www.philly.com Posted on Mon, Mar. 17, 2003 By Tom Avril Inquirer Staff Writer

Your car's gas tank is thirsty. Your wallet hurts.

Two things to consider:

1. Prices aren't really as high as they seem.
2. A little pocketbook pain, according to some, is not entirely a bad thing.

Not that anyone wants economic hardship, much less a war, but some clean-air advocates hope the recent rapid increase in gasoline prices will cause motorists to think about alternatives to the almighty automobile.

"It definitely forces people out of their cars," said Ronda R. Urkowitz, program director of Cross County Connection, a South Jersey nonprofit that promotes transportation alternatives. "We hope that people who do try alternatives like carpooling like it, so that once gas prices do come down, they'll keep doing it."

Joseph O. Minott, executive director of the Philadelphia-based Clean Air Council, holds a common view among environmentalists when he says gasoline prices are not high enough.

The price does not reflect the true societal cost of byproducts such as air pollution, Minott said. Yet he wishes the current high prices were happening for a different reason.

"Ideally, they shouldn't be high because oil companies and Middle Eastern countries are making a lot of money off it," Minott said. "I'd rather see them high because they're taxed so highly, and then the government can invest in... alternatives to the car."

The run-up in fuel prices is already being cited by interest groups in Washington in promoting initiatives for energy efficiency.

On Thursday, the nonprofit coalition Alliance to Save Energy applauded the introduction of a bipartisan Senate bill that calls for a wide range of energy-efficiency tax credits.

"With energy costs reaching record levels in recent days, lawmakers are right to get behind energy efficiency that will help consumers and the environment with longer-term benefits for the economy and national security," David M. Nemtzow, alliance president, said.

Energy experts agree that current gasoline prices - said to be higher because of a possible war with Iraq and labor unrest in Venezuela - are not high enough to significantly reduce consumption. Indeed, after accounting for inflation, gas prices are as low as they were in the 1960s.

And even if the current hikes continue, gasoline prices are what economists call "inelastic," meaning that higher prices have little effect on demand, at least in the short term.

That's because people still have to get to work or school, and in many parts of the country there aren't many options besides the car.

Still, Honda dealers credit high gas prices with recent record sales of the company's fuel-efficient "hybrid" cars. And in big cities such as Philadelphia, commuters will readily forsake their cars when pushed. Witness the packed SEPTA trains when the weather is bad.

Urkowitz said her organization had seen an increase recently in inquiries about ride-sharing and mass transit, but could not say whether it had been prompted by higher gas prices or by bad weather.

How high would gas prices have to go before people start taking the train, buying fuel-efficient cars, or living closer to where they work and play?

"What's the pain threshhold?" said Bill Veno, a director of Cambridge Energy Research Associates and coauthor of a 2000 study titled Gasoline and the American People. "Gasoline doesn't cost enough to really have a significant impact on the average person's income."

Veno said a good model is Europe, where gasoline prices are triple what they are here - a difference due mostly to higher taxes.

Greater use of mass-transit and smaller cars have long been the norm on the other side of the Atlantic, though part of the reason for small cars could be the narrow roads in older cities, Veno said.

Here in the United States, said Kert Davies, the U.S. research director for Greenpeace, the goal should be to "change behavior without nuking the economy."

Whatever their impact, current high gasoline prices may be short-lived, according to one expert.

George Gaspar, an energy analyst with the Robert W. Baird & Co. financial firm in Milwaukee, predicted that crude oil prices, now at about $37 a barrel, won't go higher than $45. That means average prices at the pump, now about $1.70 nationwide, won't go up more than 20 cents a gallon, he said.

The reasons are that a war is expected to be quick, and that the Bush administration would open the nation's strategic petroleum reserves to keep prices in check, he said. In the meantime, oil companies are building up non-OPEC supplies, Gaspar said.

All of which makes Minott, of the Clean Air Council, lament that prices won't have much of an impact.

"It takes an awfully large price hike for Americans to change their gas-consuming ways," Minott said. "Culturally, we love our cars."

Contact staff writer Tom Avril at 215-854-2430 or tavril@phillynews.com.

www.bsudailynews.com March 17, 2003      by Teresa Auch, Chief Reporter

Members of the Ball State and Muncie communities joined the world in a candlelight vigil Sunday night to oppose the looming war with Iraq.

The event was organized by Win Without War. Peace supporters

The peace event started in New Zealand and 6,761 groups in 140 countries joined in throughout the day.

About 100 peace advocates gathered around Beneficence for 30 minutes of silence. People were then invited to speak.

Gina Wertz, a senior at the Indiana Academy, said she decided to organize a vigil in Muncie after reading the Web site MoveOn.org last Wednesday and saw there were none scheduled for Muncie yet.

According to moveon.org/vigil, the event started in New Zealand and 6,761 groups in 140 countries joined in throughout the day.

About 100 peace supporters gathered around the Beneficence statue for 30 minutes of silence. People were then invited to speak about peace and what they could individually do to promote it.

"I will try to become a voice for peace and learn more about it," Muncie resident Lucinda Rarick said.

Many people spoke on the need for more education about a need for war. However, there was some disagreement over the role that oil has played in the decision for war.

Stacy Stinson, an architecture student, said he believed the possible war was "dirty" because of the ties oil has had.

Sophomore Cole Smith said he disagreed with Stinson after talking with history professor Kevin Smith who said if the United States wanted control of oil, it would be better to focus on Venezuela.

Wertz said she feels oil is the real reason for a possible war.

"I feel the war is oil motivated; it's the biggest industry in the world," Wertz said. "Most of Bush's campaign contributors are in the oil industry, and everything points toward them."

Wertz said she has written to congressmen to impeach President Bush.

"He doesn't listen to the American people, and he's not honest because I feel his motivation comes from oil."

Many of the participants said they didn't believe there was enough evidence in support of war.

"It doesn't seem like there has been enough time and evidence, and it seems a lot of the reason for war is connected with Sept. 11," Indiana Academy alumna Susie Wilson said.

Michelle Lawrence, senior at the academy, said she didn't see why it mattered even if Iraq did have all these weapons when it hasn't mattered for the past 10 years.

Many participants, while against war, were not sure what other actions should be taken.

"I'm not sure what a good solution would be, but I know war is a bad one," Wertz said.

Another vigil is planned for 7 p.m. next Sunday.

Vigil promotes peace, education on world situation Post your feedback on this topic here No feedback has been posted yet. Please post yours! (Feedback requires a Javascript-compatible browser)

english.pravda.ru 10:25 2003-03-17

The rejection to the compromise offer made by the South American country revealed USA intentions not to discuss further the Iraqi issue at the UN Security Council and puts Latin America before a strategic decision towards the incoming geopolitical scenario

Trying to keep the balance between its both main trading partners, EU and USA, the Government of Ricardo Lagos made the last effort to break the deadlock at the United Nations. The quick US rejection shows that the only timetable handled by them is the military one and something else.

At first sight, Chile's proposal looked fueled by Bush administration, as considered the use of force in case of no compliance. However, the quick rejection from both parties in dispute proved that there is no longer room for diplomatic negotiations, as the Pentagon decided to go ahead with White House's plans for Middle East.

The frustrated Chilean intentions to mediate between USA and the core of the European Union, France and Germany supported by Russia, proves that Latin America will have to take a strategic decision in the near future. As the region will be an area of geopolitical dispute between both third millenium superpowers, these countries either have to take part in the confrontation or keep an independent policy.

As Latin America is still too weak to face its future by its own, it will probably take the first line. Then, a rupture inside Latin America could become reality. Historically, what is now the Mercosur block developed stronger cultural, political and economical ties with Europe. Brazilians, Argentineans, Uruguayans and Paraguayan, always had their mirrors in the old continent. Something similar happens with Chile, Bolivia and Peru, but their last administrations have fueled a direct alignment to Washington.

The Andean and Central American countries are of most strategic interest for USA and, therefore, they will surely fall under its influence. A special case is Venezuela, as this historically US-linked country faces today a new process headed by President Chavez that could break this pattern. By the way, Mexico has to resolve its internal contradiction: how to be a US economically dependent country and be culturally and politically influenced by Europe at the same time.

No question, this dispute will be resolved within the next five years, as by that time each Latin American country will have to state a position on the US proposed Free Trade Area of the Americas. Not in vain, the strongest opposition to what has been called the "US imperial project for Latin America" comes from Brazil and Argentina.

The European Union is also playing its game on this. EU universities plan to deliver over 4,000 scholarships to Latin America during the next year, to form a generation of European-minded leaders in the region. "This is of most important strategic interest for Europe", said the Hungarian Professor Ferenc Fischer to this correspondent, during his last year visit to Buenos Aires. The Director of the Modern History department of the University of Pecs believes that this is part of the incoming geopolitical disputes between USA and the EU.

No doubt Middle East is the first step towards the new redefinition of the world's geopolitical scenario. Latin America will be the next one and has to be prepared, not for conventional war, but for cultural and political confrontation.

Hernan Etchaleco PRAVDA.Ru Argentina

www.idg.com.sg By Juan Carlos Perez IDG News Service, Latin America Bureau 17-03-2003

MIAMI - Digital subscriber line (DSL) will continue growing by leaps and bounds both in terms of revenue and accounts in Latin America in the coming years, as consumers and businesses adopt this broadband technology to improve their Internet use, according to a new Pyramid Research Inc. report.

Consumers who are heavy Internet users and medium-size businesses are the main adopters in Latin America of DSL, a broadband technology that allows subscribers to use a regular telephone line to simultaneously access the Internet at high speeds and make and receive voice calls.

Because DSL connections to the Internet are faster and more stable than dial-up connections, DSL subscribers enjoy a better Internet experience than their dial-up counterparts, especially with regard to more sophisticated content and applications, such as multimedia.

DSL growth in Latin America should spur a wider availability of multimedia content and applications, such as gaming, from regional and local providers, although Pyramid doesn't expect this development to be massive. Video represents a good opportunity for local providers of broadband content, but it remains scarce, according to the report, titled "Latin America: DSL's Swift Uptake."

In the long term, broadband content and applications will be fundamental for the growth of DSL in the region, but not in the short term, since at present the speed and stability of DSL connections are enough to attract subscribers, according to Pyramid.

Latin America had about 900,000 DSL accounts at the end of 2002, a figure expected to rise to about 6 million by the end of 2007, said report author and Pyramid analyst Gabriela Baez on Thursday.

Excluding connection fees, revenue from DSL services in Latin America amounted to about $300 million in 2002, or 13 percent of the region's total Internet service revenue, which includes dial-up, broadband and leased line services, she said. Pyramid expects DSL services revenue in 2007 to reach around $2.3 billion, or 40 percent of the estimated total Internet service revenue in the region for that year, she said.

Currently, DSL is the broadband technology with the most accounts in Latin America, and ranks second in revenue, behind leased lines with dedicated Internet connections, Baez said. However, Pyramid expects DSL to move into the top spot in revenue by early 2004, Baez added.

DSL's growth in Latin America is being fueled by investments in its roll out from incumbent carriers, which benefit from the technology because DSL accounts generate more revenue per subscriber than dial-up accounts, according to the report. Incumbent carriers have also found in DSL a vehicle to counterpunch cable companies, which provide a competing broadband option using their cable infrastructure.

On the downside, DSL does compete against the business of leased lines with dedicated Internet service that the incumbents also market, Baez said. DSL also eats into the incumbents' local service revenue because it removes the local per-minute fees that dial-up Internet calls generate, she added.

As usual, Brazil has the largest number of DSL accounts (70 percent). About 92 percent of DSL accounts are concentrated in Brazil, Chile, México and Venezuela.

For this study, Pyramid took into account the Internet service markets of Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay and Venezuela.

seattletimes.nwsource.com Monday, March 17, 2003 - 11:01 a.m. Pacific By Luke Timmerman Seattle Times business reporter MIKE SIEGEL / THE SEATTLE TIMES

Truckers, like these heading east along Interstate 90, are commonly paying $200 a day to fill their tanks with diesel. Many are trying to raise delivery charges to help cover the costs, and that eventually could mean higher prices for consumer goods.

Imagine paying $200 a day to fill your tank instead of $150.

That's what truckers are facing as the price of diesel, the fuel that transports most goods onto American store shelves and heats many homes, has reached record highs. Diesel climbed to $2.05 a gallon yesterday in Washington, according to the American Automobile Association.

Those who operate trucks — from large semis to small delivery trucks — are feeling the pressure. If it lasts long, economists say consumers will start taking a hit, too.

James Wallace, president of Gee Cee's Truck Stop along Interstate 5 in Southwest Washington, one of the state's largest diesel retailers, said truckers commonly pay $200 for daily fill-ups that cost $150 a month ago. Many are trying to raise their delivery charges to cover the costs, but some customers refuse to pay more, so truckers are forced to absorb the costs, he said.

Some truckers are postponing maintenance, such as oil changes and tire rotations, to stay in business, he said. If fuel prices stay high for months, he said some will go bankrupt.

"I don't empathize with the gas-guzzling public as much as the truckers," Wallace said. "With gas, most people waste a lot just by going to the market to get a gallon of milk. But truckers don't have a choice. Fuel costs are a fact of life for them."

It's also part of life for Metro, King County's bus service that operates a fleet of 1,300 vehicles. The buses consume ultra-low-sulfur diesel, which last week cost $1.41 per gallon, up from $1.08 in early February. It matters to Metro's budget: The annual impact of each penny increase works out to $100,000 a year, said Metro spokeswoman Linda Thielke. If prices stay high, it could cost the county millions.

Diesel prices are propelled by the same forces moving the price of gas. Crude-oil prices have reached the highest levels since the 1991 Persian Gulf War, based on uncertainty about a new war in Iraq and lingering supply shortages from the general strike in Venezuela. On top of that, the cold winter in the East and Midwest has drained supplies of home heating oil, which closely resembles motor diesel.

Refiners are postponing crude-oil purchases in hopes that prices will fall, which in turn depletes inventories of refined fuels like gas and diesel, said Severin Borenstein, director of the University of California Energy Institute.

The American Trucking Association has asked the Bush administration to release oil from the nation's Strategic Petroleum Reserve to bring down prices, so far without success.

Bob Costello, the association's chief economist, said for every 10-cent-per-gallon increase in diesel, there are about 1,000 bankruptcies in fleets with five trucks or more. If enough go out of business that the survivors gain pricing power, they could impose surcharges on, say, grocery chains, who could then pass it along to consumers by raising the price of milk.

"If this price increase lasts for months, we'll see this show up in our prices at the store," Costello said.

Phil Verleger, an energy economist affiliated with the Council on Foreign Relations, said high fuel prices could shave off 3 percent or more from the gross domestic product, leading the country into a recession by the fourth quarter of 2004.

But he doubts that it will get to that point. The federal government tapped the nation's reserves when the ground war began in the first Gulf War, and oil prices fell dramatically within an hour.

Luke Timmerman: 206-515-5644 or ltimmerman@seattletimes.com