as the bailouts continue, the more OPEC will cut.

Nobody but Nobody can eat or clothe themselves with ''paper-butt-money'' (Federal Reserve Notes)...NOBODY!

[ericthepilot]

Seldom have I seen Leslie give such an disrespectful interview. And all that to be in the spotlight for a current affairs item, oil. Her continued interruptions of the interviewee, and lack of respect of the Kingdom''s culture, only show that the woman should not be in the CBS lineup. All other reporters never treated any minister of a foreign country like that before.
Too bad there is no impeachment procedure for her to oust her out of journalism.

[hawksprings]

Don''t worry, our Dear Leader has promised us that in 10 years, we will not use any foreign oil.

[sepa2]

One consequence of our dependence on Saudi oil is that the US government and media never mention the fact that most of the 911 terrorists were Saudis (nor has Saudi Arabia ever apologized for the involvement of its citizens in an attack on the US). As a result, most Americans now believe that the 911 terrorists were Iraqis.

Posted by MichaelAR1
-----------------
Another one rarely mentioned in US media is one of the reasons for this terrorist attack - our unconditional support for the subjugation of Palastinians

[jamster31]

The problem is, if prices are down as they are we will never make alternative fuels. We''ve talked about it since the oil embargo of the seventies and everytime it''s went up since. Then when the prices dropped there was no incentive anymore and we dropped the ball. Only a good leader can stay the course. Lets see if Obama can do it.

[indivthinker]

The Saudi''''s are basically saying, "We''''re going to drive the price of oil through the roof, and there''''s NOTHING you can do about it."

And the republicans decry the democrats for demanding alternative sources of energy - like THAT makes sense.

Posted by IamHungry68 at 10:00 PM : Dec 07, 2008

Wrong, Republicans just see the necessity of using coal and nuclear power in ADDITION TO researching alternative fuels AND drilling more here to make the transition easier.

Obama just wants us to inflate our tires while we research something that hasn''t been invented yet. He neglects the enormous supply of energy that comes from nuclear energy. He also wants to bankrupt the coal industry despite the success of the clean coal power plant movement. The USA has the largest reserves of coal in the world, yet Obama wants to bankrupt the industry and cause the loss of thousands of jobs. This is not to mention 50% of the US''s electricity comes from coal, so you should expect energy costs to skyrocket.

Obama, the savior, also seems to think that there is some redeeming value in wind and solar. There is little value in them other than their sources never run out, but they are so much more expensive than clean coal or nuclear, and there is no way that wind and solar could power the USA, especially the future demands of the country.

Obama and Pelosi have you suckered into a fantasy realm of alternatives. The alternatives are here (coal and nuclear)... use them!

[hawksprings]

IamHungry, the Liar is the Dear Leader.

Just do a google "Obama get us off foreign oil in 10 years" and see how many quotes of the Dear Liar, I mean, Dear Leader pop up.

Here''s just one:
http://thepanelist.com/index.php?option=com_content&task=view&id=1159&Itemid=10036

Suck on that, Hungry.

[hawksprings]

HEy IamHungry,

Go read the transcript of the Dear Leader''s Dembot Nomination acceptance speech.
Here''s the lie, I mean, line:
''And for the sake of our economy, our security, and the future of our planet, I will set a clear goal as President: in ten years, we will finally end our dependence on oil from the Middle East.''

Of course, you won''t find it on his campaign website. It''s been taken down. Orwellian-style.

Lowering fuel efficiency will not help with traffic congestion and deaths and injuries and NOISE. Only electric will help.And more and better public transit.
Americans kill each other 48,000 times a year on the roads.

[ofuku]

this guy lies like a rug......give me a break how does he justify the gouge of a few months ago....thay are after our money with a smile on their face.....leslie was duped. and so is the american public.....the sooner we get off the oil the better for our country.

no wonder we havent found osama ben laden, the arabs are hiding the bstard. he is after all a native son.

[hawksprings]

rharrin,
When the Liberal Facists have implemented the "Fairness" Doctrine, complete gun control, higher and higher taxes, takeover of the health care system, complete demonizing of Big Tobacco, Big Oil, Big Auto, Big Farm, and everything else they seek complete control over, will YOU see anything wrong with Facist Liberalism?

[carpe37]

Ms. Stahl, Your questioning of Ali Ai-Naimi regards the USA oil dependence was outrageous. I am surprised that a lady with your credentials would stoop so low.

[SCD]

In 1963 when I was a Sr. at San Marco High in Santa Barbara CA, the young men - lots of them, wanted the Sr. Girls to go to a dance they put on. I danced a lot, but, not being a buxom blond, I wasn''t asked for any follow up. It was Aramco then too.