Bush's Reaction to OPEC Decision.

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posted on Sep, 27 2003 @ 04:12 AM
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Sep 25, 3:48 PM (ET)


WASHINGTON (AP) - President Bush, reacting to OPEC's decision to cut oil output, urged oil-producing nations Thursday not to hurt the U.S. economy, which the White House says depends on stable oil supplies and prices.

Crude oil futures surged more than $1 a barrel on Thursday after OPEC lowered its oil output ceiling by 3.5 percent, cutting the ceiling by 900,000 barrels a day to 24.5 million barrels starting in November.

"I would hope our friends in OPEC don't do things that would hurt our economy," Bush told reporters in the Cabinet Room at the conclusion of a meeting with congressional leaders on a Medicare prescription drug program.



I think the "I would hope our friends in OPEC don't do things that would hurt our economy" quote means a lot more than is seen. I think the cutback in oil output is bull#. The prices of gas are so #in high, you would think that MORE output is needed, right? Or no? Comment anyone?




posted on Sep, 27 2003 @ 04:21 AM
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Originally posted by 10DeadInside10
Sep 25, 3:48 PM (ET)


WASHINGTON (AP) - President Bush, reacting to OPEC's decision to cut oil output, urged oil-producing nations Thursday not to hurt the U.S. economy, which the White House says depends on stable oil supplies and prices.

Crude oil futures surged more than $1 a barrel on Thursday after OPEC lowered its oil output ceiling by 3.5 percent, cutting the ceiling by 900,000 barrels a day to 24.5 million barrels starting in November.

"I would hope our friends in OPEC don't do things that would hurt our economy," Bush told reporters in the Cabinet Room at the conclusion of a meeting with congressional leaders on a Medicare prescription drug program.



I think the "I would hope our friends in OPEC don't do things that would hurt our economy" quote means a lot more than is seen. I think the cutback in oil output is bull#. The prices of gas are so #in high, you would think that MORE output is needed, right? Or no? Comment anyone?


Haha. Bush saying "I would hope our friends in OPEC don't do things that would hurt our economy", brings images of Al Capone saying that to my mind. These days I can't help but take that as a subtle threat.

And prices certainly won't go down with lower output. They will only raise.



posted on Sep, 27 2003 @ 04:29 AM
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maybe this is a decision to make oil supplies last longer ....... OPEC would know if the oil reserves were really starting to run dry.

Maybe they are, so they are cutting the output to make them last longer while squeezing evert last $$ out of the consumers?



posted on Sep, 27 2003 @ 09:09 PM
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Originally posted by mulberryblueshimmer
maybe this is a decision to make oil supplies last longer ....... OPEC would know if the oil reserves were really starting to run dry.

Maybe they are, so they are cutting the output to make them last longer while squeezing evert last $$ out of the consumers?



It is a tatic used to get better prices because they are a group in cohesion they can collectively set the price.



posted on Sep, 27 2003 @ 09:59 PM
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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]



posted on Sep, 27 2003 @ 10:48 PM
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Well, first of all, petroleum reserves are not in a critical state... we still have about 5 decades worth available with current extraction technologies, and as oil gets more expensive, advanced extraction technologies will become more feasible, and reserves will probbly double.

I would take Bushes statement as a veiled threat, and a very serious one at that... he is well aware that the Euro conversion will seriously impact the US economy, and he knows that is why the US attacked Iraq...



posted on Sep, 28 2003 @ 01:29 AM
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I agree with Heelstone and DR.

Bush is basically saying "I hope no OPEC nations force us to do another regime change". Also, I agree there is no shortage yet. Just looks like more chess playing to me. We all know Iraq isn't working quite the way the neo-cons hoped as far as getting the oil out of there. We also know Saudi Arabia is an easy target. Notice this came out right after Israel was talking about using Iraq airspace for an attack on Iran. The plot thinkens...



posted on Sep, 28 2003 @ 12:09 PM
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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!



posted on Sep, 28 2003 @ 12:26 PM
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I would imagine that OPEC countries develope their policies for the benefit of their own economies.

What would anybody else do?

You have a finite resource that if sold more slowly does not effect income.

By that I mean that if production is X and price is Y.So if normal production is 100X at 1Y per X then income is 100Y.If that is reduced to 50X then price increases to 2Y an income is still 100Y.

So if you controled a finite resource that's value increased as production decreased How would you manage it for the benefit of your economy.

Always makes me laugh,as a Briton,when Americans complain of high fuel costs.I just bought 20 worth of 4 star at over 80 pence a litre.

Bush isn't going to move US industry away from carbon dependancy.The guy has excepted million of dollars from fellow oilmen to keep it.



posted on Sep, 28 2003 @ 02:18 PM
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Of course Bush wont, John Bull, and niether will his predecessors. Theres simply too much money and power involved in electing our tyrants and overlords.

If Britons do not like paying so much for gasoline, then perhaps they should get with it and start demanding the govornment get rid of the taxes on it, since the majority of what you pay for gas is taxes.

I never understood why Britons dont start a massive tax revolt. For all the money your govornment soaks you from income tax, gas tax, tely taxes, ect, you should be getting a # of alot more in terms of benefit from these obscene tax rackets, yet you dont. Public transportation should be ALOT cheaper if they are gonna charge that much for gas, yet Ive seen what trains cost, and #. Not much of a deal there. You should be getting alot more than just national healthcare for that kind of money. If youre fine with paying all those taxes, thats wonderful, but I still think that you guys, for the amount of chas that gets drained, should be getting free #ing houses or free electricity.



posted on Sep, 28 2003 @ 04:54 PM
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Originally posted by Skadi_the_Evil_Elf
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.


Wow! For the first time, I agree with Skadi!



posted on Sep, 28 2003 @ 05:11 PM
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Wow! For the first time, I agree with Skadi!



If you agreed with me on something, then run for the hills, because the end of the world is here......



posted on Sep, 28 2003 @ 09:48 PM
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