What do the Saudis Want?

How about 500K bpd as the charge for protection. No pay, no protection and possible invasion. See if that makes their tent flaps, flap in the breeze.

Absolutely spot-on until the last paragraph. The "alternative sources" position is nothing more than wishful thinking. If such sources were viable, they would be producing now. Science proceeds in leaps and it is inherently unpredictable. We can't decide to make fossil fuels obsolete and do it any more than we can decide to make cancer obsolete. We can work towards that goal, like we work towards alternative fuels. We don't shut down chemotherapy centers while we devote all efforts towards some magic all-purpose cellular cure. Similarly, we have vast oil resources available to us at this moment. The Gulf of Mexico is in the process of being handed over to the Cuban-Chinese connection and the Sierra Club et al. are running this country's energy program. Peace and prosperity are the product of strength; strength is not derived from windmills, solar panels or anything other than fossil fuels. This stuff used to be called "natural resources" and it built this country and our way of life. The process of science will be proceeding as we continue to grow and flourish. Eventually, probably within the next century, breakthroughs will have occurred and gasoline, like the horse, will have a place in history. It's up to us to determine whether the Chinese and their pals are the ones driving the engine.

We are reaping the bitter harvest of being crisis oriented instead of having had an energy security plan in place that provides us with a reliable, abundant, and, dare I say it, cheap, supply of energy. This piece merely complains about control of sources of petroleum of sovereign nations and cartels. Who are we to tell them how and when to market their resources? We are not developing our own resources in an effective manner. We will not drill. We will not develop new refining capability. We will not install new nuclear power generation facilities (instead we generate electricity with nat gas, an incredible waste of a precious resource). We bow down to environmentalism and act like neurotic self-destructionists about our economy and way of life (if you want to see REAL pollution, go to China!!). We install a few windmills and pat ourselves on the back. We drive in hybrids and pat ourselves on the back. Etc. Etc. Unfortunately, that will not get the job done! So, rather than look at ourselves and devise our own solutions for our problems, we prefer to be outraged about what people in other countries are doing to us. It's not a demand problem with others limiting our supply, it's a supply problem with us limiting our own supply.... We are the problem, but we could also provide our own solution.

Congress has done nothing meaningful since 9/11 to help the US have real choices for alternative energy. We still can build many more nuclear plants, expand hydro-electric power options, open ANWAR to oil production, oil shale development, improve wind efficiency, etc.. On all these issues politicians, especially the treasonous Democrats, have failed to help the country. Even this Friday the Democrats on the the Senate Appropriations Committee on Friday blocked the Republican attempts to end its moratorium on oil shale development in Colorado. According to IBD: "This was no minor thing. Estimates put the amount of oil locked in shale in both Canada and the U.S. at more than 1 trillion barrels. Pulling out even a tenth of that would quadruple our current reserves."

its easy to blame the arabs when the real problem is we allow a few fools to keep us from using our on oil.why should the saudie's help us we we wont help ourselfs

The Saudis are business people trying to strike the best deal they can both now and for the future. It is the height of hubris for any country to tell them how to do business. If we don't like it, we have to take our business elsewhere. If there is no other elsewhere, then we better start producing oil ourselves - - just like the good old days when we used to do that!

As much as I hate the thought of paying the Saudis all this money for oil so that they can finance international terrorism, I find it just as appalling to be begging them to sell it to us.

Meanwhile the liberals dig their heels in over nuclear power, increased drilling, and more refineries.

Supply and demand... U.S. pop growing toward half a billion by 2050. Mostly because of immigrants/offspring ...

The facts are that we are in the position we are in because we let Environmentalism and NIMBY(not in my back yard) run amok. The idea that we have not added between 50 and 100 nuclear facilities in the last 25 years is the defination of absurd. The same can be said for the continued non-drilling in Alaska and offshore.
We can only blame ourselves, we elected these idiots both locally and at the national level.
PC will be out end
LEE

Its hard to tell whether the biggest threat to our security is OPEC or Congress.
OPEC usually seems to be acting well within the range of there own self interest,
but I can't say as much for congress.
Instead of acting to increase the supply of our own petroleum resources our congressional
cowards:
-restrict off shore oil exploration and production off both east and west coasts
-prevent drilling in the eastern Gulf of Mexico
-support so called environmental restrictions that prevent building refineries
-block drilling in a tiny corner of ANWAR
-effectively block drilling in the Chukchi Sea
-promote wasteful ethanol programs
-threaten oil companies with counterproductive retribution for making a profit
-Do nothing to promote the construction of nuclear power plants

If Congress were to act to open up oil production,and move aggressively to develop other energy sources we would soon see a very different attitude in OPEC.

Julie McKinley:

'The "alternative sources" position is nothing more than wishful thinking. If such sources were viable, they would be producing now.'
Actually, there is a perfectly viable source - the nuclear source, the most viable source. The only reason that it's not being used now on in a serious way is because the US Federal Government has issued restrictive legislation which: 1) fails to provide enough nuclear fuel 2) discourages utilities and the USN to recycle spent nuclear fuel (which is reusable) 3) discourages utilities from building new nuclear reactors.

The real problem is that the Saudi's are producing flat out. Those water drive resorvoirs have a definite end.

I am all for nuclear energy but until they can make a car run on plutonium we still need to explore and develop our domestic oil resources.

We created the cartel, we can break it. It requires resolve that the chattering nannys in our country do not have. We have oil, we just need to go get it. At this point it will take a while. If in fact a few hundred thousand barrels a day can change the picture we can do it. The problem is that being a rich nation we have spawned a bunch of folks who take their well being for granted and have not worked in a productive sense a day in their lives. We have created any number more lawyers than we need, many graduating from raidcally activist law schools. That is why we have this problem. Oil is messy but it can be produced with minimal damage. We have reserves all around this country that are economic at these prices. The problem is, it take years to get through the legal process. Too many folks believe transportaion runs on hot air. I love folks who object to all of this driving their eight cylinder vehicles, coming out of there fully electrfied homes where everything is instant on, having hot water to wash with and so on. I just listened to someone go on and on about plug in cars and hybrids. So I said how are you going to make the power? Gas, nukes, coal how are is it going to generated ? The look was sort of like you mean it doesn't just come out of the socket.
This reminds me of the person who twenty years ago told me I was wrong when I said a cow had to calve to continue giving milk. I think dairy farmers would know I was correct, but then if you only get milk from the store what is a cow? If you take petrol for granted what is a well ? If you take electricity for granted what is a generating station? We have the ability to solve this.

Like paying the Saudis? Thank a Democrat. Like the Chinese drilling off our shore, thank a Democrat. Like 4.00 gas, thank a Democrat.
There is nothing this country could not do if it were not for Congress. Maybe it is time to take the pitchforks to WA DC?

Mazurak is correct the Saudis are not raising production because . . . they can't. Their fields are beginning to produce alot of water. Water can become the limiting factor in the ability to produce oil because it has to be processed at surface and disposed of. In oil industry terms - their wells are beginning to run "dry". Bush had to ask just to show everyone that he is concerned, he knows the real situation.

Indonesia another OPEC country - has become a net oil importer and is desperately attempting to reverse this situation. Chavez and Putin have put their respective oilfields in the toilet by forcing out western oil companies and thus losing the expertise necessary to increase production. China, India and any other developing economy are factors in increasing demand. Plenty of evidence points toward a supply demand imbalance.

The oil industry is responding but large quantiities of new reserves are only going to be found in deepwater or shallow water remote locations - or in areas currently off limits to Exploration (Angola, Brazil, US OCS, etc).

I agree with both sides of this issue. We need to blame ourselves for not developing alternative fuels years ago. This research should have gone into high hear after the 1973 embargo crisis. Will we never learn? And I also blame Congress. They allow 10% of the country dictate what the other 90% want to do. We need to take our government back from the NIMBY Liberals.

Maybe the "world" encompassed by the borders of USA is "mesmerized" by the Democratic primaries but the remaining 99% of the World does not care, couldn't be bothered and probably is unaware of the tedious electoral procedures of the US. We in Australia get our elections (including the Federal election) over and done with in no more than 6 weeks. Then we get on with our lives.

Why is it that we Americans allow the "14%" to make all our decisions for us??? Why are we dependant on Saudi oil when we have our own sources. What is stopping us from drilling our own wells and taking care of our own. When did we become so whiny and dependant.How can we reverse this trend? If it is imposed by only 14% of the population how did they get so much power???and how do we shut them up and put them outside to play or better yet.....in "time out?"

American troops still defend an anti American Europe because it is in her interest to do so. Thus will America continue to defend the Persian Gulf oil kleptocracies no matter how anti Western their oil producing policies are, not because America likes them but because it is in her interest to do so. The Saudis and all the rest of those tin pot dictatorships know this and so do the Americans.

Jeffrey - AFAIK, no plutonium-powered cars nor electric plug-in cars are currently being produced anywhere in the world, but there are alternatives to cars: bullet trains, which can be powered by nuclear reactors (as in some European countries).
The newest bullet trains (e.g. TGVs and AGVs) offer a speed of up to 224 mph (360 kph), wireless broadband, restaurant cars, onboard telephones, and even compartments where you can plug-in your computer to use it onboard the train.
The only reason why bullet trains don't exist in the US is that cash-strapped state governments can't afford them, and the Federal Government, which has a $3 trillion budget, is not paying for them, even though a bullet train network in the Midwest would cost less than $10 bn. On the Northeast Corridor, Amtrak does not need to upgrade the tracks, merely to buy new rolling stock. However, the President's proposed FY2009 budget is reducing funds for the USDOT across the board. The entire FRA will need to content itself with a $1.094 billion budget if the President's request is approved by lawmakers.

I'm a transmission planning engineer and can give the following characterization to renewables: 1. Wind - a limited use, not very reliable source, likely will stay "exotic"
2. Solar PV-quite bad without storage, use must be "diluted"
3. Solar thermal-seems to be promising, latest technologies could allow 500-1000MW plants, with storage that can operate 24/7. Still it'll take decades to test and develop and will occupy huge swathes of land: mirrors, toll towers, etc are vulnerable and invasive. This resource needs more testing & techn. advancement
Summary: renewables likely will have a limited (~20%?) practical use...
Nukes are good but as a base-load and cannot integrate renewables. Thus, some coal/gas is still needed (unless unexpected technological breakthrough happened!)

It's possible that the Saudi's - and OPEC generally - are thinking shorter term. It's apparent that Barack Hussein Obama is a sentimental favorite of many Arabs and Africans. That's understandable, just as John Fitzgerald Kennedy was a sentimental favorite of many Catholics and Irish. But I also think it's possible that their desire to see Mr. Obama in the White House extends beyond mere sentimentality. They could see in him someone who is much less inclined to think of the United States' traditional "national Interest" as defined by previous generations of American administrations - in effect, someone who is far more willing to see the world "their way" and radically redefine America's stance on many issues in their favor. Other OPEC members and would-be third world wanna-be "leaders" like Hugo Chavez or Mahmoud Ahmadinejad would look forward to dealing with a President Obama for their own, similar reasons.
By keeping the current price of oil extremely high and putting the squeeze on the American consumer, they perpetuate the general feeling of angst currently pervading the country and which generally, during an election year, manifests itself as a rebellion against the perceived "party in power" at the time, usually defined in the public mind as whichever one holds the White House (this mood is certainly being abetted by the mainstream press which ignores the overwhelming dominance of the Democrats in the Congress since 2004). This tool was used before in the 1980's when Ronald Reagan and the Saudi's colluded to drop oil prices to record lows and destroy the only access the Soviet Union had to hard currency to bail out its collapsing economy. This tool is crude (no pun intended) and lots of nations suffer in the short term but such is the way these things work.
The major members of OPEC have powerful reasons to want Barack Obama as the next President of the United States and they have a powerful and simple method to manipulate the presidential election and help sway the American electorate, not so much in favor of Democrat Obama but against his Republican opponent. It will be interesting to see if oil prices come down significantly after the election - particularly if Obama wins.

let us face an important factor and a known, but not
so well known fact. This 21.
Cent.belongs to Islam,for this reason they have to subtly and gradually impose
their culture,religion and
restrictions of freedom on our western society. Their
aim is, to destroy first our
culture and democracy to
eventually establish a word -
wide Islamic Umma. Confront
the Saudis with this, if they
are honest,which they are of
course not,as the Koranic
laws tell them they are at
liberty to tell an untruth as
long as it serves the
interests of Islam.They might
ask you,how do you know this?
Wahabism is out for world
domination and Wahabism is the main religion of the
Saudis.You can be easily aware of this,because Islam
has already infiltrated many
of our institutions including
schools.It is high time that
we wake up and observe.

what can be said that hasn't been said by all. the ground
work is being done for the next world war while our elected folks are looking into the real problems like
NFL spygate. Will we be able
to wake up or go on the ash
heap of history like so many
self absorbed civilizations
in the past.

Alex - normally I wouldn't argue with a transmission planning engineer, but:
a) solars' storage may work 24/7 but solars themselves don't. Solars don't work during nights, only during days.
2) 1000MWs is very little. A single Areva EPR nuclear reactor is 600MWs more powerful. And if America cannot recycle its spent nuclear fuel, France can. There is already a huge nuclear waste recycling facility in La Hague (50), France.
http://en.wikipedia.org/wiki/COGEMA_La_Hague_site

If I was President I would tell Al Gore and his new agers to shut up now. The lies are starving people around the world and giving Islam a step ahead. Many countries have oil and we are one of them. I say dril and hurry up..and some say building refineries takes ten yrs,,hurry up !! And despite all who don't care or believe, Israel is going to hit oil. In Ezekiel , he tells us they become the wealthyest nation in the world,,they aren't now, so how do you think they will?? Zion oil will hit oil. And why in the devil did we ever build the Saudi's refineries? Oh, thats right, the global freaks , on both sides , left and right. and consertive,,gone long ago. How blind. Wil there be war? you can bet you life on it. not only nation against nation, but civil wars, black against white, and ethnic against ethnic..anyone who can't see that, go read your bible that most won't or don't know how to read..It has never been wrong. and guess what, Israel will win this last war too. IN the meantime, lies are in all gov, just as it is written. the rich want to rule the poor and will for awhile,,denial is everywhere in and out of religions..It doesn't matter what you think, it is what G-d says will be..He never does anything, but to tell us first. more up to date than the times. You see, Sunni against Shiite is ongoing, and Islam is here too. You can sleep for a while but one day you will be too hungry to eat if you had it..ZZZZZZZZZZZZZZZZZZZZZZ and when they say peace. then comes sudden destruction..you can take that to your bank..

Whatever is wrong with the USA, the professional, political parasites are to blame. They cannot lie their way out of anymore catastrophies. Their greed and hunger for power is in plain sight. They do not give a rat's @$$ about me, you or our country. Their ONLY concern is keeping their position of power. Until "WE THE PEOPLE..." vote EVERY incumbent out of office our country will continue on a deadly spiral into socialism. Obama and Clinton know that socialism has been, is and always will be a miserable failure. Yet both of them are hell bent on destroying our country with socialism.

The insanity of the oil situation is quite simply this, we are spending billions every day for foreign oil. That money is used by Muslims who sponsor terrorist that are sworn to kill ALL infidels in their quest for their Caliphate of world dominance. The health, welfare and safety of wild animals is more important to professional, political parasites than ours. Why do you continue to vote for these morons? Everything is going to be worse than today. Tomorrow prices will rise on everything you purchase...because we are dependent on foreign oil. All we get are stupid, lamebrained excuses by these morons who insist on creating fuel from FOOD. Why do we allow these fools to remain in office?

Here is the list of demands handed to me recently by Saudi Officials:
Green Cards
Access to the CIA FBI and other acronym driven security thingies.
Women. Lots and lots of white women.
College. We want to go to college.
Flight schools.
Truck driving schools.
We don't have these things in Saudi Arabia.
We want to buy the following bits of inconsequential property. ANWR in Alaska. The Northwestern part of North Dakota.
Louisiana.
The Gulf of Mexico.
This is just for starters. We will be back at Christmas time with a new list.
PS. The King wants another segway.

Saudi Arabia wants to be rich(er). That's the long and short of it. Since OPEC is a monopoly, and oil is an essential good, they can charge whatever they want short of a price that provokes a severe response from the U.S.

In the short term, the one bit of leverage I think we have to possibly persuade the Saudis to supply more oil is the Palestinians. Tell Abdullah that unless the price of oil goes down to $50 a barrel, we'll look the other way and leave the Palestinians to fend for themselves at the mercy of Israel.

The sad reality is that Americans are not going to accept "radical social reengineering" that would be required to lick this problem. If we were, it would have already started. And any President (either party) knows that if they even attempt it, there will be a revolution. The ruling elites are scared to death of the middle class. What a mess.

In response to PNC above, personally I don't think any of the Arab countries care about Palestine or the Palestinians... they just use them for political necessity. If they truly were concerned with them, they would have created a state for them long ago. And the Palestinians themselves don't care about a nation of their own, they're just bent on the destruction of Israel.

Willi Schumacher

The Saudis know that their huge lake of oil under their Eastern Province is drying up and past the peak of production. As Judy Klinghoffer notes in her AmericanThinker piece, increasingly water is the product of their drilling. Using the OPEC cartel they want to simply maximize their declining revenues, which current speculation in the oil markets readily assures them trillions that flow into their coffers for reinvestment via sovereign wealth funds and export of Wahhabi xenophobic hate to the rest of the World, including the Muslim ummah. But Saudi Arabia is not alone in that regard, Indonesia, the most populous Muslim nation, has become a net oil importer as its reserves have plummeted. The big major oil finds are in the Gulf of Guinea and West Africa, offshore of Brazil and even the US Gulf of Mexico, that the Chinese and Cubans are exploiting. If the current speculative 'bubble' bursts, as all bubbles inevitably do like the 'dot.com' one of 1999 -2000 or the current housing bubble and credit crisis, then the flow of funds in Saudi and Gulf Emirate coffers will slow. Iran will also be effected profoundly by the oil price bubble burst as it subsidizes and rations domestic consumption. So, perhaps we have a multi-pronged approach to fend off 'what the Saudis want'. It would include Congressional investigation of the current oil price bubble and fostering market conditions that blow it up. Nevertheless, we should, even if oil prices fall to 'real cost levels' of $40 to $65 a barrel, promote the opening of US domestic and federal waters to oil production. Good examples are North Dakota and the Gulf of Mexico. We should convert the hundreds of years of coal using available technology into synthetic gas to drive our cars, trucks, airplanes and even peak power plants powered by gas turbines. Then, prior to the bow wave of nuclear energy plants (approximately 138 currently under construction) arriving on stream by 2015 wean us off hydrocarbons by converting our vehicle fleets to 'plug ins'. There are credible oil shale developments in the Green River and Bakken Formation, but require significant capital, even at these towering market prices. These suggestions and conservation would help ,materially, and not subject us to either the Saudi plan to control alternative energy source development and finally break the OPEC cartel.

So, ask yourself a question. Just who is behind a 30% run up in oil prices in the past five months, while world oil demand has increased by less than 1%? Something fishy is going on, and causing speculation. Find out who is doing it and you may be surprised as to how rapidly the oil price bubble deflates producing a Bronx cheer to the Saudis and other OPEC cartel members. But let's get going on a rational energy plan and use the markets to prioritize the solutions. Congress has to wake up on this soon, especially as this is an election year. After all their overall rating is far below that of even President Bush 18.7% versus 27%.