Newsletter - Sep. 26-Oct. 2, 2005 - #128

In This Issue

Saudi Arabia's National Day -- A Reflection

Let Every Voice Within Our Midst Be Heard
Khaled Almaeena

Today [Sep. 23] is Saudi Arabia’s National Day. It is the first time that this event is being publicly celebrated across the land in the form of a nationwide holiday. But what does National Day actually mean to the citizens of Saudi Arabia? Is it merely a day of fun and merriment or a day for something deeper and more symbolic?  In my estimation it should be viewed as an opportunity for introspection as we not only look back at the different stages of nation-building, consolidation and achievement but also look forward to the future and all the concomitant challenges that lie ahead of us. The ability to face these in the coming years will be far tougher and more diverse than we can imagine. However, we have to rise to the occasion and meet them headlong.

Saudi Role in Energy Market Stability Cited in Hill Testimony

From testimony of Mr. Robin West, Chairman, PFC Energy before the Senate Commerce, Science and Transportation Committee on September 21, 2005:

"..Certain respected experts believe that Saudi Arabia will not be able to increase its output or even worse that its output will decline. However, we think there is a reasonable probability that Saudi sustained production can increase from about 10 million b/d now to 12.5 million b/d, with a surge capacity of another 2 million b/d. The Saudis are committed to spending nearly $50 billion to help meet rising demand for crude oil. When it comes to oil, Saudi Arabia has been a part of the solution, not the problem. Saudi Aramco, the NOC, is highly professional, and the Saudis have played the role of central banker for oil, seeking to provide liquidity and stability to the market.."

The Committee hearings examined the rise of domestic energy prices, focusing on what actions can be taken to profitably lower U.S. oil consumption. 

PFC Energy/Robin West Bio

Hughes launches US image makeover among Muslims

"Karen Hughes, a powerful confidante of President George W. Bush who has long helped shape his words and message, heads to the Middle East on Saturday as part of a new campaign to make over the U.S. image in the Muslim world. On the eve of her first trip abroad as undersecretary of state for public diplomacy, Hughes said she did not expect quick results and considered the job a long-term challenge. Some skeptics call it mission impossible..

"..Saudi Arabian Foreign Minister Saud al-Faisal said perceptions of the United States had changed because of the Israeli-Palestinian conflict. 'If you meet any Saudis, you find this is the only frustration and they are mad because they know the good part of the United States and they are mad because they see this is inconsistent with the other side,' he said on [Sep. 23].."

Saudi Storms

As hurricanes batter the American coast and send oil prices up, Al Qaeda is watching and drawing lessons

"The shoot-out earlier this month around a seafront villa in the Saudi Arabian city of Ad Dammam lasted almost 48 hours, and ended only when security forces brought in light artillery.. ..Police also found.. a large amount of cash and forged documents. It was the documents that really set off alarms. According to a Saudi Interior Ministry statement, they included forged passes to enter "important locations." The Saudi daily Okaz quoted the minister, Prince Nayef, saying the cell—which was linked directly to Al Qaeda—had planned major attacks on some of Saudi Arabia's key oil and gas facilities.."

Saudi petrochemicals, massive expansion

"The $8 billion expansion of Saudi Arabia's Red Sea refinery at Rabigh is a marker. This will raise Aramco's oil refining capacity and also lead to Aramco's first petrochemical production. Similar integration between existing refineries and add on petrochemical plants are also mooted for refineries at Yanbu and Ras Tanura.."

In the News

Interpol Asked to Trace 18 Saudi Suspects
”Saudi Arabia has passed onto the Interpol the names of 18 of its most wanted terror suspects and asked it to trace them.. .. Interior Minister Prince Naif was quoted by newspapers this month as complaining the Kingdom had not received enough international cooperation in its crackdown on militants..”

Saud Warns of Regional Conflict If Iraq Situation Persists
”Foreign Minister Prince Saud Al-Faisal said he has been warning top US government officials that Iraq is rapidly heading toward disintegration and there is the risk of a regional war.. .. Iraq’s potential division into a Kurdish state in the north, a Sunni state in the center and a Shiite state in the south would ‘bring other countries in the region into the conflict,’ he explained. Turkey has long threatened to forcefully prevent Iraq’s Kurds from declaring independence. Shiite Iran could increase its influence in Iraq, where it already enjoys strong sympathy in the Shiite-majority government..”

SAMA’s August Foreign Assets Up 4%
”Saudi Arabia’s central bank foreign assets in August rose nearly 4 percent from the previous month but money supply in the Kingdom eased slightly.. ..Rises in deposits with banks abroad and investment in foreign securities boosted Saudi Arabian Monetary Agency’s foreign assets to SR509.7 billion ($135.9 billion)..”

Saudi Arabia Spends Over A Billion Dollars To Secure Borders With Iraq
”The Kingdom of Saudi Arabia had this year spent over 1.06 million US dollars to secure its borders with Iraq, USD 586 million more than the sum spent last year.. ..the sources saying the authorities had in the first six months of 2005 arrested 682 Iraqis upon attempt to infiltrate the borders and between 2001 and last August confiscated over 14 million weapons and large amounts of explosives and ammunition..”

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