Bush says Saudi oil boost doesn't solve US problem

5/17/2008

SHARM EL-SHEIK, Egypt - President Bush said Saturday that the Saudis' modest increase in oil production is "something but it doesn't solve our problem" of soaring gas prices.

Taking note of the kingdom's recent decision to raise production by 300,000 barrels a day, the president said the United States must act, too, to ease the gasoline crisis. He mentioned steps such as developing alternate fuels, improving conservation and expanding domestic exploration.

"We've got to do more at home," the president said on a lawn of a resort overlooking the Red Sea. He spoke after a private meeting with Afghanistan President Hamid Karzai.

Bush said he told Saudi King Abdullah during their talks this week that the king should be concerned that high energy prices are hurting some of Saudi Arabia's biggest oil customers, including the United States.

The kingdom decided May 10 on the production increase to help meet U.S. needs after Venezuela and Mexico cut back on oil deliveries. Oil minister Ali al-Naimi made that announcement Friday.

"One of the interesting things about American politics is, those who are screaming the loudest for increased production from Saudi Arabia are the very same people who are the fighting the fiercest against domestic exploration, against the development of nuclear power and against expanding refining capacity," Bush told reporters.

"So I was pleased they had increased production by 300,000, but I'm also realistic to say to the American people, we've got to do more at home," the president said.

As gas prices keep climbing, Bush is promoting moves that long have been part of his agenda. They include opening a coastal strip of the Arctic National Wildlife Refuge in Alaska to oil exploration and production and making it easier to build new oil refineries and nuclear power plants in the United States.

All those ideas have been stymied in Congress, and critics say Bush's ideas would do nothing to offer short-term relief to families.

Bush said he made his concerns about the oil supply clear to King Abdullah on Friday in Saudi Arabia, telling the king: "You've got to be concerned about the effects of high oil prices on some of the biggest customers in the world. And not only that, of course, high energy prices are going to cause countries like mine to accelerate our move to alternative energy."

He said Saudi Arabia was increasing refining capacity as well as pumping more oil.

"It's not enough. It's something but it doesn't solve our problem," Bush said. "Our problem in America gets solved when we aggressively go for domestic exploration. Our problem in America gets solved if we expand our refining capacity, promote nuclear energy and continue our strategy for the advancement of alternative energies as well as conservation."

After talks in Saudi Arabia and a warm welcome in Jerusalem, Bush arrived in Egypt to harsh criticism in the state-run media that he was tilting too far toward Israel in Mideast peace negotiations.

In his first meeting, Bush said Egyptian President Hosni Mubarak "wanted to make sure that my approach toward the Middle Eastern peace is firm and that we work hard to get the Palestinian state defined."

Bush said that in a speech in Egypt on Sunday, "I'll make clear that I believe we can get a (Palestinian) state defined by the end of my presidency and we'll work hard to achieve that objective."

Taking note of his meetings in Israel, Saudi Arabia and in Egypt, Bush said, every meeting "helps advance" progress toward the goal of getting a state defined and dealing with complex challenges. They include border issues, the fate of Palestinian refugees and security concerns, before he leaves office in January.

"I believe we can do that," Bush declared.

On Afghanistan, Bush praised Karzai as a courageous leader and urged other nations to help Afghanistan at a donors' meeting in Paris with problems ranging from agriculture to energy. "I hope the world rallies to your behalf," Bush told Karzai. "We'll certainly help."

Karzai thanked Bush for U.S. assistance over the past 6 years. "Please convey that gratitude to the American people," he said.

Long after the U.S.-led invasion to drive the al-Qaida-supported Taliban from power, Afghanistan remains gripped by fierce fighting.