On Sunday, June 22, King Abdullah of Saudi Arabia confirmed that the daily oil production in his country will be raised from 9 million to 9.7 million barrels in an effort to counter the continued steep increase of international oil prices.

The new level should be reached early in July and represents the highest rise in production for the oil rich nation since 1981. The move garnered praise from the White House with Deputy Press Secretary Tony Fratto saying, "Any increase in production in today's oil market is welcome. It is important that we also take steps to increase domestic production and our refining capacity."

The reference to domestic production reflects President George W. Bush's desire to see the ban on offshore drilling lifted to boost domestic production of oil and to lessen the United States' dependence on foreign sources. Speaking in the Rose Garden at the White House on Wednesday, June 18, Bush said, "In the short run, the American economy will continue to rely largely on oil, and that means we need to increase supply here at home."

By the end of next year and as a result of new investment in oil projects, Saudi Arabia will have a 12.5 million barrel a day capacity. King Abdullah, in remarks delivered at the end of an energy summit in Jeddah, cited multiple factors for the high cost of oil including speculation and an increase in taxes in nations with high oil consumption.

He called on OPEC to set aside $1 billion to fund various strategies to end the growing oil crisis with as much as $500 million of that directed toward developing nations to assist them with gaining access to the energy they require.