WASHINGTON - Saudi Arabia has agreed to increase its daily oil output from 9.5 million barrels to 12.5 million barrels in the next two to three years, US and Saudi officials said on Monday. The announcement came after a meeting between US President George W. Bush and Saudi Crown Prince Abdullah at Bush's ranch in Crawford Texas, where Bush had been expected to push for higher production to rein in record gas prices in the United States.Adel al-Juebeir, a spokesman for Abdullah, said the Saudi government is also pursuing a longer-term plan to increase production to 15 million barrels of oil daily. An immediate jump in output, however, would not bring petrol prices down unless they are accompanied by an increase in refining capacities in the United States, al-Juebeir said. "It will not make a difference if Saudi Arabia ships an extra million or 2 million barrels of crude oil to the United States if you cannot refine it," he said. "It will not turn into gasoline, and that will not turn into lower prices."
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The United States imports more oil from Saudi Arabia than any other country. Awaiting the arrival of Abdullah at his ranch, Bush was confident he could persuade the Saudi leader to act. "The crown prince understands that it's very important to make sure the price is reasonable," Bush said. "High oil prices will damage the market, and he knows that."
The United States has also been pushing Saudi Arabia and other friendly governments in the Middle East to initiate democratic reforms, an issue that came up during the meeting, Hadley said. Bush has pledged during his second four-year term, which began in January, to strive for democratic change in the region, citing Iraqi and Palestinian elections in January as key achievements. Saudi Arabia also held municipal elections earlier this year.
The United States also welcomed Saudi Arabia's goal of entry into the World Trade Organization (WTO). In a joint statement with the crown prince, issued after the meeting, Bush said that the US would encourage Saudi membership in the WTO before the end of the year.
The two leaders also discussed the Israeli-Palestinian conflict and the renewed international effort to move the peace process forward, Hadley said. "So the focus has been very much what we can all do - the United States, the Saudis and others - to assist the Palestinians to be able to develop the institutions of a democratic state that is prepared to take responsibility for the territory that they are going to get," he said.