www.canada.com SYLVAIN LAROCQUE Canadian Press Tuesday, February 18, 2003

OTTAWA (CP) - A Commons committee is demanding to hear testimony from top oil executives, explaining the recent surge in oil prices.

The Commons Industry committee unanimously adopted a Bloc Quebecois motion on Monday that calls on the executives to appear before the committee in the next few weeks. Independent gas-station operators and oil-industry analysts will also be asked to make submissions on Parliament Hill. Bloc industry critic and committee member Paul Crete said the motion will "send a message" to oil companies as gasoline prices jump and heating costs rise during a bitter winter.

"This is not a time when we can spend too much on fuel," said Crete.

"Hopefully (the committee appearance) will give customers some hope."

Gas pump prices in Canada averaged about 80 cents a litre last week - topping nearly 90 cents in the Maritimes and causing Canadians to gripe about the cost to fill up their gas tanks.

The price hike has prompted MPs from all parties to accuse oil companies of collusion and price-gouging.

The government hinted that some relief might come in Tuesday's budget, but Industry Minister Allan Rock has also said the government may adopt a wait-and-see approach.

Industry committee members refused a Bloc request to make reference, in the motion, to "collusion between the oil companies."

"It would be dishonest to accuse them and then proceed to demand that they come and explain themselves," said Liberal MP and committee member Serge Marcil.

But Marcil expressed his own doubts as to whether the hike in gas prices could be solely attributed to the ebb and flow of the market.

"The companies will have to tell us why they decided, all of a sudden, to raise the price of a litre so high and so quickly."

Crete said he was confident the committee motion would lead to an in-depth examination of business practices in the oil industry.

The committee will present a report to Parliament following its hearings, and Crete said he hopes the committee will recommend that the Competition Bureau launch an investigation.

Gas prices have risen sharply in Canada in recent months. The price jumps are attributed to a number of factors, including the threat of war in Iraq and labour unrest in Venezuela that has restricted shipments. Venezuela is the world's fifth-largest producer.

world.scmp.com Tuesday, February 18, 2003 VENEZUELA REUTERS in Caracas Updated at 11.15am:

Venezuela's government and opposition agreed overnight (HK time) to an anti-violence pact to lower tensions and curb harsh rhetoric that often inflames their feud over the rule of President Hugo Chavez.

The eight-point resolution was the first firm development from three months of frustrating talks guided by the Organisation of American States and backed more recently by a six-nation group led by the US

But a source close to the negotiations said the document carried no sanctions and the feuding sides appeared no closer to a deal on elections to end their political conflict in the world's No. 5 oil exporter.

The agreement includes references to freedom of expression, the media's role in promoting peace, condemns violence and also urges a toning down of aggressive language, the source said.

OAS Secretary General Cesar Gaviria, who has guided the talks, said the government and opposition would sign the resolution later on Tuesday.

''We have finished the round of negotiation and dialogue to complete a declaration against violence,'' General Gaviria said.

At least seven people have died in clashes or violence during rallies and marches since December when the opposition started a two-month strike that failed to oust a president who they accuse of ruling Venezuela like a dictator.

Mr Chavez, a retired paratrooper whose populist speeches are often laced with aggressive class warfare references, accuses his enemies and private media stations of being ''terrorists'' conspiring to topple him.

But his opponents say the president has inspired his mostly poor followers to acts of violence with his tirades against the ''rich elites'' he says have long robbed the nation of its huge oil wealth.

www.cantonrep.com Tuesday, February 18, 2003 By The Associated Press

Excerpts of recent editorials of statewide and national interest from Ohio newspapers:

The Cincinnati Post, Feb. 15:

Americans are peeved at France: for its obstinacy on Iraq; for the patronizing incoherence of its foreign minister; for its double-crossing of NATO ally Turkey; for simply being France.

House Speaker Dennis Hastert is considering striking back by slapping trade restrictions on imports of French wine and bottled water. As satisfying as it might be to annoy our oldest ally, the speaker should drop the idea. It’s petty, and it won’t do any good.

So how should Congress deal with the French? Ignore them. We’re bigger people than these petty reprisals, and if the French think they’re getting to us, they’ll keep it up because France’s claim to great power status lies largely in its nuisance value.

————

The Marion Star, Feb. 16:

We suspect residents wonder what a gallon of gasoline will cost if and when the United States goes to war with Iraq.

After all, it jumped to more than $1.70 a gallon at stations this week, and we are in the dead of a cold winter where demand is far from peak.

The experts tell us talk of war, terrorism, unrest in Venezuela, an unusually low supply of fuel and other complicated factors have pushed the price of oil on the world market.

These explanations have merit to a point, but we also note that energy giant BP posted an amazing 49 percent growth in profits for the final quarter of 2002. High oil prices were cited as one reason for BP’s strong financial performance, which actually reversed a negative trend.

Although many residents get frustrated with typical mid-week price fluctuations in our free-market economy, the recent trends warrant real concern.

The American Automobile Association has expressed concern about the recent gasoline hikes. While the group acknowledges the oil issues cited by the major gas suppliers, it added that “nothing fully justifies the dramatic increase experienced across the United States in the last month.”

The AAA spokesperson didn’t come right out and use the phrase “price gouging,” but the message was clear.

Our government should keep a close eye on the oil industry to make sure it does not exploit world tensions to boost bottom lines. Every penny or dime they charge takes money from people who might spend it elsewhere and help stimulate the economy.

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Warren Tribune Chronicle, Feb. 13:

Gov. Bob Taft has opened the door — just a bit — to the idea of supporting a temporary sales tax to balance Ohio’s budget. But the one-penny sales tax hike would have to be in place by April 1, sooner than House Republicans believe is possible, to balance the budget by June 1.

House Speaker Larry Householder said Taft’s sales tax proposal came too late to be included in the bill approved late Tuesday by the House Finance Committee.

Should Ohio’s lawmakers approve a 1 percent increase by April 1, the state could raise $195 million by the end of the fiscal year on June 30, said Tom Zaino, the state tax commissioner.

Accelerated tax collections also can raise an additional $288 million, but Taft believes any further cuts in state agencies are not acceptable.

But there does appear to be a consensus growing in Columbus about how to handle the state’s deficit although it has not yet jelled. We hope the lawmakers will find a way to do so without any more tax increases — even temporary ones.

Should lawmakers decide to agree to temporary increases, they will have to spell out a date when temporary increases will be removed. Unless that is done, temporary tends to become permanent.

www.ohio.com Posted on Tue, Feb. 18, 2003 Duke gets subpoena for audit documents

Duke Energy Corp., the No. 2 U.S. utility owner, has been subpoenaed by a federal grand jury for documents related to an audit that led to a $25 million settlement with state regulators for misstating profit.

Duke received the subpoena Friday from a Western District of North Carolina grand jury and will cooperate with the inquiry, the company said. The company, which denied intentional wrongdoing after the audit, agreed last year to credit consumer bills in North Carolina and South Carolina.

An auditor retained by the states said the company misstated $123.7 million in profits between January 1998 and July 2001, allowing Duke to avoid lowering rates.

Tankers will return for Venezuelan oil

Oil output could reach 2.8 million barrels a day within a month, when restrictions on sending tankers to Venezuelan ports are lifted, the head of Venezuela's state-run oil company said Monday.

Foreign shippers were warned against loading in Venezuelan ports during a two-month strike, which ended Feb. 3 in all sectors except the oil industry.

Some major companies have decided to return to Venezuela. ExxonMobil Corp. plans to resume loading this week.

Mall giants to merge in $4.25 billion deal

Simon Property Group Inc., the world's largest mall owner, said holders of 85 percent of the common stock in rival mall owner Taubman Centers Inc. agreed to its $4.25 billion offer.

A total of about 44.1 million of 52.2 million Taubman Centers shares were tendered as of Friday, said Dan Gagnier, a spokesman for Simon Property, which is joined in its bid by Australia's Westfield America Inc. Taubman Centers' board has recommended investors reject the $20-a-share offer, and Simon Property had threatened to abandon its bid if at least two-thirds of the shares weren't tendered.

Executive appointed at Myers Industries

John C. Orr has been appointed chief operating officer of Myers Industries Inc.

Orr, 52, will be in charge of Myers' worldwide operations, reporting to Stephen E. Myers, the president and chief executive officer of the Akron-based company.

Orr previously was the general manager of Buckhorn Inc., a subsidiary of Myers.

Myers Industries is an international manufacturer of polymer products for industrial, agricultural, automotive, commercial and consumer markets.

Johnny Unser to aid Cooper Tire racing

Cooper Tire & Rubber Co. said Monday it has engaged Johnny Unser as a technical consultant for its Ultra-High Performance and Racing tire product lines.

Unser, son of racing veteran Jerry Unser and nephew of Al and Bobby Unser, joined the IndyCar circuit in 1993.

Overseas markets rise after U.S. rally

Stocks rose overseas Monday with investors feeling more confident in their buying after Friday's big rally on Wall Street. Worldwide anti-war protests over the weekend also soothed investors worried about prospects of war in Iraq.

Analysts said investors were encouraged after stocks in the United States claimed their first winning week in five weeks, having been persistently pummeled by war fears.

U.S. financial markets were closed Monday for the Presidents Day holiday and will reopen today.

Big N' Tasty to cost more at McDonald's

McDonald's Corp., the world's largest hamburger chain, will drop the Big N' Tasty sandwich from its Dollar Menu, easing price cuts that hurt profit and prompted discounts by such rivals as Burger King.

U.S. franchisees voted Friday to replace the lettuce-and-tomato burger in the national advertising for the Dollar Menu with a double cheeseburger, said McDonald's spokesman William Whitman. Restaurants can now begin selling the Big N' Tasty at a higher price, though the ads won't air until this summer.

www.forbes.com Reuters, 02.18.03, 4:10 AM ET

OSLO, Feb 18 (Reuters) - Norwegian oil and gas firm Statoil <STL.OL> said on Tuesday it had written down the value of its partly owned LL 652 oilfield in Venezuela by 600 million Norwegian crowns ($85.47 million) after tax.

It had already taken a 2.0 billion crown writedown on the same field in the fourth quarter of 2001 after disappointing results of water and gas injection.

Statoil has a 27 percent stake in the LL 652 oilfield, which is operated by ChevronTexaco (nyse: CVX - news - people).