Oil Crisis - Consumers and Producers Talks

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Special Report
June 17, 2008

The 2008 Energy Crisis: Producers and Consumers Talks Set

Editor's Note:

In November 2005 King Abdullah presided at the opening of the International Energy Forum Secretariat (IEFS) in Riyadh which sought to improve the dialogue between oil producing and consuming countries. In the latest initiative to join the efforts of consumers and producers, as global energy prices are soaring, Saudi Arabia has called for a meeting to examine the causes of the crisis and explore remedies. Global oil consumers and producers will gather in Riyadh on June 22, 2008.

This SUSRIS Special Report provides a wrap up of reporting on the Saudi call for dialogue on the crisis. It also provides links to some the voluminous reference materials on the SUSRIS web site addressing the energy component of the US-Saudi relationship and introduces a new SUSRIS Special Section on the "Energy Crisis of 2008." [Links below]

Perspective..

"..The global community faces tough choices as it struggles with how to achieve energy security. I believe we must act decisively because the current path poses a real threat of a continuing boom and bust cycle that robs us of the stability and predictability which promotes sound economic growth. At the same time, we must heed the lessons learned during previous eras of energy uncertainty and avoid repeating the costly mistakes of the past.."

The Future of US-Saudi Energy Relations - Saudi Minister of Petroleum and Mineral Resources Ali I. Al-Naimi
Center for Strategic and International Studies, Washington
May 2, 2006
[more]

"..Saudi Arabia currently supplies about 8% of total US demand, although by any measure it remains the most prolific, reliable and secure source of oil for global consumers. With the exception of the targeted oil embargo of 1973, Saudi Arabia has been one of the very few highly reliable producer/exporters of the past 30 years. Its performance in providing the world with incremental supply in time of need (eg, in the lead up to the 1991 Gulf War, during the 2002 Venezuelan strike, more recently in advance of the 2003 Gulf conflict and as prices spiked in the past two years) is unsurpassed.."

Robert E. Ebel
Chairman of the Energy Program at the Center for Strategic and International Studies (CSIS)
[more]

Reporting..

Saudi oil meeting scheduled for June 22: OPEC
"..Saudi Arabia is to host a meeting of oil producers and consumers on June 22, OPEC Secretary General Abdalla El-Badri told AFP Tuesday. "It will take place on June 22 in Jeddah," he told AFP by telephone, adding that officials from consumer countries, the International Energy Agency and the heads of investment banks Morgan Stanley and Goldman Sachs would be invited. Oil kingpin Saudi Arabia called on [June 9] for the talks between producer and consumer countries in the aftermath of fresh records on oil markets.." [more]

IEA Seeks Increase in Oil Output at Saudi Meeting
"The International Energy Agency is seeking an immediate increase in oil output at this weekend's producer-consumer summit in Saudi Arabia to ``calm markets'' in the wake of record crude prices. "The main message that will be very good is if we see an increase in production now,'' Fatih Birol, chief economist at the IEA, said today in an interview in Istanbul. Oil producers should also agree `"to increase spare capacity for the next years to come. This is what the markets need to hear.".." [more]

Oil prices slip in anticipation of Saudi output hike
"..Oil prices on Tuesday extended their retreat from record highs amid profit taking ahead of Saudi Arabia's expected output increase.. .."The Saudis seem quite willing to supply the market with more, despite their OPEC brethren's objections at a time when average gasoline prices around the country (US) are moving beyond 4.00 dollars (a gallon). Under these conditions, oil looks less and less attractive," said Mike Fitzpatrick at MF Global.." [more]

Iran opposes any Saudi unilateral oil output hike
"..Iran said on Tuesday it would be opposed to any move by OPEC kingpin Saudi Arabia to raise its oil output without a consensus from fellow members of the oil cartel. "If Saudi Arabia takes a measure to unilaterally increase (oil) output, it is a wrong move," Mohammad Ali Khatibi, Iran's new representative to OPEC, was quoted as saying by the state television website.." [more]

Saudi meet aims to soothe U.S. ire at oil price
"..An emergency meeting of oil producing and consuming countries this Sunday will give Saudi Arabia the chance to try to turn around a storm of negative publicity it has received in the United States, analysts say. Washington has been Saudi Arabia's closest ally since the 1940s when a tight relationship formed on the basis of guaranteed oil supplies in return for U.S. protection for the Saudi monarchy through thick and thin.." [more]

Oil extends fall after Saudi output plan
"..Oil fell for a fourth day on Wednesday, as more investors appeared convinced that top exporter Saudi Arabia's plan to boost supply could tame prices.." [more]

Related Material:

U.S.-Saudi Relations and Global Energy Security Conference:

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� 2008
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