Cheney Greets King Abdullah In SaudiLand With High Fives As Oil Sails Past $100 Per Barrel

We did it! You can well imagine the high fives, the cheers and hugs as Vice President Cheney met with King Abdullah in Riyadh last week. $100-plus oil as the norm! What a triumph for King Abdullah and his protectors and cheerleaders in the current administration, spearheaded by the oil industry's factotums in the White House, both President Bush and Vice President Cheney. Not since President Harding and his Teapot Dome has the oil industry had such an iron grip on our government. If anything can be called a success in these bleak seven years, it is the oil industry's triumphal avalanche of riches, having orchestrated with the White Houses' blessing, one of the greatest transfers of wealth in human memory.

At long last with oil sailing past $100 a barrel and its toll on the economy clearly discernible, with consumer confidence and future expectations at the lowest level since the 1973 oil embargo, with oil company profits at record levels while the rest of the nation can barely heat their homes and truckers are losing their rigs given the price of gas, our leaders, in a phony, belated display of public concern have gone to lengths by humiliating this nation, prostrating themselves before Saudi Royalty in order to "stabilize" oil prices. This after prices have ratcheted up by more than 400% since the day this administration was sworn into office with barely a whimper from Washington along the way

What patent hypocrisy! Where was the outrage when oil prices touched
$35/$40/$50/$60/$70/$75/$80/$90/$95 a barrel, all on their watch. Hardly a murmur. Quite the contrary, deep satisfaction at the bounty being brought home to their friends and supporters in the oil industry. Cheney's Wyoming, with its gas and oil deposits was booming as never before, so what if Maine and Minnesota and Montana were freezing.

For the common citizen in this nation, the administration's energy policy has been a patent disaster. A disaster environmentally, economically and frighteningly so in terms of our national security. That said, for King Abdullah, President Bush who visited Saudiland hat in hand a month ago, and Veep Cheney's subsequent visit (Abdullah - "Mister Vice President, we have been friends for a long time") brought with them impeccable credentials were the interests of the oil world's largest producer, Saudi Arabia, their primary constituency.

The debacle was cast from the outset of this administration. In January of 2001, perhaps the first order of business for the new administration was the initiative undertaken by the vice president to draw up a new energy policy. Then the price of oil was in the low to mid $20's per barrel. The result of VP Cheney's task forces' findings are contained in a 170 page report kept under lock and key in the White House, the details of which have been kept from the public and press under the rubric of "executive privilege." The list of participants who had access to the vice president in formulating this policy paper reads like a who's who of the oil industry, including high senior officers from Exxon Mobil, Duke Energy, British Petroleum, the late Ken Lay of Enron, the American Petroleum Institute among other oil industry luminaries. According to the Washington Post, "The list of participant's names and when they met with administration officials provides a clearer picture of the task forces priorities and bolsters previous reports that the review leaned heavily on oil and gas companies and on trade groups-many of them big contributors to the Bush Campaign and the Republican party."

As an illuminating aside, VP Cheney's task force was headed by its executive director, one Andrew D. Lundquist, who has since become a lobbyist representing some of the very companies that appeared before the task force, including BP, Duke Energy and the American Petroleum Institute.

Other than a token meeting, when 13 environmental groups that were gathered in the Executive Office Building for a long delayed April 2001 session, which Cheney did not attend, virtually no voice was given to environmental organizations by his task force.

The list goes on. After the occupation of Iraq one of the first order of business of the vice president as our energy czar, was to assure that Iraq rejoined our economic nemesis, and King Abdullah's golden goose, the OPEC cartel. This after the sacrifice of American lives and treasure, to the enormous detriment of the American and world economy, but to the tremendous boon both of our oil industry and Saudi interests.

And then there is the singularly bizarre mismanagement of the Strategic Petroleum Reserve whereby oil is taken off the market to fill the reserve irrespective of rocketing prices, and releases of heating oil to the hard-pressed and freezing citizenry is denied while oil companies are being showered with tax breaks and sweetheart royalty deals and depletion allowances.

And on it goes, turning the Department of Energy into a fiefdom of the oil industry, forever siding with oil interests and the oil industry's public posture on oil related issues so that it has become almost indistinguishable from the American Petroleum Institute. All to the point where responsibility for promoting technology for easing global warming was taken from the Environmental Protection Agency which could issue regulations on greenhouse gas emissions, and was turned over to the ever-pliant Department of Energy.

In the seven-plus years of its tenure this administration has done nothing of consequence to diminish our dependence on oil, both domestic nor foreign. No meaningful public policy initiatives, no meaningful mileage standards for cars, little support for alternative fuels other than ethanol and here too, maintaining a 54 cent/gallon import duty on highly efficient Brazilian ethanol.

Finally, Cheney burnishing his credentials as groveling supplicant, willfully subscribed to OPEC 'speak' during his visit, signaling his accord that the talks were "about stabilizing the market in the interests of consumer and producers alike" as if oil at $100 plus a barrel had anything to do with the interests of consumers. Then mimicking the oil patch mantra that there was very little "spare capacity," never calling attention to the 1.2 million barrels of oil a day that Saudi Arabia and their OPEC brethren have brazenly kept off the market since January of 2007, while watching the price of crude double to over $111/bbl. Not leaving bad enough alone, then giving credence to OPEC's overused canard about the value of the dollar, nary a mention that while the dollar index has fallen by near 20% since January of 2007 the price of oil has climbed by 120% over the same period.

Perhaps Mr. Cheney's title should be changed to "The Oil Industry's Regent to the American Government" instead of Vice President of the United States of America.

Comments

[ZuluKilo]

It is sad to see this author's dismissive attitude towards peak-oil. It is sad to see that he is the main oil writer here at Huffington Post. It is heartening to see that at least a couple of people here "get it."

Wake Up. It has nothing to do with OPEC, Cheney, Saudi Arabia, Big Oil, ethanol, or Matt Simmons' "cheerleading," as Mr. Learsy calls it.

It has to do with Peak-Oil and our inability to understand it. It has to do with the fact that we feel entitled to drive alone in 6000-lb SUVs to the mall 6 times a day to buy plastic crap from China and buy McMansions in the suburbs that we can't afford.

Talk about the fact that despite oil rising to $100 from $30 a few years ago, production has not budged a barrel past what it was in 2005 - 85 million barrels per day. 1000 barrels per second. And not for lack of trying.

You can argue all you want about when a peak will definitely occur (if it hasn't already), and you can whine about what OPEC says and does, but careful study of the countries involved will only leave you guessing how they will ever produce more oil.

And all the while more and more countries slip past their own individual peaks making the cumulative amount of declines that have to be compensated for by the others greater and greater. Swimming against the current.

Peak Oil, people.

[gorgol]

Its possible to look at the "glass half full" in respect to the OIL WHORES in the White House. The price has finally risen high enough to make "solar, geothermal, wind, hydrogen" viable alternatives. In the long run, this new technology will create millions of jobs...and then even more technology. It will feed upon itself..so, let these SLUGS of the U.S. Oil Cartel (Bush, Cheney, Rice and all the rest) reap what they may today, tomorrow, finally, all the green technology "we" environmentalists ever dreamed of, will be arriving. OIL skyrocketing to over $100 a barrel, is the best incentive for a "New Energy" America.

[iratior]

I liked the sentiments, summing it up as follows: " Last week in Riyadh, Vice President Dick Cheney met with King Abdullah of Saudi Arabia, to discuss "stabilizing" the price of oil. It was in the mid $20's per barrel when Bush took office, over $100 now, guess that deserves prompt attention. Besides, an election nears, better not have voters going to the polls upset about the price of gasoline.
After what Bush has done in tihe Middle East, it's hard to find that King Abdullah owes Mr. Cheney much. King Abdullah is a Sunni Muslim; he can't be pleased that Bush got Iraq dominated by the rival Shiite sect. Nor can he be pleased that the Shiite-controlled Iran is relatively more powerful, thanks again to Bush. But perhaps all is forgiven when American security contractors help Abdullah rule his kingdom with an iron hand.
That's all you need to know about Bush energy policy. Buy oil from Saudi Arabia. No funding for mass transit; not even sidewalks on the roads. No effort to keep infrastructure in good repair; there willl be more disasters like the bridge collapse in Minnesota. No development of solar, wind, or ocean wave energy. Little effort to improve the gas mileage of motor vehicles. And certainly not any extra taxes to be paid from the profits of the oil companies, even though it was taxpayer-funded military presences that made such profits possible.

[darker]

Cheney represents BIG OIL and its deals with Saudis and M.East, plus take over of Iraq oil and gas fields.
US BIG OIL wanted to boost its income so that oil costs more than it does in Europe.

In Europe the high cost is from taxation to urge conservation. in USA, BIG OIL collects nearly ALL THE MONEY PER GALLON.

A sweet deal for PROFITEERING BIG OIL, a crappy deal for middle-income Americans.

[fcsakes]

Cheney's ass is going to get whipped soon- can't wait to see the smirk wiped off that butt ugly face of his. How does a sociopath get elected, oh, that's right, he didn't.

[flibbertygibbet]

your effn dreaming !!!!!!!!!!!!

[veracity]

Here's the Wiki link for Toyota RAV4 EV.
http://en.wikipedia.org/wiki/Toyota_RAV4_EV
It looks just like any gas powered RAV4, but is entirely battery powered. On 5 hour charge it goes 100+ miles, 50 mile commute, without recharging at work. Slow acceleration, but will go 80 mph, looks & drives just like its gas powered sisters. I had heard the rumor "Chevron holds the patent for modern, high-tech batteries that will power an electric car" but I thought it was apocryphal.. until I got a chance to drive the car at an electric car club meet. Reading the Wiki link, it is true! Chevron bought the patent, and QUASHED use of these high-tech batteries, forcing Toyota to STOP producing the RAV4 EV after just 1,500 units!
The Bush admin. and their supporters have been quick to toss around the accusation or insinuation of "TREASON!", but someone should haul the oil company execs before Congress, & ask if shipping billions of American dollars overseas to buy oil from dictators is "patriotic."
Congress COULD haul those oil comapany execs into hearings and ask them, "Do you feel it is patriotic to ship billions of American dollars overseas to oil dictators?" while an alternative is already available.
And while they are at it (in my through-the-looking-glass fantasy, that is) we could ask our patriotic oil co. execs "Just what did you discuss at Mr. Cheney's 'SECRET ENERGY TASK FORCE' in early 2001, anyways?"

[veracity]

The HuffPo 250 word count is brutal!
Full electric cars have a very small proprtion of the FLUIDS of gas vehicles - no oil, antifreeze, trany- or differential fluid, not even counting gasoline!!
This would GREATLY decrease the amounts of pollutants going from roads and highways into the water shed... a HUGE plus.
Beause electric motors are so simple to manufacture and repair (replace), if 1/2 of the US auto fleet converted to electric, it would put THOUSANDS of contemporary manufacturing and repair jobs out of business... But, those jobs could be redirected to other alternate energy fields, like, oh, a few billion dollars worth of solar panels, instead of more nuclear powerplants?

[MajorKong]

I recall back in 2000 being told that we needed to put an oil man in the White House so that he could keep the price down. How's that working out so far?

[Boobaloo]

The Saudis are greedy businessmen, just like the American administration and businessmen.

So long as the American people continue to be complicit in their own ignorance by believing the lies of its government and media, we're getting what we deserve.

$100/barrel so sad.
hundreds of thousands of innocent Iraqis killed, the real crime.
4.5 million Iraqis left homeless and living in refugee camps, a shameful humanitarian disaster.

I'd say we in Americ still made out like bandits.

[BrownIzz]

When I read something like this I am so glad I did not vote for this administration either time. People are loosing their homes, can't afford to heat them and can't afford to put gas in their cars and these people are getting rich!
This is not even considering how many great people have lost their lives fighting over there to protect the oil for all of these "poor" people.
Weapons of mass destruction?? I think maybe the weapons were the two top men sitting in the White House.
Does anyone actually believe they care about the middle class?
If it was up to them or John McCain gets elected, we will be losing more and more of the so called middle class.
And the tax breaks for the rich, well "how"s that working for you"? Isn't that what we used to call "trickle down economics?" I do not have a degree in economics, but these $600.00 checks the government is sending out to some of us is almost a joke.
That is if you consider how much all these CEO's have made and that the $600.00 will hardly cover most peoples house payment or rent. Aren't they suppose to be able to go out and spend it and recirculate it?
Didn't Mr. Bush reccomend to go out shopping? I guess that is if you have a car, a job or can afford the gas to go!

[peterg76]

I'm confused - were there really high-fives, or was that satirical embellishment? Anything's possible with Cheney and his Saudi patrons.

[HatingTheGame]

Its more like bear hugs and kisses on both cheeks. The Middle Eastern equivalent to high fives.

Of course, all you football fans prefer slapping each other on the butt, and maybe a goose or two.

Not that there's anything wrong with that. Its a cultural thing.

[straightshooter]

In fact, we are getting Saudi Arabia's oil at low cost. What is perceived as a dramatic increase in the price of a barrel of oil is in fact a reflection of the massive drop in the value of the dollar under Bush and his cohorts. In terms of the purchasing power of a dollar in 2000, the price of a barrel of oil today is a mere $30.00. Given the accelerating decline of the dollar, oil producers will inevitably abandon it. They have no other choice.

[vippy]

We added another 1.4 mil gallons of oil into the FED's Reserves. We now have on hand much more than we ever had. We are also using 3% less gasoline, not a big deal since it is a drop but
that excludes the growth of the population, which cannot be measured. So the 3% actually is
much higher. If people would just drive the posted speed limit that would put more gasoline
into their inventories and they would have to take steps, either find more warehousing or reduce the price. The fact that Bush told the car industry to up their gas mileage by 1.8 should have been a clue to us that a good mileage car would be the death of their oil market. And the NEW energy
policy by our DEMS for 2020 calling for CAFE STANDARDS of only 35 mpgs by 2020 is ludicrous.
This shows that they are all against the population and all for their own investments in the future's market and hedge funds. Their income rose by 85%. Go figure!

[rmreddicks]

"And then there is the singularly bizarre mismanagement of the Strategic Petroleum Reserve whereby oil is taken off the market to fill the reserve irrespective of rocketing prices, and releases of heating oil to the hard-pressed and freezing citizenry is denied while oil companies are being showered with tax breaks and sweetheart royalty deals and depletion allowances."

I can't see that as "bizarre mismanagement". I am sure it was singularly successful for them.

[luna4]

I don't understand why the Impeachment issue hasn't been heard. Hasn't what this administration done to us a crime? Has the fear of reprisal and Big Brother watching, scared us not to speak up. If this administration really was "patriotic" they would have put a well planned energy policy in place. When I marched in a rally in Boston in September 2002 against the start of a war against Iraq there was a poster of Dick Cheney with black oil around his mouth dripping down his chin and the quote above his head said "Got Oil?"
I always said and thought it was all about the oil.

[Taan]

As we gnash and flail away at high gas prices and the humongous CEO salaries, no one seems interested in the fact that the oil conglomerates are owned by millions of ordinary shareholders who are reaping the benefits of elevated prices. Do you read angry shareholders letters to the editor, hear of disgruntled crowds of shareholders besieging the halls of Congress and oil and gas headquarters or legions selling their shares based on high principles? Assuredly not. The income from rising pump prices is offset by increased share profits. A nice economic round robin. Japan was manufacturing cars getting 40 mpg fifteen years ago. Detroit still can't get 30. Ergo, the Motor City has lost its world standing to Japan.

[PierreLeClerke]

You either know what you speak is Industry propaganda B>S> as you feather your nest, or you are a total moron.
Check the facts on Board and CEO compensation for the top 5 Publicly held Oil co. and then do the research on the rest of the private and nationally owned cartel members.

[calirighty]

It doesn't matter what CEOs make. The fact of the matter is they still answer to a board of directors and shareholders. Instead of complaining about the the price of oil why don't you try INVESTING in oil. The price of oil has quadrupled. Have you bothered thinking about getting an return on the money you spend for gas? Should every business in the country be told how much to pay their executives or how much to charge for their products? You have obviously never owned a business. If you don't like the prices then stop buying the gas.

[arries]

Thanks for this article. Many of us know about this issue with the Bush's and the Cheney's, but the bigger news agency's don't badger this issue.