After Rejecting Oil From Canada, U.S. Asks Saudi Arabia For Oil
Reuters reports that the U.S. has been pressing Saudi Arabia to increase its oil production to mitigate supply disruptions caused by political tensions in Iran. After rejecting the Keystone XL pipeline earlier this year, the president is now engaging in a public relations blitz to boost his sinking poll numbers and defend his actions related to gas prices even though nearly two-thirds of Americans disapprove. But instead of taking action to increase oil production here in America or allowing more Canadian imports, it appears the administration is imploring Saudi Arabia to deliver more oil.
While the president is touring the country calling for policies to reduce our dependency on foreign oil, he continues to ask countries like Saudi Arabia and Brazil to fuel our economy. Just a year ago the president told Brazil "we want to be one of your best customers." While the president claims there is "no silver bullet" to reduce gas prices, he clearly understands that more supplies are needed to stabilize prices, but apparently he prefers those supplies come from overseas....
In a recent hearing with Energy Secretary Steven Chu, Rep. Steve Scalise (R-LA) suggested that instead traveling to Saudi Arabia, the president and his team should look no further than their own policies at home and embrace our energy resources here in North America. Watch here.
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U.S. asks Saudis to lift oil output from July
March 13, 2012
KUWAIT, March 13 (Reuters) - The United States is pressing Saudi Arabia to boost oil output to fill a likely supply gap arising from sanctions on Iran, Gulf oil officials said, adding that an increase in production is unlikely to be needed before July.
Saudi Arabia is the only producer with spare capacity and oil importers will rely on Riyadh to fill the gap should Iranian output drop.
Saudi Arabia has made clear it will only raise output if it sees additional demand for crude and does not want its oil policy implicated in efforts to disrupt Iran's atomic programme which the West says aims to develop a nuclear weapon.
"There were talks held between Saudi and the U.S. and the U.S. asked if Saudi could be accommodating once the sanctions take effect in July. And the Saudi response was that it was ready to meet demand in the market if required, but would not like to take part in the politics," one Gulf official said.
The official was speaking at a gathering of energy ministers from producer and consumer nations at the International Energy Forum (IEF) in Kuwait.
A U.S. official declined to comment on the talks, saying only, "We consult regularly with the Saudis on a range of bilateral and global energy issues."â€¦
In Washington, Democratic lawmakers this election year have been urging the Obama administration to tap the country's emergency reserves to bring down petroleum prices.
"If Iran won't stop saber rattling, and the Saudis won't eliminate Iran's leverage by producing more oil, then it's time to release oil from the Strategic Petroleum Reserve to send these countries a message that the U.S. economy won't be held hostage for months," said Edward Markey, the top Democrat on the House Natural Resources Committee.
Already running close to record highs of about 10 million bpd, Saudi says it has the capacity to reach 11.4-11.8 million very quickly and could bring on another 700,000 bpd in 90 days to reach full capacity of 12.5 million bpd....
Read the article online here.