Saturday, May 17, 2008

Boots & Wallets Drive Governmental Leader Decision Making


American President George W. Bush relies on generals and their "boots on the ground" to make strategic military decisions. To his surprise, George encountered a similar response from Saudi monarchs. Bush pleaded for the Saudis to raise oil production to stem soaring gasoline prices. They made clear that they saw no reason to increase oil production until their customers demanded it, until they heard it from "wallets on the ground".

According to statistics, Saudi Arabia exports 9.2 million barrels per day, with a capacity of 11 million barrels. In 2006 the Saudis produced 10.6 million barrels per day. Production is down, as 16% of their capacity sits idle.

The United States gets only 14% of its daily oil addiction from Saudi Arabia. The largest providers of oil are America's neighbors, Canada and Mexico. In the same range as Saudi Arabia are Venezuela, Nigeria, and Angola.

But King Abdullah's customers aren't demanding a price reduction. If he's as insulated as President Bush, the monarch has no clue as to reality. In the rare event Saudi security services stumble across this post, here's a comment from one wallet on the ground. "Ouch! You're prices hurt and are driving me crazy." Pass it up the chain of command.

But despite their intransigence, guess what the Saudis get from this administration? In addition to $2o billion in high tech arms sales, Bush showed up with an agreement for the U.S. to assist the kingdom in developing civilian nuclear power. Another agreement involves U.S. promises to help protect any Saudi nuclear infrastructure with training, the exchange of experts and other support services as needed

Before his trip to celebrate Israel's 60th Anniversary, President Bush seemed resigned to high oil prices. He told CBS Radio that the "demand for oil is so high relative to supply these days that there's just not a lot of excess capacity." What? Saudi Arabia has 1.8 billion barrels a day offline, while Nigeria has over 1 million idled due to civil strife.

Bush lied yet again, but at least he behaved during his visit. Haaretz reported Saudi Foreign Minister Saud al-Faisal said the discussion with Bush about oil was friendly. "He didn't punch any tables or shout at anybody," the minister said. "I think he was satisfied."

That stands in stark contrast to George W.'s talk at Israel's Knesset. He symbolically banged his genuine Ostrich skin FootJoy golf shoe on the podium while railing against Democratic Nazi "appeasers." Never mind, Bush's family history of Nazi support, much less his fascist-like integration of business and government. Let's hope those generals and customers on the ground start giving these insular leaders their version of reality. In involves people mad as hell, not wanting to take it anymore.