Today President Bush met with Crown Prince Abdullah of Saudi Arabia. Obviously, they
talked about oil and about upping production to offset U.S. price hikes. Here's the problem:
But it is not clear that the Saudis have as much clout over the oil market as they used to. For one thing, the rise in prices has been driven as much as anything by surging demand from the fast-growing economies of China and India, a trend that is likely only to increase. For another, the Saudis are already pumping oil at rates closer to their maximum sustainable capacity than during previous price spikes . . .
In 2002 Saudi Aramco, the state owned oil company, says it produced 6.8 million barrels of oil per day. The Saudis are now estimated to produce about 9.5 million barrels a day. . . . the spare capacity available to the Saudis to smooth out price spikes [is down from 3 million barrels per day] to about 1.2 million barrels a day.
What was Bush's reponse? Conserve? Less SUVs? Tougher mileage standards?
What was Bush's reponse? Conserve? Less SUVs? Tougher mileage standards?
In his remarks to reporters, Mr. Bush said part of the solution for the United States was to pass the energy bill he proposed four years ago. The bill, which would allow more domestic oil exploration and drilling, has been stalled in the Senate.
"The bill is a long time in coming," Mr. Bush said. "Now is the time for something to happen."