Business | Oil & Gas
US must reduce reliance on oil - Bush
Spokesman says White House is disappointed with Opec's decision to keep output steady
- AP
- Published: 01:24 March 7, 2008
- President Bush walks past alternative fuel-powered trucks during a tour of the trade show at the Washington International Renewable Energy Conference on Wednesday.
- Image Credit: AP
Washington: President George W. Bush said on Wednesday that the United States has to "get off oil" to reduce dependence on foreign suppliers and declared "it should be obvious" that high demand is creating painful gasoline prices.
Bush's assessment was at odds with that of the 13-nation Organisation of Petroleum Exporting Countries, which said before he spoke that it would not put more oil on the global market because crude supplies are plentiful.
Opec president Chakib Khelil told reporters in Vienna, Austria, that the problems in the US economy were a key factor in the organisation's decision to hold off on any action. "There is sufficient supply. There's plenty of oil there," he said.
In an address to the Washington International Renewable Energy Conference, Bush said, "It should be obvious to you all that the demand is outstripping supply, which causes prices to go up."
Bush also said on Tuesday that it's a "mistake to have your biggest customers' economies slowing down as a result of higher energy prices."
The White House said it disagreed with Opec's decision to rebuff that request, and that the oil-producing nations themselves could be hurt as well.
"Opec should not be shortsighted about the economic impact of its production decisions," White House deputy press secretary Tony Fratto said.
Oil prices surged past $104 a barrel for the first time after the Opec announcement.
Gas prices are running over $3 a gallon (3.8 litres), and some analysts expect prices to rise to near $4 a gallon as vacation driving picks up.
Bush's speech was aimed at touting his administration's efforts to increase the use of renewable energy sources.
Bush is "disappointed" that Opec chose not to increase output, the White House said on Wednesday.
"He would have liked Opec to have made a different decision. He is disappointed that they decided not to increase production," spokeswoman Dana Perino said.
Bush "does not think it's a good idea for their biggest customers, such as the United States, to have an economic slowdown, in part because of high gas prices.
"We know that there is high global demand and there is tighter supply. So what we would like is to see an increase in supply from Opec," she said.
Perino also disputed Opec's charge "that our economy is being mismanaged," saying that "the US economy is fundamentally sound with good structure."
"We are in a little bit of a slowdown right now. We have taken measures to mitigate against that," she said.
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