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View Full Version : Bush Seeks Relief From Record Oil Prices



DrMaddVibe
04-25-2005, 07:04 AM
Mon Apr 25, 1:47 AM ET
By JENNIFER LOVEN, Associated Press Writer

CRAWFORD, Texas - President Bush is seeking relief from record-high gas prices and support for Middle East peace as he opens his Texas ranch to Crown Prince Abdullah of Saudi Arabia, the world's largest oil producer.


Bush said he'll make clear Monday that it's not in Saudi Arabia's interests to keep oil prices high. "If they pinch the world economy too much, it'll affect their ability to sell crude oil in the long run," he said in a television interview last week.

The president also said he's looking for "a straight answer" on how close the Saudis are to reaching production capacity. "I don't think they're pumping flat out," Bush said.

Bush's goal of spreading democracy across the Arab world also faces a difficult test with Saudi Arabia, a longtime ally ruled by absolute monarchy. Traditionally Bush holds news conferences with visiting foreign leaders, but there will be none during this visit because Abdullah rarely talks with reporters.

Monday's meeting marks another step in a quickening pace of U.S. involvement in the Mideast. Two weeks ago Bush met at the ranch with Israeli Prime Minister Ariel Sharon and said Israel should abandon plans for new construction of Jewish settlements in the Palestinian territories. The Saudis believe the administration's strong support for Israel harms prospects for Middle East peace.

Despite the difficult matters, Robert Jordan, a former U.S. ambassador to Saudi Arabia, said the stage is set for a much friendlier meeting Monday than three years ago when Abdullah first visited the ranch. For one thing, the late Palestinian leader Yasser Arafat, a polarizing figure, is now gone — replaced by an elected president of the Palestinians, Mahmoud Abbas. Abbas will have his own meeting with Bush in the next few weeks.

To lay the groundwork for Monday's meeting, Vice President Dick Cheney talked with Abdullah over lunch Sunday in a Dallas hotel.

Jordan noted that Saudi officials also have played an instrumental role in persuading Syria to withdraw its troops from Lebanon. They have been supportive of increasing oil production at crucial times. And Abdullah has taken some initial steps toward introducing democracy to Saudi Arabia by holding elections for municipal councils, even though women's rights remain severely restricted, political parties are banned and press freedoms are limited.

Likely to be on Abdullah's mind is a Saudi proposal that would give Israel normal relations with Arab nations only in exchange for its return to its borders before it captured the West Bank, Gaza Strip and east Jerusalem in the 1967 Middle East war. Although Arab leaders last month endorsed that approach, Jordan said Abdullah — well aware of Bush's position that the "new realties on the ground" of Jewish settlements make a full Israeli withdrawal unrealistic — is unlikely to come in "with some flat demand."

Bush, meanwhile, hopes to nudge Abdullah into giving Abbas additional financial and political support for efforts to rein in militants and build the infrastructure for a viable, stable Palestinian democracy.

The global cost of oil will be at the top of Bush's agenda, with prices at the pump now over $2.20 nationwide.

Saudi Oil Minister Ali Naimi promised last week to increase production capacity to 12.5 million barrels per day by 2009 from the current 11 million limit and, if necessary, eventually develop a capacity of 15 million barrels per day.

The kingdom now pumps about 9.5 million barrels daily.

The best-case scenario for Bush, Jordan said, would to secure a commitment from Abdullah to explore additional oil fields and invest in additional production capacity. The United States could offer to help by providing technical expertise or helping to build storage facilities for reserves, he said.

Counter-terrorism efforts are another key topic. Bush's White House-based homeland security adviser, Fran Townsend, is meeting with her Saudi counterparts on the sidelines.