JEDDAH, SAUDI ARABIA - At the conclusion of the Jeddah Energy Meeting in Saudi Arabia, U.S. Secretary of Energy Samuel W. Bodman issued the following statement:
"I want to thank King Abdullah and the Saudi Arabian government for hosting a meeting that gave producing and consuming nations a chance to discuss the current state of the global oil market.
Everyday-and around the world-we are seeing the significant negative effects that high oil prices are having on our economies, our industries and, most profoundly, on our citizens. These trying circumstances demand responsible action from both producing and consuming nations. Market fundamentals show us that production has not kept pace with growing demand for oil, resulting in increasing-and volatile-prices. While this problem does not lend itself to quick fixes, I believe there are responsible actions that all nations can and must take to reduce demand and promote the substantial investment in all forms of energy development. While increases in near-term oil production like the one Saudi Arabia offered today are welcome and necessary, fundamentally the market needs to see investments in increased long-term production capability and spare capacity. I am pleased that today we agreed on this point. We also agreed on the importance of improving market functions through better data transparency. Additionally, we recognized the need to promote energy efficiency through the sharing of best practices and the reduction of market distorting mechanisms.
In the United States, we are taking steps to create diverse sources of supply by aggressively developing and deploying cleaner and more sustainable energy sources and alternative fuels. President Bush has also called on our U.S. Congress to allow access to our own significant domestic reserves which are currently off-limits to producers.
My hope is that the outcomes from the Jeddah Energy Meeting will help foster stable markets and reasonable prices, while restoring market confidence."
Andrew Beck, (202) 586-4940