Two stories on CNN.com today show how the deepening oil crisis is sending the addicted US government searching in desperation for more petroleum to come to market, as prices have broken records every day for the last week.

While Congress votes to cut off sending more oil to the Strategic Petroleum Reserve, Bush is in Riyadh pleading with the Saudis to increase production, and being outright denied (see below). Though CNN doesn’t say it, the reason the Saudis won’t do it is most likely that they simply can’t. If Matthew Simmons’ book Twilight in the Desert is correct, Saudi Arabia has no more spare capacity, and therefore can no longer be called on to increase supply when the market gets tight. The US is up the creek without a paddle.

No small fix here or there is going to be anything but a drop in the bucket as this crisis develops. $4-per-gallon gasoline will be remembered as amazingly cheap in a few years, and $100-per-barrel crude oil might never be seen again.

The only solution to this crisis is to create an economy that does not rely on oil, or fossil fuels of any kind for that matter. We can accomplish it by focusing on meeting human needs above the interests of corporations and governments, who are the real petroleum consumers. One positive first step would be to abandon the $3 trillion War against Iraq and use those resources to provide universal health care and universal higher education in the US, the most backwards industrialized nation. Likewise, the smart money is on dropping ethanol and other so-called biofuels like the dead weights they are, and once again making all those millions of tons of corn and other grains available for hungry people to eat.

Common sense forever evades a junkie government.

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Saudis rebuff Bush’s request to pump more oil

http://www.cnn.com/2008/POLITICS/05/16/bush.saudi.arabia/index.html

RIYADH, Saudi Arabia (CNN) — Saudi Arabia Friday rebuffed President Bush’s request to immediately pump more oil to lower record prices, saying it does not see enough demand to increase production.

President Bush walks with Saudi King Abdullah in Riyadh Friday.

The Saudis said they would increase production if customers demanded it, Steven Hadley, Bush’s national security adviser, said.

Bush is spending much of the day in closed-door meetings with King Abdullah, the Saudi ruler.

Friday’s visit was Bush’s second trip to the kingdom this year, coming as oil prices reached a new record high Friday of more than $127 a barrel. When he traveled to Riyadh in January, his request for the Saudis to pump more oil was also rejected.

Oil prices were just below $100 a barrel in January, and Americans were paying an average of $3.06 for a gallon of gasoline. They were paying $3.78 on Friday, following more than week of record highs every day. Read the rest of this entry »