www.projo.com 01/26/2003

Here we go again.

The cold snap has pushed oil prices to two-year highs, raising heating bills and the cost of doing business.

Prices have spiked because of the huge demand for energy this winter, the possibility of a war with Iraq, which would disrupt the flow of oil from the Mideast, and a strike in Venezuela that has shut down refineries.

If that sounds familiar, it is.

Each time during the last 30 years -- when consumers and companies have complained about rising energy costs -- they have been given the same answer.

We are too dependent on foreign oil.

And these days, we are more reliant than ever.

In the early 1970s, when the Arab oil embargo caused gas shortages, long lines at the pumps and the realization that the United States was vulnerable to the Organization of Petroleum Exporting Countries, U.S. oil imports totaled 35 percent.

Today, imports have soared to 56 percent of the oil used annually in the United States.

Some changes have been made since the last crisis to diversify where we get our oil.

But now, three of this country's prime sources of oil -- Venezuela, West Africa and the Mideast -- are in turmoil.

That turmoil pushed the price of a barrel of oil to $35 last week for the first time in years. Home heating oil is at an average of $1.54 a gallon, up 32 cents a gallon from a year ago, and it is forecast to go higher

To reduce reliance on foreign oil, President Bush has set out a plan to search for new domestic sources.

He is following the path of his predecessors who also failed to push for a comprehensive, national energy policy that would cut consumption and encourage alternative energy while looking for new sources of oil.

Mr. Bush's policy

would tap new sources on land previously off limits. It provides tax incentives for new oil and gas drilling in the United States by opening the Arctic National Wildlife Refuge and more public lands in the Rocky Mountains.

There is little in the president's plan to encourage conservation or alternate energy sources, such as wind, sun or fuel cells.

The Senate last year killed the president's proposal for new drilling after fierce opposition from environmentalists and Democrats. But after Republicans took control of the Congress in the November elections, it has come back to life.

Sen. Pete Domenici, R-N.M., the new chairman of the Senate Energy Committee, said the measure could get to the Senate floor in March or April, perhaps attached to a spending bill.

Domenici said the Senate can't develop an energy policy on its own that includes energy conservation measures until it weighs how much more oil and gas might be produced in the future.

Vice President Dick Cheney, an architect of Mr. Bush's energy policy, said conservation is an admirable act of an individual, but had little relevance to national energy policy. He said the national policy has to concentrate on providing energy, not doing without.

Yet, conservation helped the United States cut its energy use growth rate after the embargoes in the 1970s.

And more recently, Californians eased their energy crunch -- after the failure of the state's deregulation plan -- by markedly reducing the demand for electricity.

Other energy initiatives from Mr. Bush leave a mixed message

While his administration has indicated it wants to push for new fuel-efficiency standards for automobiles, the president's $600-billion tax-cut plan includes incentives for business owners to buy gas-guzzling SUVS.

While Mr. Bush's policy seems less than comprehensive, there are national leaders trying to craft a substantive, centrist approach that balances energy use and environmental concerns.

They have formed a group called the National Commission on Energy to "make progress on the touchy issue of the nation's growing dependence on imported oil without screwing up our economy," said John W. Rowe, commission co-chairman.

Another goal, according to S. David Freeman, author of a Ford Foundation report on energy use, is to "have an energy supply without having to go to war to make it work."

The group includes energy policy planners from the administrations of George H.W. Bush and Bill Clinton and experts who represent industry and environmental advocates.

"There really hasn't been an energy policy in this country for 30 years," said Hal Harvey, an officer for the Hewlett Foundation, which is helping to pay for the commission.

"The cost of the absence of one is staggering."

www.centredaily.com Posted on Sun, Jan. 26, 2003 By Adam Smeltz asmeltz@centredaily.com

CDT/NABIL K. MARK Ryan Coleman pumps gas at the Sheetz store at 101 Valley Vista Drive in Patton Township.

STATE COLLEGE - Going for a ride?

With gas prices nationwide having swelled about 32 percent in 12 months, driving to your destination has become an increasingly costly prospect.

Add Venezuela's weeks-long oil strike plus a possible war in Iraq, and the United States might encounter petroleum prices that creep higher still.

"I won't drive any more than I have to," said Dean Smith, 52, of Spring Mills, pumping gas Saturday at the Uni-Mart in Pleasant Gap.

"I'll just do the bare necessities," he said. "That's it."

A year ago, the average price for a gallon of regular, unleaded gasoline was about $1.14 in Pennsylvania, according to the Oil Price Information Service.

By Saturday, gas stations in and around State College were advertising rates about $1.46 per gallon, roughly two cents below the current statewide average.

"Since I live down in Lock Haven and work in State College, it drains the wallet a bit," said Charles Walizer, 24. He said he spends some $40 on gas each week.

"With my commute every day, it's a rather large concern," Walizer said.

At least part of the price increases, which in Pennsylvania include a 4.4-cent jump since December, are blamed on the Venezuela oil strike. The strike, in its 56th day, has stifled exports from the world's fifth-largest oil exporter.

"(Prices) could be worse," said Bill Beard, 46, of Pleasant Gap. "They're manageable right now."

Likewise, local service-station attendants said gas sales have been stable despite price spikes.

"Our business stays pretty consistent unless there's a big hike in price," said Mike Glantz, who works at the College Heights Exxon in State College. "It's basically the same this time of year as it has been."

Traffic at gas pumps down the road seems similarly strong.

"Since (Penn State) reopened" for classes this month, "we've increased sales," said Richard Trialonas, manager of Snappy's convenience store on North Atherton Street.

"It's been nice," he said. "We miss the kids when they're gone."

Jessica Doherty, 19, of Bellefonte, said "it'd take a lot" to calm her driving habits.

"If the price was above $1.60, I think it might slow me down," Doherty said.

Analysts have said a U.S.-led war in Iraq could push the per-gallon expense closer to that point.

Concerns intensified last week when defense officials said Iraqi leader Saddam Hussein might try to sabotage his country's oil fields if the United States invades. Iraq's oil production is about 3 percent of the worldwide petroleum output.

"I think everybody (worries)," said Dondi Smeltzer, 41, of Pleasant Gap. "Whenever the price goes up, you have a little less to spend."

Beard suggested a lasting solution to the price woes may be to limit dependency on oil overall.

"I think we as a country, in the long term, need to move away from use of gas," he said, "and toward other resources."

Adam Smeltz can be reached at 231-4631. The Associated Press contributed to this report.

news.bbc.co.uk Sunday, 26 January, 2003, 02:26 GMT

Venezuela has been gripped by almost daily street protests

Tens of thousands of Venezuelans have gathered on one of the main roads in the capital, Caracas, to demand the resignation of the country's president, Hugo Chavez.

Chavez has refused to step down

The rally - intended to last 24 hours - was called in protest against a court decision to block a referendum on President Chavez's rule, which opponents say is dictatorial.

Venezuela, the world's fifth largest oil exporter, has been gripped by the eight-week strike, which has caused severe fuel and some food shortages.

President Chavez is refusing to step down, saying his opponents are being manipulated by Venezuela's wealthy elite.

At least six people have been killed in clashes between Mr Chavez's supporters and opponents since the strike began last December.

Devastating strike

The protesters have accused Mr Chavez of behaving like a dictator and mismanaging the economy and have called on him to resign or call early elections.

The strike has harmed oil output

They flooded a four-kilometre stretch (2.5 miles) of the major highway, chanting "Until he goes!" and waving the national colours of the Venezuelan flag.

Many took tents and sleeping bags to stay overnight, while others carried folding chairs, portable television sets and radios.

They are protesting against last week's decision by the Supreme Court to postpone a referendum on Mr Chavez's rule scheduled on 2 February - six months before a binding popular vote is due.

The president's opponents had gathered the required two million signatures to press for the vote.

They strike, which started on 2 December, has almost paralysed Venezuela's oil industry.

But there have been signs that the government has made some headway in breaking the oil stoppage, with latest shipping data showing that oil exports have increased.

'Friendly' pressure

As the political crisis continues, Venezuela is coming under increasing pressure to reach a diplomatic solution.

On Friday, the six-nation Group of Friends agreed in Washington to send a high-level mission to Venezuela next week to try to find a compromise.

US Secretary of State Colin Powell told his colleagues from Brazil, Chile, Mexico, Portugal and Spain that Mr Chavez should either hold early elections or call a referendum on his leadership.

The peace proposals - presented by former US President Jimmy Carter - put forward two alternatives:

• either to let the country vote on a constitutional amendment that would allow early elections
• or to wait until August - half-way through Mr Chavez's mandated office - when the constitution allows for a binding referendum on the president's mandate

Correspondents say as Venezuela is a strategic supplier of fuel to the US, Washington is particularly keen to end the crisis.

But they say the latest demonstration shows that there is little immediate sign of a solution.

www.s-t.com

The movie "Gangs of New York" shows just how fearful the natives get when new groups arrive from foreign shores. In this case, it's the newly arrived Irish who are feared by the English and Dutch, and fear turns into slaughter.

White against white. English Protestant against Irish Catholic. It seems almost simple when you consider the complexity of America today. The new immigrants are of many colors and languages, arriving from exotic lands like Somalia, Guyana and the Sudan.

In Massachusetts, 40 percent of the foreign-born population arrived in the last decade. Last November's vote favoring English immersion over bilingual education is undoubtedly a response to the sudden arrival of so many newcomers.

If the natives are overwhelmed by the changes, this does not mean they are racist. Many cities and towns don't have the means or ways of understanding how to manage this great demographic change, according to Miren Uriarte of UMassBoston. The word racist cuts off the conversation and people's fears go underground, when we need to talk openly and freely.

Two of the most fascinating immigrant stories are taking place in Schenectady, N.Y., with the Guyanese, and in Lewiston, Maine, with the Somalians. While I was in Schenectady last month (my home town), I followed the story of the Guyanese in the local newspaper, where the worries of both sides were thoroughly aired. Schenectady was once known as "the city that lights and hauls the world," but the lights went out when General Electric downsized. The loss of work and young people has been catastrophic for the area. Recently the city began aggressively recruiting new businesses, a winning strategy that called for a new workforce.

The mayor went down to Queens, N.Y., and recruited young Guyanese workers who are black and English-speaking (originally from Guyana, bordering on Venezuela). They came, they saw, they stayed. Today they are buying and fixing up long-neglected properties. With a strong work ethic and strong families, they are bringing the city back to life.

Are there problems? Absolutely. Does everybody like the idea of 2,000 Guyanese suddenly moving in? Of course not. Many natives are fearful of being displaced and resent the Guyanese for getting breaks they feel they didn't get. But there are continuing discussions about the concerns of both groups, and this is healthy.

The immigrant story in Lewiston, Maine, is more difficult. At the invitation of the mayor, a few African Muslim families from Somalia settled in all-white Lewiston. The number eventually grew to 1,100. As weary refugees from a fierce civil war, they must now learn a new language and acquire new work skills. Recently, a white supremacy group from outside the area (true racists) came to Lewiston to urge people to drive the Somalians out. Thankfully, the protest turned against the hate mongers.

These immigrant stories will play themselves out in time, just as those in "The Gangs of New York" did. Meanwhile, the world's refugees are increasing. We must take in our fair share of political refugees as should other well-off nations. But legitimate questions must be asked as well: What are the limits to open space, clean water and other natural resources in the United States? How can we help other countries end these brutal civil wars and improve their own standard of living?

These subjects are all part of the conversation we need to cultivate, not squelch.

Marsha McCabe is a columnist for The Sunday Standard-Times.

www.dailynews.com209541136934,00.html Article Last Updated: Saturday, January 25, 2003 - 10:42:32 PM MST By Associated Press

CARACAS, Venezuela -- At least a hundred thousand Venezuelans -- many equipped with tents, inflatable mattresses and foldout chairs -- parked themselves on a Caracas highway Saturday in what they said would be their longest protest yet against President Hugo Chavez.

Shouting "until he goes!" the protesters blanketed a stretch of nearly three miles, prepared to spend the night. On the advice of organizers, many also brought water, sun hats, portable TVs and radios to help while away the hours.

Police at the scene estimated the crowd at between 200,000 and 300,000 people. Caracas fire chief Rodolfo Briceno said at least 100,000 were present.

"Prepare yourself for the longest protest in history!" screamed TV commercials and newspaper ads in the opposition-run media.

The opposition is trying to recover from a Supreme Court ruling on Wednesday that postponed indefinitely a Feb. 2 referendum that would have asked citizens whether Chavez should resign. Although the referendum wouldn't have been binding, opponents had hoped a negative outcome would persuade Chavez to quit.

Opponents had gathered 2 million signatures to petition for the vote. They backed up their demand by launching a devastating national strike Dec. 2 and staging daily street protests. Six people have been killed during protests since the strike began.

The opposition Democratic Coordinator movement is gathering signatures to demand a constitutional amendment that would pave the way for early elections. The amendment would involve cutting Chavez's six-year term to four.

Former U.S. President Carter proposed a similar plan while attending negotiations between the government and opposition in Caracas last week. His Atlanta-based Carter Center, the Organization of American States and the United Nations are co-sponsoring the talks.

Carter proposed a second plan that would have both sides prepare for a binding referendum on Chavez's rule in August, the midway point of his term.