Democrats say Saudis curtailed oil exports (causing price spike)

[Nambe]

WASHINGTON (AFX)

Senate Democrats accused Saudi Arabia Thursday of deliberately curtailing oil exports in August, contributing to a record rise in gasoline prices in recent weeks. Sen. Charles Schumer, D-N.Y., said preliminary data obtained from the Energy Department's Energy Information Administration shows that U.S. oil imports from Saudi Arabia dropped by 500,000 barrels a day in the first three weeks of August, a decline of 25 percent. "Oil exporting countries like Saudi Arabia would like us to believe that this historic gas price spike is the same price hike we see every year at this time, but it's not. Something else is at work here, and I think the Saudis know it," Schumer said. A letter to President Bush signed by 32 Democrats urges the administration to pressure the Saudis to boost oil exports. If the Saudis don't comply, the Energy Department should tap the Strategic Petroleum Reserve, releasing 15 million barrels of oil each this month and in October in order to bring prices down.

[GainesT1958]

1. Hmmm...We must've gotten too close to...

Osama's hideout...by mistake!:eyes:

B-)

[htuttle]

2. We haven't seen nothin' yet

This week's oil production agreement between Saudi Arabia and Russia will see to that.

It costs Russia at least $25/barrel just to get their oil out of the ground and to the terminal. If the price isn't that high, they just don't pump it.

You can BET one of the things Putin is looking to get out of Saudi Arabia in exchange for military protection (other than some PR support re: Chechnya) is for the Saudis to KEEP the price of oil above $25/barrel, so that Russia can make some money.

[Turley]

9. Sceptical

While I'm sure there is some Russian oil which costs $25 to produce there us no way that is the average production cost for Russian oil. Even a dimwit like me knows the long-term historical average price of oil is $20 and I don't think the Russkies would have built an infrastructure guaranteed to lose $5 on every single barrel of oil produced over the long-haul. No way.

[htuttle]

10. I haven't found any 2003 statistics on it

But I probably overstated the cost.

I did find a link from a few years back that states that the production cost was up to $12/barrel in Russia, while at the same time, the production cost to Saudi Arabia was $1.50/barrel (a little over a tenth as much):
http://iicas.org/articles/library/libr_rus_28_11_01_2_bz.htm

In any case, Russian oil is more expensive to produce by a long shot. It's in Russia's interest for the price to stay quite high. In order for that to happen (and still allow Russia to pump a sufficient quantity of oil), someone has to cut back (the link above describes some of the complications involved in this).

[Maple]

3. Saudis Cut Oil Production

SCHUMER RIPS OIL-STINGY SAUDIS
By MARK BULLIET

September 1, 2003 -- Sen. Charles Schumer said yesterday that Americans have Saudi Arabian "price gouging" to blame for the sky-high price of gasoline.
"This is not the fault of your local gas station," Schumer (D-N.Y.) said, citing preliminary data from the Department of Energy showing that the Saudis cut oil exports to the United States by a half-million barrels - or 25 percent - in the first three weeks of August.

"This is particularly troubling because it comes at a time when other OPEC nations are producing less oil than we figured," he said.

"Venezuela, Nigeria and Iraq, three mainstays of oil production in the world, are cutting back.

"The price has not gone up a little, but a huge 33 cents from last year."

http://www.nypost.com/news/regionalnews/4621.htm

[ender]

5. sounds like OPEC is screwing us

as a collective.

[Ouabache]

6. Wasn't Prince Abdullah just here for PRIVATE meetings

this past few weeks ?

He met "privately" with GHW Poppy Bush and he met with Cheney at his Wyoming hideout.

Was it duscussed in those meetings?

Oh yeah, those were "private", right.

I really have a problem with government officials like Cheney and Bush meeting at their personal residences ALL THE TIME with leaders of foreign governments. Bush at the Ranch. Cheney at his Wyoming home.

Democrats should be demanding that public business done on the public dime and time be done in the public's facilities and that a public record of the meeting proceedings should exist.

It's the only way Democracies can flourish. Examine their own workings and make appropriate corrections when needed.

[indepat]

11. But I seem to remember someone feeling OPEC's

pain.

[Flying_Pig]

4. And of course, "*" can be expected to do exactly...

squat about it. He wouldn't want to offend his Saudi masters!!!

[saigon68]

8. If Poodle is Chimp's lapdog, then Chimp must be Saudi's lap dog

Now I get it. and Saudi must be Osama's Lapdog

[el_gato]

7. they own it

what if they decided not to sell it at all?
do we have the right to say they have to sell it?

Gotta keep suckin' that oil.