Russia, Saudi Arabia Sign Oil Agreements

[NNN0LHI]

We are really phucked now.

http://www.guardian.co.uk/worldlatest/story/0,1280,-3099445,00.html

Tuesday September 2, 2003 7:59 PM


By VLADIMIR ISACHENKOV

Associated Press Writer

MOSCOW (AP) - Russia and Saudi Arabia - the world's largest oil exporters - signed oil industry cooperation agreements Tuesday during a landmark visit to Moscow by the Arab kingdom's ruler.

The two sides also were expected to take up the sensitive question of whether rebels in the secessionist republic of Chechnya receive funding from Saudi charities.

Crown Prince Abdullah, who met with President Vladimir Putin, is the first Saudi head of state to visit post-Soviet Russia. A Saudi crown prince last visited in 1932.

``This day will go down in history as it opens a new era in the Saudi-Russian relations,'' the prince said during talks with Putin and other officials.

more

[kentuck]

1. Saudis tell Bush....

Okay, MF'er, just in case you were thinking of making those 28 pages public....

[Turbulence]

2. putin socks it to bush alright

wonder where he is at in his collaboration with Iran's nuke program. He as generally insisted he is not involved, I beg to think otherwise. Could be trouble.

[legin]

3. From a long article

<<snip>>

In the fall of 2001, Russian President Vladimir Putin and a number of oligarchs who had assumed control over some of Russia's biggest oil companies stepped into the breach, arguing that Russia could be the new strategic partner to the US. They showed that Russia had reversed its huge decline in oil production, and could raise production by a million b/d per annum for the foreseeable future. Higher oil prices and a strategic deal between Putin and the oligarchs were responsible for this turnaround. By the deal, Putin would guarantee the oligarchs' recent and very controversial acquisition (outright theft in most cases) of the Russian oil companies. In return, the tycoons would make substantial investments in the Russian oil sector, financed through the repatriation of their overseas assets. Putin took this idea to Washington and to Crawford, Texas. He guaranteed safe passage for crude oil from the expanding oil and gas sectors of the Central Asian republics. Foreign oil companies had developed the giant Tengiz field on the Caspian in Kazakhstan and built a pipeline to transport it to the Novorosissk port on the Black Sea. Russia also hinted that it would remove roadblocks to the Baku (Azerbaijan) to Ceyhan (Turkish port on the Mediterranean) pipeline that would transport Azeri crude into the Mediterranean.

Resilient Status Quo

These dramatic gestures, as well as the crash of the stock market in the fall of 2001 and prospects of a deep recession, frightened Saudi Arabia and OPEC going into the winter months of 2001 and early 2002. In the immediate wake of the September 11 attacks, the Saudis had unilaterally raised output as a gesture to the US and as a means of calming market jitters. Now, with a collapse in demand looming and rising non-OPEC supplies, Riyadh and other OPEC members feared that global stocks would rise rapidly, particularly in the spring months of 2002.

They called on Russia to cooperate with OPEC in cutting back production, but were rebuffed. Russia was playing a game of chicken with OPEC -- a collapse in oil prices would not have served its economic interests either, since it had just emerged from recession and financial crisis. A large part of Russia's economic recovery could be attributed to higher oil prices and the oil sector boom, which attracted substantial sums offsetting massive capital outflows. In the short run, Russia got the best of both worlds. OPEC cut supplies massively to support prices above $20 per barrel and simultaneously made room for additional Russian supplies.

But the world oil markets and US policymakers noted two caveats: because of its internal unity, OPEC was very much in control of the markets and had successfully managed prices in very adverse circumstances. Russia could not play this role, either by swinging production up to moderate prices or swinging down to shore up prices. Undoubtedly, Russia had added to diversity of supplies -- a key concept in energy security thinking within the Beltway -- but it did not have (and could not have, given that the private sector runs the oil industry) the spare capacity needed to stabilize markets.

<<snip>>

http://www.merip.org/mer/mer227/227_alkadiri_mohamedi.html

[htuttle]

4. Is OPEC gonna get a new member?

Since Russian oil is fairly expensive to extract (I don't think they even bother unless the price is above $25/barrel), it would certainly be in their interests to do so.

[NNN0LHI]

6. They will now be able to set the price where they want it

These two countries now control most of the worlds oil. We will never see oil below 30 dollars a barrel again. Its all over now but the crying.

Don

[Nottingham]

5. I see Saudis being Power Brokers the Royal family!

Its Interesting where their Money goes! Funding for Terrorists

These Sheiks Need to GO! :bounce:

[Robin Hood]

7. Get ready for 5 dollars a gallon.

There is a new world order developing and Bush left us with our pants around our ankles.

[NNN0LHI]

8. If we are lucky we will end up paying 5 bucks a gallon

I don't think we are going to be that lucky.

Don

[reprobate]

9. I think you're right. I don't want to see $5 gas, but at the same time,

At the same time it would be a pleasure to see all the H2s, and caddy suv's parked for good. Don't know about anywhere else in the country, but here in central florida the one thing suv drivers have in common is a complete lack of any courtesy on the road. They ride your bumper, intimidate anyone slower than them, and generally behave like assholes.

Whatever $5 gasoline does to the economy, forcing those neanderthals to park their battleships and leave them there has to be one of the best things that could happen to the country.

[ozone_man]

15. Makes me laugh at all those suckers that bought SUVs.

We had it right in the 70's and 30 years later we have regressed to gas guzzling Ford Suburbans and SUVs. We deserve whatever is coming to us. The Earth will be the winner, when people finally get rid of these monsters.

[Carmerian]

10. Good job, NNN0LHI

It looks like you may have been correct in that other thread about this. It's too bad the subject hasn't gotten more notice around here, given how critically important it is. Maybe if you posted with the header of "Dean spits on Clark!" or "Kerry disses Dean!" you'd have better luck getting people to read it.


edit : fixed typO

[NNN0LHI]

11. Thank you Carmerian. I don't get it either?

This is the most important story of the day here. Maybe of the year? I just don't think too many understand the importance of this? That is a shame too, because the implications of this story will have a lasting effect on each and every one of us for the rest of our lives. Probably for our children and their children too. Thanks for noticing, and welcome to DU.

Don

[Mel]

26. what other thread?

I want to read it and can't seem to find it I'm still going to keep trying to find it.

I seem to remember, I don't know who here at DU predicting something like this happening? Was that you?

This is bad real bad but the one thing we can't forget is that water is next and it's already started.

Was there ever any doubt in anyones mind around here that Putin is playing chess and Whistle-Ass is playing checkers? We are so screwed.

[Carmerian]

27. Mel

...this one

[Mel]

29. Thank you Camerian

and Welcome to DU!

[David Zephyr]

12. Well, Now the Saudis Own Putin Like They Own Bush.

n/t

[NNN0LHI]

13. Putin is supplying the muscle to keep us from taking the Saudi oil fields

Together they now own us.

Don

[htuttle]

14. I think that's right on the mark

Balance of power, and all that...

[David Zephyr]

17. Hmmmmmm

You may be on to something Master Don.

[BeFree]

24. China

What will the Chinese do? They can't afford $5 a gallon oil. None of the Far East can. Look like it's all coming together for that old biblical prophecy. And why not? It's as good as any other.

[Beetwasher]

16. Out With the Old, In With the New!

Looks like SA might be shopping around for a new bodyguard...Uh Oh spaghettio!!! Now THATS what I call diplomacy! Sheeeeit, this really sucks...I'm glad I don't own a car...

[grasswire]

18. the thrill is gone

What a rube.

[Nottingham]

19. Saudi Prince Abdullah on historic visit to Moscow Tuesday with large deleg

Saudi Prince Abdullah on historic visit to Moscow Tuesday with large delegation of financiers and oil experts signs five-year oil industry cooperation agreements with Russia.

DEBKAfile reports: Abdullah offered Putin substantial
iers Saudi investment in Russian oil development to buy Moscow’s non-cooperation with US in Iraq and development of its oil resources. He also wanted a joint price regulating mechanism with Russia.

Putin also asked Saudis for help against the Saudis Terrorist in Chechyna.


http://www.debka.com/

Is it me or are the Saudis looking like Terrorists! :bounce:

[ewagner]

20. I think it works something like this

Putin and Saudi set prices, control flow of oil, making Iraq's production irrelevant.

Putin becomes the protector of the Saudi Royal family because Bushco and the neocons are ready to withdraw support and throw them to the wolves.

The US continues to get hammered by (ahem) Saddam Loyalists in Iraq and is eventually forced to turn control of Iraq over( initially) to a Multi-National governing council. Have to give up some control of oil to do it. Eventually Iraqi's control Iraqi oil. Join OPEC. Hence Russia + Saudi +OPEC control 99% of world's oil supply.

I think this is a restatement of what all of you were saying before. Did I get it right?

[NNN0LHI]

21. The only thing you left out is that we are really screwed. Big time n/t

[Nottingham]

23. I'll Add I wouldn't trust a Saudis Royal Family Sheikh

either!

These guys have a Terrorist funding Network that makes the CIA look like childsplay! :bounce:

[htuttle]

22. Diplomatically speaking, it's been Boris Spassky vs Homer Simpson

The moment I heard Bush say that he "saw into Putin's soul", I knew that Putin was going to eat Bush's lunch.

[ewagner]

25. I seem to remember

Two versions of Putin's initial comments about Bush*

The widely reported one: "I can work with this guy".

and the less widely reported one: "I can roll this guy">

[Zhade]

31. Awwwww, HELL.

You know what comes next, right?

Switching OPEC to a currency other than the dollar (probably the Euro).

Bye-bye, America. Put a fork in us, we're freaking DONE.

[Carmerian]

28. The timing is certainly interesting

Given that the last U.S. troops withdrew from Saudi Arabia only five days before this.

[teryang]

30. Are the Saudis done dismembering Russia?

Perhaps they finally realize they went way too far. At this point, Russia is unable to provide any protection at all for the royal family. It is Saudi economic leverage and support for terrorism that are its only defenses.

[Zhade]

32. KICK

Extremely earth-shaking news.

[Minstrel Boy]

33. Asia Times: "Saudis oil their Russian ties"

http://www.atimes.com/atimes/Central_Asia/EI04Ag02.html

A couple of interesting points:

Timofeev says Abdullah's visit may be a way of shoring up Moscow's support. "There are already threats. You have the example of Iraq. We won't analyze here how everything happened in Iraq, but we know that it happened by circumventing the United Nations. And in order for something like that not to repeat itself and to avoid similar risks, Saudi Arabia needs support among well-respected countries like Russia, the EU states, India and China."

...


Riyadh is not the only possible benefactor. Closer ties with Saudi Arabia would also improve Russia's standing in the Islamic world. Last month, Putin announced that Russia may seek to join the Organization of the Islamic Conference, a body of 59 countries.

...

Formally, Russia is not eligible for OIC membership because its 20 million Muslims account for less than 25 percent of its population. But Moscow may still find a persuasive argument for joining the OIC - which, according to Timofeev, would in effect cut Chechen separatism off at the knees.

"It is a well-known fact that territorial integrity is a condition of membership in the Organization for the Islamic Conference," Timofeev said. "This means that if Russia joins this organization, 59 Muslim countries will be telling the Chechens, 'Don't think you'll be seceding from Russia. That would be against our principles. Russia has Islamic status and you can only exist as a part of Russia.'"

[shirlden]

34. The whistle ass admin

has, admittedly, a goal of taking OPEC out of the oil picture. This is a point which has been ignored in the press. Russia has been playing footsie with China, India, Pakistan, and Iran for some time now, with the obvious goal of forming a second world power. Russia, China, and India combined would become the economic power of the world. I see Putin steadily working at this. I have been watching this dance for over a year now and it looks like Putin is in the lead. This could be a good thing for the world (to have more than one super power) but it will be hell for the US. Once again, our stupid but arrogant admin has not been able to see the "big picture". Will this be the first time in history that a super power has been brought down by it's own arrogance? No, certainly not. But then our arrogant bastards are not aware of history. Our commander in thief even brags that he does not read.

:think:

Check out this "lovefest"

http://newsfromrussia.com/main/2003/09/03/49768.html

[htuttle]

35. They discussed a whole bunch of topics -- including Russia joining the OIC

Here's some other interesting ones from yesterday:

Putin and Saudi Crown Prince will discuss Russia's possible accession to the OIC
http://newsfromrussia.com/main/2003/09/02/49719.html

Russia's President Vladimir Putin and Crown Prince Abdallah bin Abd al-Aziz al-Saud of Saudi Arabia will discuss the idea of Russia's admission to the Organisation of Islamic Conference (OIC) in Moscow on Tuesday, RIA Novosti learned from a source in the presidential administration.

and

Cooperation with Saudi Arabia falls in line with Russia's long-term geopolitical and economic interests
http://newsfromrussia.com/main/2003/09/02/49722.html

All-round cooperation with Saudi Arabia falls in line with Russia's long-term geopolitical and trade and economic interests, a source in the Russian president's administration told RIA Novosti in view of a visit to Moscow by Prince Abdallah bin Abd al-Aziz al-Saud of Saudi Arabia.

Wow. What Bush did to Arbusto and Harkin, he's now also done to the US.

"Now, watch this drive!"