Tuesday, January 15, 2008

Bush seeks Saudi help to tame oil prices

Hi folks - This is my first blog, so hopefully the links will be provided.

President Bush asked Saudi Arabia today to use their influence in OPEC to increase oil production, as higher oil prices may lead to a slow down in the US economy. He went on to say that a slowdown in the US economy due to high oil prices would in turn result in less oil and gas sold, and as such lower profits for the OPEC nations.

Interestingly enough, in another related story, the Bush administration notified Congress today that it plans to go ahead with the sale of laser guided bomb technology to Saudi Arabia.

This may be a case of "you scratch my back and I will scratch yours".

Any thoughts?


Ross Tomlin said...

I fail to see what leverage Bush has in his negotiations with the Saudis. Ah yes, the standard U.S. offer of weaponry. Very novel. Worked great (herein defined as "not great") with Pakistan a few years back. Global demand is still global demand, regardless of what hi-tech trinkets we dangle. Last I checked, China and India are much bigger players these days. ... And don't get me started on the U.S.'s historically cozy relationship with the Saudis.

Nilou said...

Well I think US government is pretty good at making the deal of you scratch my back and I scratch yours and this eventually hurt nationally security as it did in case of Saddam Hussain. If I recall right one day he was the friend and one day he was the enemy and the question remains who where 911 attacker? Finally consider the fact that we have to once again go back to those three circles National Security, Economics & supply, and Environment and in this case national security is the loser and one day another one.

Amanda Cuellar said...

I agree with Nilou. Handing weapons out to leaders around the world that our now our "buddies" is not such a great idea. It has repeatedly backfired. Perhaps I am a bit idealistic, but I wish our government would become more serious about the research, development and most importantly the widespread use of viable alternative fuels. I feel like we keep skirting the true issue at hand, oil won't last forever and it keeps getting our country into difficult situations. Why not end our dependence as soon as possible?

JasonH said...

Echoing the previous comments...a slowing US economy will not hurt Saudi profits; they are in good shape. It's no surprise that record oil revenues are driving economic expansion in the Gulf Arab states. In fact, France has offered Saudi Arabia, Qatar, and the United Arab Emirates nuclear technology to help meet growing electricity demands. Along with lucrative contracts for French firms, the offer also includes possible French naval support near the Strait of Hormuz. While nuclear power provides the clean energy everyone wants these days, analists are concerned about a regional arms race with nations wanting to match Iran's "secret weapons program".

Nilou said...

I think we need serious longterm plans not short term plans that hurts us in long run I wish politicians would consider a more realistic and longterm solution

Ross Tomlin said...

Long-term planning would indeed be wise, nilou, but our political system (term limits, election cycles) tends to tilt elected officials' focus to short-term gains. One of many catch-22s with the status quo.