Politics with Oil

NY Times quotes Saudi officials saying they don’t play politics with oil. Weblogs are famous for providing commentary on the news. Here’s my opinion. “They’re lying.” - Dave Winer

I decided to go read the statement the Times article referenced.

Every Administration over the past 25-30 years has been aware of our policy. We have been a reliable, secure and stable supplier of crude, and we intend to remain so. We do not use oil for political purposes; it is too important a commodity, and its impact on the global economy (of which we are a part) is tremendous. Saudi Arabia also does not interfere in elections. - Adel Al-Jubeir

Another strength of the weblog format is that you can point to resources that support your position. The quote below supports what I would tend to support that of Mr. Al-Jubeir.

I told him I was very concerned that the price of oil is too high, not just for America but for the world. If it was to cause a recession in any part of the world that would hurt the oil producing countries. - Bill Clinton

Or this from 1992.

While some oil industry pundits have ridiculed the notion that King Fahd is willing to curry favor with President George Bush by keeping oil prices low for the November election, this idea is not as farfetched as it may first appear. In the first place, these two leaders have a close and long-standing personal relationship which extends as for back as when Bush ran the Central Intelligence Agency. Secondly, with the world’s largest and cheapest oil reserves, Saudi Arabia has been protected by the United States or over 50 years. Most recently, America sent 500,000 troops to defend the oil-rich kingdom form Saddan Hussein. Third, King Fahd not only contributed $34 million to the Reagan-Bush Iran-Contra effort, but formally endorsed Bush for a second term. Finally, the U.S. government has repeatedly resisted multi-lateral negotiations between oil producing and oil consuming countries, preferring to rely on its close bi-lateral relationship with Saudi Arabia to define the parameters of international oil politics. - Edwin S. Rothschild

Of course, one should always explore whether one can have political concerns that do not directly invoke Saudi Arabia. Let us look at this example from 1996.

In America’s car-dominated culture, sharp rises in petrol prices spell political danger. So President Clinton this week announced the sale of 12 million barrels of oil from America’s Strategic Petroleum Reserve to hold down prices, and the Justice Department launched an investigation into possible price collusion among the big oil companies. The Republicans meanwhile called for a repeal of the 4.3 cent increase in gasoline tax passed as part of Mr Clinton’s deficit-reduction bill in 1993. - The Economist

If there are any “secret deals” going on, they don’t seem to be very effective or even very secret. George Bush lost in 1992. Al Gore lost in 2000. And judging from gasoline prices these days, they don’t seem to be doing much right now, either.

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Politics with Oil

WHAT EVER HAPPENED TO BUSH'S OIL CONSPIRACY?

Drop, Drop, Drop it Like It’s Hot Oil

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