Ali Velshi
Senior Business Correspondent
It’s not easy being the boss.
And I don’t mean YOUR boss - I mean the boss of America.
Oil AND gasoline both hit records AGAIN today, right as President Bush was landing in Riyadh, Saudi Arabia. What with the pressure back home, the president could hardly wait for the initial pleasantries to be exchanged before he popped the question:
“Could you all make a little more oil?”.
The Saudi’s, apparently anticipating the question, said “No.”. They said they’ve been adding more oil to the world pot from time to time, as they see fit, but they just don’t see increased demand for oil right now. So “No, Mr. Bush. But thanks for asking.”
Its not clear WHY they didn’t agree to help, but at least SOME people say the Saudi’s have less oil than they’re admitting to having. But that’s another story.
So what’s a Prez to do?
Ask him.
All I know is that a few hours later the US Department of Energy decides its going to stop adding 76,000 barrels a day to the Strategic Petroleum Reserve - those four big tanks in Texas and Louisiana that hold 700 MILLION barrels of emergency oil for America. Congress asked, um, ordered the President to stop filling the tanks (which are 96% full already) to reduce demand for oil, thinking it’ll bring the price of oil down. It won’t. One trader said that 76,000 barrels is less oil than is traded in a single minute in the United States.
But after the Saudis gave the Decider the Smackdown, he had to do SOMETHING to show he was serious about the price of oil, and this was the something he did. I guess he figured it was the right thing - or the ONLY thing - to do.
For the record, oil closed the day higher. For the record - that’s another record.
| Cindy |
May 16th, 2008 5:53 pm ET Yep…it ain’t easy being the pres for sure! I really don’t think that there is anything that anyone can do to bring down the price of oil to make gas cheaper here in the states. We just have to suck it up and pay at the pump or walk! LOL That is why we seriously need to look for other sources for our fuel than oil. Hopefully we can get on that and get something figured out so we aren’t so reliant on these other countries. |
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| Angela, Ottawa, Canada |
May 16th, 2008 5:53 pm ET Even if they’d agreed, that still wouldn’t help with the refining capacity shortage. |
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| Michael, NC |
May 16th, 2008 6:02 pm ET Wow. This is really encouraging…um wait, no its not. |
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| Cheryl M. |
May 16th, 2008 7:18 pm ET It kills me that we’re practically begging other countries for more oil. The US really needs to become less dependent on other countries, and just not for energy needs either. Have you tried to buy something made in the USA lately? Pretty hard to come by. Especially clothing. We really need to reverse this cycle we’re in,we’d be putting people back to work in the US, helping our own economy, and wouldn’t be so dependent on others. |
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| Linda in Va |
May 16th, 2008 7:31 pm ET The “prez” should be the leader that finds a way to get us out of this oil dependence but then again he’d probably lose money doing so. These politicians are a real joke, all of them tied to big money and not to the good of the citizens of the country who they serve. Until we can find the answers to the problems of the USA we can not solve the worlds problems. Can you whisper in the republican ears that violence begats violence. |
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| D-Dog |
May 16th, 2008 8:10 pm ET Tell the Democrats not to ask Iran what they know about you. |
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| Annie Kate |
May 16th, 2008 8:38 pm ET Hybrid cars and mass transit look better all the time. Gas prices are so unbelievably high and take up more and more of the family budget and there doesn’t appear to be any end in sight. Pretty soon buying gas may be out of reach for a lot of us. Annie Kate |
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| Jan from Wood Dale IL |
May 16th, 2008 9:12 pm ET Not that I expect this current administration to do anything, but hopefully the next will. I read a recent study which showed profit margins for oil refineries were at record highs. In 1999, for every gallon of gas refined from crude oil, US oil refiners made a profit of 22.8 cents. By 2004, the profits jumped 80 percent to 40.8 cents per gallon of gas refined. Between 2001 and mid-2005, the combined profits for the biggest five refiners was $228 billion. In 2004, a Government Accountability Office report also found that mergers in the oil industry directly led to higher prices, and this report didn’t even include the large mergers such as Chevron/Texaco and Conoco/Phillips. I believe Senator Clinton has the right idea that a profit tax cap needs to be placed upon these oil companies, and our antitrust laws in regards to these mergers need to be reviewed. Otherwise, no matter what the price of crude oil, these refineries will still dictate the price we pay at the pump in order to increase their overwhelming profits. |
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| Kent, Illinois |
May 16th, 2008 11:44 pm ET Stop buying from them. Open up the reserves and start using them. It wouldn’t take long for the Saudi’s to reconsider. |
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| Susan C Fronek |
May 17th, 2008 12:25 am ET George got the kiss of death. The Saudi’s no longer see him as the most powerful man in the world. He has been had. And deservedly so. His association with the Saudi Regime is a known fact. Could he possible believe they would continue their alliance once he was of no use to them? |
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| Raymond Rijkse |
May 17th, 2008 5:55 am ET It’s ironic for America to continuously depend on foreign aid when we clearly have our own available resources at our exposal to resolve half the problems. What of the oil reserves in Alaska? Can that possibly make any significant impact in our dilemma? I surely hope so considering I recently bought a new Shelby GT500, the beast of all beasts yet gas-guzzling is an understatement. Yup, I’m eye-balling this one with a keen eye! |
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| Pat M |
May 17th, 2008 7:53 am ET Ummm lets see, George has put his Nation’s economy into the worst state it’s been in for decaes. But, it has nothing to do with the Trillions he spent on the Iraq War, let’s make that perfectly clear. Ummm Let’s see, Bush and Cheney are both involved with the Oil Magnates of the world but Bush still had to make a trip to Saudi to plead that they produce more oil so his Nations’ oil prices will go down. Ummm Let’s see, he made his oil pleas just after his most staunch supporter of his Presidential Campaign, McCain, makes the statement that he will ensure the Saudi’s son, Osama Bin Laden is captured and killed by 2013. I can see where that statement would make the Saudi’s more agreeable to George’s plea! Ummm Let’s see Bush is the man who turned the Mid East upside down with an attack on Iraq due to a mere suspicion that proved to be false. I can see that making the Saudi’s more agreeable to assist the US. Umm Let’s see Bush has put the US in debt to China for Trillions. Now China is in need of aid as a result of the earthquake that will cost Trillions in restoration. I wonder how long China will wait to collect on the US debt given such disastrous times on their homefront? Ummm Let’s see Bush…seems to have put the US in a corner that will be difficult to get out of. Ummm Let’s see and America is all for electing a man with less political experience, less foreign experience, less knowledge, less years in the political arena, virtually unknown and with more questionable associates than Bush had. Is it just me, or does this seem too utterly bizarre to really be true? |
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| Tina |
May 17th, 2008 12:36 pm ET Ali, didn’t the U.S. go through something like this in te 80’s? I think the Prez should …. Drill for more oil and let the states, like La, reep the benefits from it. I mean even Co has oil. I was out sweeping under the carport when I heard a strange sound, I walked out and looked down the street. I heard horse’s hooves. A man was riding a horse down the road. Click, click, click. If it gets that bad, I want a buggy. |
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| Gary Chandler in Canada |
May 17th, 2008 1:03 pm ET The best headline!? |
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| M O'Connor |
May 17th, 2008 6:26 pm ET With all the discussion by Senator Clinton of imposing an excess profit tax on the oil companies (I am not affiliated with the oil business) I wonder if she has ever compared their income statements against the likes of Microsoft (Chevron made roughly 15% pre-tax while Microsoft made close to 40% pre-tax profit). We need to be very careful what information we feed the American people or profit will become a dirty word… America was founded on capitalism where supply and demand rule the price… also, how does our cost per gallon compare against the rest of the world? |
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| Ruth |
May 17th, 2008 7:52 pm ET I was thinking, maybe it’s time to go back to the Horse and cart? LOL. It wouldn’t be a bad idea, the Environment would benefit greatly and the “Oil cartel”, will not. LOL. |
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| Jim |
May 17th, 2008 11:16 pm ET Why would the Saudi’s help? They are doing just fine. So is the boss. There will be a true oil shortage in the future when we suck the earth dry but that hasn’t happed yet. We are fighting wars and many more in the future because of of it. Our grandchildren will have to deal with the actual end of crude oil and the consequences of burning it. The “market” is trying to find how much they can charge for oil. A salesman will tell you cost and price have no relation to each other. You price at what the market will allow. The market works for consumers only when there is competition willing to lower their price by providing an alternative. No alternative is available by the purposeful efforts of oil company and automotive company lobbyists supported by government officials over many years. The Government (we the little people not big business interests) will have to step in to get us off our addiction to oil and non renewable fuels as there is no profit motive yet for corporations. Regulation will help. Providing alternatives through programs to build mass transportation, fuel efficiency, hydrogen infrastructure, fuel cell cars, electric cars, wind, solar, geothermal, microhydro, ocean current, and many others while stimulating the economy. The money we waste around the world in wars and at the Pentagon would go a long way toward funding alternatives. |
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| Mark from Florida |
May 18th, 2008 4:12 pm ET I just can’t believe what I’m hearing on TV and reading in the newspapers about oil AND short term thinking of the government and the American people. First, shouldn’t we all have learned our lesson about oil in the early 70’s and been seeking alternatives since then ? Putting that aside, all I hear ( or read ) is the following stupid statements: Bottom line….American’s short term thinking has done nothing but to squeeze the middle class, reduce out standard of living, move jobs to other countries, reduce our ability to educate our youth, and enable countries who would like to see America fail. Until we can think long term, reward business to invest in the place where they sell there goods, and focus on energy alternatives we will continue to hear these half baked ideas while our standard of living continues to degrade. The good news is that most of our children aren’t working right now to support the family ( mothers and fathers are ) so we have another group that we can say “times have changed” and you now have to work to support the family and our American dream ! Keep driving those SUV’s, shopping at WalMart, and running up those credit card bills ! |
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| Randy Tipton |
May 19th, 2008 8:17 am ET Gas prices soar. I would not have a problem with paying more for gas to be weaned off of OPEC oil. I wish we could be self sufficent on power generation. Hydrogen fuel is the way to go in the future we need to invest our rime and money to make this a reality for the enviroment and stop being dependant on oil. |
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| James Gray |
May 19th, 2008 8:47 am ET It’s a shame we couldn’t use the oil from the Elk Hill oil reserve the federal government had from 1920 until Al Gore helped sell to Occidential Petroleum when a barrel of oil was $30 to fill the SOR.!! |
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| Maggie |
May 19th, 2008 10:33 am ET The bottom line is the average American is making 3% less than he/she did last year, yet we are paying 6% more in gas and food prices. Not to mention the jump in health care. We cannot afford to live at the medium standard of living. In the last three months I have witnessed foodstamp receipients triple, gas prices and food prices soar. American cannot be the keeper of the world, we are running out there to help China and the earthquake victims, the Burma victims…what about Americans? We cannot afford to pay attention, yet our Government is taking care of everyone around the world but us. Take the Aid to China, Iraq and Burma and give Americans those funds to help us pay for our overpriced gas, Mortgages, College and food. How about we use the funds set aside for the Iraq war for the next two years and use those funds for Healthcare for Americans. I am tired of being the ones to help everyone else. We helped the Saudis leave the USA right after 9/11, and those money hungry animals will not produce more oil for us? Grow some balls Bush and get it done. You have oil connections Bush, use them…. |
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| Claudia, Houston, Tx |
May 19th, 2008 11:01 am ET Is there a possibility that the U.S. doesn’t want to drill inside it’s own country because the big oil companies don’t want to share the wealth with the American people. Remember the U.S. expects Iraqis to share their oil wealth with it’s citizens, seems like a lot of double standards going on here. |
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| Preston |
May 19th, 2008 12:14 pm ET Is it easy being the President? Sure if you had a clue as to what you were doing, Does anyone out there think Ronald Reagan would I didnt think so. |
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| jenn |
May 19th, 2008 12:29 pm ET I have always wondered how much gas a NASCAR event uses…not only the race cars, but the fans…the buses to haul the pit crews etc. Anyone have a guess–timate? |
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| Lew Tobias |
May 19th, 2008 1:12 pm ET How is “Consumer confidence” calculated? |
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| Kyle Anderson |
May 19th, 2008 1:14 pm ET Everyone keeps talking about “How high will gas be this summer” but I am orginally from Minnesota and I have yet to hear anyone do any prediction or any talking about doing any preparations for this winter. How high will heating oil be at the end of summer? Do we expect a certain South American dictactor to again provide heating oil to those in need or do we start thinking of these people who will most likely be paying heating oil prices that will send them into bankruptcy faster than sub-prime loans. |
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