In Egypt, Bush says Saudi oil boost not enough

updated 11:09 a.m. ET May 17, 2008

SHARM EL-SHEIK, Egypt - President Bush said Saturday that the Saudis' modest increase in oil production is "something but it doesn't solve our problem" of soaring gas prices.

Taking note of the kingdom's recent decision to raise production by 300,000 barrels a day, the president said the United States must act, too, to ease the gasoline crisis. He mentioned steps such as developing alternate fuels, improving conservation and expanding domestic exploration.

"We've got to do more at home," the president said on a lawn of a resort overlooking the Red Sea. He spoke after a private meeting with Afghanistan President Hamid Karzai.

While in Egypt, Bush will also be meeting with other leaders who are key to U.S. goals in the region: Egyptian President Hosni Mubarak and Palestinian President Mahmoud Abbas. On Sunday, Bush is meeting with Pakistani Prime Minister Yousuf Raza Gilani, Jordan’s King Abdullah II, Palestinian Prime Minister Salam Fayyad and several Iraqi leaders.

Bush said he told Saudi King Abdullah during their talks this week that the king should be concerned that high energy prices are hurting some of Saudi Arabia's biggest oil customers, including the United States.

The kingdom decided May 10 on the production increase to help meet U.S. needs after Venezuela and Mexico cut back on oil deliveries. Oil minister Ali al-Naimi made that announcement Friday.

"One of the interesting things about American politics is, those who are screaming the loudest for increased production from Saudi Arabia are the very same people who are the fighting the fiercest against domestic exploration, against the development of nuclear power and against expanding refining capacity," Bush told reporters.

"So I was pleased they had increased production by 300,000, but I'm also realistic to say to the American people, we've got to do more at home," the president said.

Congress stymies moves
As gas prices keep climbing, Bush is promoting moves that long have been part of his agenda. They include opening a coastal strip of the Arctic National Wildlife Refuge in Alaska to oil exploration and production and making it easier to build new oil refineries and nuclear power plants in the United States.

All those ideas have been stymied in Congress, and critics say Bush's ideas would do nothing to offer short-term relief to families.

Bush said he made his concerns about the oil supply clear to King Abdullah on Friday in Saudi Arabia, telling the king: "You've got to be concerned about the effects of high oil prices on some of the biggest customers in the world. And not only that, of course, high energy prices are going to cause countries like mine to accelerate our move to alternative energy."

He said Saudi Arabia was increasing refining capacity as well as pumping more oil.

"It's not enough. It's something but it doesn't solve our problem," Bush said. "Our problem in America gets solved when we aggressively go for domestic exploration. Our problem in America gets solved if we expand our refining capacity, promote nuclear energy and continue our strategy for the advancement of alternative energies as well as conservation."

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