Bush's Reaction to OPEC Decision., page 1


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reply posted on 27-9-2003 @ 09:59 PM by Seekerof
Here's the article:
"Bush to OPEC Don't 'Hurt Our Economy"
Reuters ^ | 09-25-03

WASHINGTON (Reuters) - "One day after OPEC's surprise decision to cut oil supplies, President Bush pressed Saudi Arabia and other cartel members on Thursday not to act in ways that threaten the U.S. economy.

The president's highly unusual message to OPEC underscored the administration's concerns about the potential impact of higher energy prices on the nation's fragile economic recovery in the run-up to next year's presidential election.

"My reaction is that I would hope our friends in OPEC don't do things that would hurt our economy," Bush told reporters at the White House when asked about OPEC's decision, which could raise fuel costs this winter.

White House spokesman Scott McClellan said the administration was consulting OPEC members, who control half the world's oil trade, and asserted that "market forces" should determine oil prices.

"Oil prices should be determined by market forces so that we can ensure adequate supplies. Producing and consuming countries both have an interest in ample, affordable energy supplies," McClellan said. "Obviously we have ongoing and regular consultations with major oil producers around the world and those continue."

The Organization of the Petroleum Exporting Countries agreed on Wednesday to reduce production for 10 members by 900,000 barrels per day to 24.5 million bpd, effective Nov. 1.

It cited rising inventories, a fall in prices this month and the gradual return of Iraqi crude to the world market.

World oil prices surged more than a dollar after OPEC's decision, with U.S. light crude settling Thursday at $28.29 a barrel and London Brent at $26.81.

Analysts said the output pact sent a powerful message that the Saudi-led cartel was determined to defend crude near the top of its $22-$28 price target, even at the risk of upsetting Washington.

Riyadh has come under heavy criticism in the United States since the Sept. 11, 2001, attacks, but won high marks from the Bush administration for opening the pumps before the U.S.-led invasion of Iraq.

ELECTION ISSUE

High energy prices have emerged as an important election-year issue for Bush, who has seen his approval ratings slide amid growing unrest in Iraq and layoffs at home.

To counter OPEC's output cut, Democratic Sen. Charles Schumer of New York urged the administration to release crude from the U.S. emergency oil stockpile. He said Bush should tap part of the 621 million-barrel Strategic Petroleum Reserve to put more oil in the market and lower prices.

The administration has said repeatedly it would use the reserve only if there was a real supply emergency and not to control crude prices. U.S. oil inventories are below average for this time of year, according to the Energy Department.

Earlier this month, Bush said he was more concerned about natural gas prices than oil prices, citing reports of non-OPEC oil production beginning to come on line.

"That'll be positive for American consumers. You know, the best thing that you can do diplomatically is to try to prevent (an) enormous spike," Bush said in a television interview."



OPEC is nothing but a political and economic tool.
The number one way to stop it is for the US to concentrate on alternative energies and get away from OPEC and oil. One, maybe two, OPEC countries are attempting to solve the market share problem by making sure that competing market share never gets to market.

The immediate goal is to get our technology independent of terrorist oil. Our long term goal is to make it safe for our environment. I think that you make a good point about alcohol. However I think we'd have to fight tooth and nail to keep the oil companies from being able to block such a transition.

That proposal is exactly why OPEC is raising prices! Just before the end of the Vietnam War OPEC, using the excuse of western support for Isreal, cut off the flow of oil. The real reason for this act, however, was their desire to keep crude at high per barrel prices in the face of America's expected lowered volume needs as the war wound down. The Saudis always see their customers like a pusher sees an addict. When they act like they don't want to get high so often you tell 'em there's no more crack in the pipe!


Corruption only breeds further corruption......Bush included.
Old article but serves the purpose, to an extent....

"How to Break the OPEC Cartel"
Link:
www.insightmag.com...

Some further easy solutions.....

Time to drill ANWAR, ramp up CAFE standards (this time INCLUDE SUVS!), and make an oil purchase deal w/ Russia that helps them replace lost Iraqi revenue.

Cut a deal with Mexico and Russia to buy tons of oil from them and tell the Arabs to go screw. Both countries could use the oil. We could also buy a bunch of oil from Iraq to help support their economy. As for Chuck Schumer and his idea about releasing oil reserves what a stupid plan , "Bubba" already did that and it never helped a bit. Chucky is an idiot.


regards
seekerof

[Edited on 28-9-2003 by Seekerof]


reply posted on 28-9-2003 @ 12:09 PM by Skadi_the_Evil_Elf

The immediate goal is to get our technology independent of terrorist oil. Our long term goal is to make it safe for our environment. I think that you make a good point about alcohol. However I think we'd have to fight tooth and nail to keep the oil companies from being able to block such a transition


Thank you Seekerof. You took the words right out of my mouth. Your whole post basically summarizes what I think of OPEC and our addiction to thier filthy drug.

Tell the Arabs to go screw off indeed! Thats what we need to do. The discovery of a new energy source would cripple them irreverably, and the middle east would no longer matter.

Terror money comes from oil, not drugs. Oil is evil. Oil enslaves us. With an alternative energy source (which i think we have several developed, but the technology is being suprresed by oil companies and others) we could pull out of the middle east all together. Thier wealth would dry up, and they would spiral down into oblivion unless they diversified thier holdings. Without oil, they are nothing.

All we need is a loeader who will actually take us down this path instead of one who will keep us addicted.

But, I agree, the reason for the OPEC cut in production is to cripple and harm the US economy, as OPEC cares nothing about energy conservation or the environment, they care only for thier own pockets. We just need to go into energy rehab and find new and better sources of fuel. Like, alcohol, energy cells,. Washington states electric power is generated through hydroelectric damns mostly, and a nuke plant. We have this resource available, let us look into other areas of the country and find natural sources of electric power that will work well for them as well. Wind power in the midwest? Solar power in the deserts?

And our automobiles, we must find and find quick something to drive our trucks and trains, cars and planes.

In the long run, finding new energy sources not only will benefit America economically and socially, but the environment will be the biggest winner: no more ugly # brown smog to obscure my view of the big beautiful volcano in our midst!
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