State's Larson Notes U.S., Saudi Steps to Maintain Stable Oil Market

The United States and Saudi Arabia have shared interests in the stability and reliability of the international oil market, and have taken a number of steps to achieve those market objectives, says Under Secretary of State Alan Larson.

In a speech to a conference hosted by the Council on Foreign Relations, the Petroleum Industry Research Foundation, Inc., and the U.S.-Saudi Arabian Business Council in Washington April 22, Larson pointed out that Saudi Arabia, the world's largest oil producer, has expanded spare oil production capacity and diversified its export routes to both coasts, allowing it to mitigate supply disruptions wherever they may happen, Larson said.

At the same time, the United States is pursuing greater energy efficiency and conservation to enhance U.S. energy security, and is making major investments in strategic oil stocks and filling the Strategic Petroleum Reserve to capacity, Larson said.

Larson, Under Secretary for Economic, Business and Agricultural Affairs, said oil-producing and oil-consuming nations know that using oil as a political weapon is unacceptable and does not work. He said the United States appreciates recent statements from the Organization of Petroleum Exporting Countries (OPEC) that reject the use of oil as a political weapon.

Larson said the United States supports Saudi Crown Prince Abdullah's call for deepened producer-consumer understanding, in keeping with the U.S. national energy policy of seeking deeper dialogue with major oil producers on information related to oil markets.

The under secretary said the United States welcomes foreign investment in its energy sector and supports Saudi Arabia's moves to open its economy to more foreign investment.

He added that the United States strongly supports and stands ready to assist Saudi Arabia in its bid to join the World Trade Organization.

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