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Posted on Sustainabilitank.info on November 17th, 2005
by Pincas Jawetz (PJ@SustainabiliTank.com)

According to the Epoch Times of November 17, 2005, US Secretary of Energy, Mr. Sam Bodman, made his first visit to Saudi Arabia since joining the Administration a year ago.

According to Reuters, he met at the International Energy Forum in Riyadh his counterparts from the oil exporting countries, as well those from other large consumer and producer countries. The contention is that Mr. Bodman was expected to talk also about non-oil subjects such as human-rights — seemingly a first for this sort of meetings.

Also, according to the International Energy Agency (IEA), the Saudi Kingdom may have to raise its energy production from the present 10.5 million bpd to 18 by 2030, and the US said to 14 by 2010 and 16.3 by 2025. An unnamed Saudi official said that it is not in their interest to “burn” their resources.

Former Bush Administration Ambassador to the Saudi Court and present partner at Baker Botts LLP in Texas said he thinks the US-Saudi relationship is enlarging to “principle as well as expediency of security and oil.” Another Baker and Botts partner, Stephen Matthews, residing now in Dubai, has an additional view that points at China: “In China, Saudi Arabia has found a trading partner willing to exchange oil for arms and not question the kingdom’s civil rights practices.” What does all of this mean to the availability and price of oil?

At the recent US Senate hearings, Exxon Mobil declared that the price of oil is set by Riyadh - that is one week in advance.

On security, the Saudis still need the US but are hedging their bets - China may be the ally on the horizon. China wants oil and, like in Sudan, can provide arms and diplomatic backing without asking questions. So, how will this impact on the perception in Washington of needing an energy policy that starts the US on a path of disengagement from its present excessive reliance on oil?

Baker Botts LLP may have the inkling that frightening the US into Saudi obedience may be impractical for the long run in a world of shifting sands. Is it good news for people worried about global climate change?

Could we say that future competition for oil from China, as bad as it could be for civil rights in oil producing countries, may actually have a positive effect on the global environment? This clearly has no implications regarding the slow democratization in China proper, neither does it imply worsening of the conditions in the Muslim countries.

Do you still remember “A Second Going - Hand in Hand”, US-Saudi partners, Crawford ranch, Texas, publicity photo, of several month ago?  www.SustainabiliTank.info April 26, 2005).

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