Sept. 19, 2005, 8:34AM
Cartel is seeking a project partner but doesn't hint at a possible locationCopyright 2005 Houston Chronicle
Kuwait is in talks with the Bush administration to build an oil refinery in the United States, seeking to construct the nation's first new plant in three decades as gasoline and diesel prices surge to records.
The cartel's president, Sheik Ahmed Fahd Al Ahmed Al Sabah, said he made the offer earlier this month and expects a reply next month. He said he's seeking a joint venture partner in the project and White House assistance in gaining the necessary permits.
Sheik Ahmed didn't say how much the refinery might cost or where it may be located. White House spokesman David Almacy couldn't immediately comment on the matter.
OPEC should increase its output ceiling this week, even amid signs of slowing demand, to show the world that it is concerned about near-record oil prices, Sheik Ahmed said Sunday ahead of a key policy meeting.
Sheik Ahmed, who is also Kuwait's oil minister, said the Organization of Petroleum Exporting Countries may even need to act again before the end of the year as U.S. refineries hit by Hurricane Katrina recover and the Northern Hemisphere's winter sets in.
"We think we need to send a message to everybody there will be extra oil in the market — we've accepted the idea — to stabilize the price," Sheik Ahmed said.
OPEC is poised to increase its output ceiling, currently 28 million barrels a day, by 500,000 barrels a day.
Oil Minister Ali Naimi of Saudi Arabia, the OPEC member with the best capacity to increase production, has said he supports a ceiling hike, but that he also did not see demand for more crude. He did not specify the size of the increase.
Sheik Ahmed said that while the market is oversupplied by 1.5 million barrels a day, and there are indications demand for crude is slowing, a further increase of the output ceiling may be needed as the high-demand winter season approaches and capacity knocked out by Katrina is restored.
"I think in November some refineries will come back in the south of the United States, and if the winter is cold, we have to do our best to increase real production," he said.
Mum on quota hike He said OPEC had 1 million barrels a day in extra production, but would not say how much the possible quota increase later this year would be.
OPEC was originally expected to make its output decision today, but that has been delayed until Tuesday to accommodate a celebration of 40 years since it moved its headquarters to Vienna, Austria, as well as ministerial talks on a new long-term strategy.
$60 'a high price' Qatar's Oil Minister Abdullah bin Hamad al-Attiyah said $60 a barrel was a high price for crude and that OPEC was not trying to protect it.
"I believe it's a high price. It's not our intention to protect $60; we're not aiming for that," al-Attiyah said.
Al-Attiyah said the problems with U.S. refineries being off-line since Katrina hit were temporary, but the capacity "will take a few months to get back to full production."
"The problem today is the shortage of products, not crude oil," he said.
There appears to be increasing volumes of crude that the U.S. doesn't need, creating a dilemma for OPEC.
"The oil problem is clearly downstream — insufficient refinery capacity," said Johannes Benigni, president and CEO of PVM Oil Associates of Vienna. "Already OPEC members find it difficult to find a market for their crude oil, they're really struggling to place their barrels."
Because of a surplus of crude and lack of refinery capacity, "we may expect a significant increase in U.S. commercial crude oil inventories even if OPEC does nothing," he said. "Refinery tightness is going to keep prices high."
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The last time Kuwait invested in the USA it proved to be a breach in national security then they were able to obtain secured information regarding the airlines and buildings of 911 as Bush's brother, Marvin, owned the security company of The Twin Trade Towers, United Airlines and American Airlines. So not that Marvin has profitting off Iraq it is looking as though the war is coming to a close with the American people and this 'Hurricane' has served a purpose for Marvin to come home and grow an oil processing plant in cooperation with Kuwait.
What RECORD does Marvin have with Kuwait besides his now defunct security business?
"...But then, making money off wars in the Middle East is nothing new for Marvin. Back in 1993, after the first gulf war, he joined his father (3 months out of office), on a trip to Kuwait. Where, according to the March 16, 2001 Austin Chronicle, "Marvin was representing U.S. defense firms selling electronic fences to the Kuwaiti Defense Ministry."
From 1993 to 2000, Marvin was also a major shareholder in the Kuwait-American Corp, which had holdings in a wide variety of US defense, aviation and industrial security companies.
No doubt about it, W's perpetual war on terror, is very profitable for the Bush Boys...."
Another national security breach that we'll be stuck with post Bush/Cheney and we'll have to guard against for the every city in the nation. I understand Osama will be the Plant Manager responsible for deliveries of gas tankers to most major cities !!
