Saudi oil minister and US energy secretary comment on oil prices

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Washington DC - 2 May 2006 1. Wide shot of energy conference. 2. SOUNDBITE: (English) Samuel Bodman, US Energy Secretary: "Individuals, individual families in this country where they are dealing with gasoline prices in particular that are much higher than anything we''ve seen historically; they haven''t budgeted for it and it''s a real problem, and that is the reason that we are all as concerned as we are about it. The idea of who can afford what, there are many families today in this country that can''t afford today''s prices, let alone prices that might be created in the future." 3. Cut away of reporters writing. 4. Wide of al-Naimi at podium 5. SOUNDBITE: (English) Ali al-Naimi, Saudi Arabia''s oil minister "Political tensions, tight petroleum product markets and talk of the world running out of oil are fostering an environment of fear and uncertainty oil markets and among consumers. The consequences are clear to us all, prices for crude oil, heating oil and gasoline have risen to record levels. This is not a situation in which anyone can take comfort." FILE New York - Date and Location Unknown 6. Wide of NY Mercantile exchange New York - 2 May 2006 7. SOUNDBITE: (English) Ira Epstein, Futures Trader, New York Mercantile exchange: "Well Bolivia said they want to have it nationalised, their oil industry, they want to have it on their own and they don''t want anyone, they want to keep it privatised. They don''t want anyone to come in and take any share of it. So as they close up that is one more reason it''s closing up. Nigeria, there is still political unrest, they have one of the best crude oil places in the world, and there is still unrest there. So as I said, China continues to grow and they are the number two consumer of oil and in five years they will be self-sufficient. There are just so many more, headline after headline. You still have the Iranian issue that doesn''t look like it is going to be resolved anytime soon, number two producer in OPEC. So, there are just so many more bullish items in the market." FILE New York - Date and Location Unknown 8. Shot of traders at NY Mercantile exchange STORYLINE: Oil prices rose above 74 US dollars a barrel Tuesday amid fear that international pressure on Iran to modify its nuclear program may lead to supply cuts from the key exporter. Samuel Bodman, the US Energy Secretary said the there was a cause for concern because gas prices were historically high at a time when individuals had not budgeted for it. "The idea of who can afford what, there are many families today in this country that can''t afford today''s prices, let alone prices that might be created in the future", he said. Bodman was joined in a panel discussion by Saudi Arabia''s oil minister Ali al-Naimi, who said that currently high crude oil prices are of no long-term benefit to either producers or consumers and contribute to market instability. "Political tensions, tight petroleum product markets and talk of the world running out of oil are fostering an environment of fear and uncertainty oil markets and among consumers," said al-Naimi. Al Nami also said Saudi Arabia is committed to working with the United States to keep oil markets stable, including plans to increase production to 12.5 (m) million barrels a day by 2009. But he said that producing adequate supplies must involve other suppliers and conservation. He pledged in the long run that Saudi Arabia will be able to substantially expand production using new technologies and he discounted that global oil supplies have, or will soon peak. Ira Epstein, a Futures Trader at the New York Mercantile exchange noted that many oil producing countries were unstable. Bodman and al-Naimi were to meet privately later in the day. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/2c74c16439af6efb974af515ec5bbcab Find out more about AP Archive: http://www.aparchive.com/HowWeWork