Economist doesn't see much relief in future Published Sunday, March 23, 2003 Last modified at 12:45 a.m. on Sunday, March 23, 2003 By Robert Pore rpore@theindependent.com

With the nation at war and gasoline prices significantly higher than a year ago, an agricultural economist at the University of Nebraska-Lincoln doesn't see much relief from higher fuel costs in the near future.

Among those dealing with the increased fuel prices are the state's farmers and ranchers, many of whom are already reeling from the effects of drought and low commodity prices.

UNL ag economist Roy Frederick said the national average for regular gasoline prices reached a record high of $1.73 per gallon in mid-March. Prices are about 40 percent higher than last year at this time, he said.

Although gas prices have dropped a few cents in the state in the past week, prices in most Nebraska markets remain higher than a month ago and a year ago.

AAA Nebraska's Daily Fuel Gauge Report showed Grand Island prices for regular gas averaging $1.67 per gallon on Friday, compared to $1.65 last month and $1.39 a year ago.

Frederick said many factors have contributed to recent price hikes, including a petroleum workers' strike in Venezuela, the war in Iraq and operating problems at some U.S. refineries.

"More fundamentally, we must acknowledge our ever-growing dependence on foreign oil," he said.

Frederick said the U.S. Energy Information Administration recently estimated this year's domestic demand at just more than 20 million barrels per day. Of this total, less than 6 million barrels are expected to come from domestic production.

"Never before has the gap between usage and production been so wide," he said.

By comparison, Frederick said worldwide petroleum demand this year is estimated at 77 million barrels per day. He said the United States, a country with 4 percent of the world's population, accounts for 26 percent of the worldwide petroleum market.

"Even a 10-percent disruption in supplies probably would cause gasoline and other energy prices to spurt much higher," he said.

Frederick said the Organization of Petroleum Exporting Countries, led by Saudi Arabia, produces about a third of the world's oil.

"OPEC is promising to make up any lost production from Iraq and Kuwait," he said. "And in recent days, Saudi Arabia has ramped up production with that thought in mind."

But for American consumers, ags occur from production to filling a vehicle's gas tank, Frederick said.

"For one thing, it takes at least a month for an oil tanker to make the trek from the Middle East to the U.S. Gulf Coast," he said. "Figure on another month to move imported oil through refineries and distribution systems. This suggests that it will be late May before gasoline shortages begin to ease."

Higher fuel costs are hurting Nebraska farmers and ranchers, who have struggled during recent years with drought and low commodity prices.

This spring, Nebraska corn farmers will invest more than $2 billion in the upfront cost of putting the 2003 corn crop in the ground, according to the Nebraska Corn Board.

Unfortunately, said Don Hutchens, Nebraska Corn Board executive director, fertilizer and fuel costs have skyrocketed at the worst possible time, which may cause more economic hardship for farmers.

He said anhydrous ammonia fertilizer, used on most crops, is produced using natural gas as a feedstock, which has increased by 50 percent since last fall. Hutchens said anhydrous ammonia is not only in short supply but also costs farmers 25 percent to 35 percent more than it did in November 2002.

The other primary input cost for farmers is fuel. Gasoline prices have increased nearly 25 percent, diesel 30 to 35 percent and propane 43 percent from last fall's prices, according to surveys taken by the Nebraska Corn Board.

"Unfortunately, farmers do not have the ability to pass these increased costs on to consumers, and consumers in the U.S. are the cheapest-fed population in the world," Hutchens said.

Frederick said that, if the war in Iraq doesn't go well for the United States, energy costs will be a problem.

"We are increasingly dependent on others, and when we are, we have to expect these spikes to occur from time to time," he said. "If the solution is not petroleum or oil, maybe it is ethanol. But we have to recognize that, when we are that dependent on others, we are going to have some problems."

Oil and gas production By Julie Breaux Odessa American

Despite a scarcity of rationed materials, limited pipeline capacity and a dearth of seasoned workers, Texas and the Permian Basin supplied about 2 million barrels of crude oil a day — about a fourth of total global production — at the height of World War II. Today, even with the spigots wide open, the state and region produce slightly less than 1 million barrels of crude each day. By comparison, Saudi Arabia’s daily production is roughly 9 million barrels. Does that mean, then, that the industry’s efforts here are less significant now than they were in 1944-45? Absolutely not, says Bob Trentham, a geologist and director of energy research at the Center for Energy and Economic Diversification in Midland. “We’re important not because we can increase production in the short-term, because we can’t,” Trentham said. “However, we are a stable, local source of hydrocarbons. We don’t have to depend on shipping overseas, unstable governments, OPEC price wars. We don’t have to depend on any of those things for our oil.” Kirk Edwards, a petroleum engineer and president of MacLondon Royalty Co. of Odessa, has been involved in oil and gas production in West Texas since the 1980s. Edwards said the age of the Permian Basin may be one of its greatest assets, especially in these tense and troubling times. “The great thing about West Texas production is we are a mature province, which means we have a very consistent supply. We’re kind of like the tortoise to the hare. We may be not fast but we keep on keeping on.” In 1944-45, producers put 2.3 million barrels of Permian Basin crude on the market each day, an increase of about 1 million barrels in 1941-42, according to Texas Railroad Commission records. “The only area that contributed more oil to the war effort was the giant East Texas field,” said Roger Olien, the author of numerous books on the history of Texas’ oil and gas industry and University of Texas of the Permian Basin history professor. “Our major problem as far as doing more was limited pipeline capacity out here and a critical shortage of materials, like tubular goods.” Production was also hampered by federal regulations that dictated the distance allowed between wells, Olien said. And WWII siphoned off experienced workers who enlisted in the war, leaving the inexperienced young or the experienced old — the semi-retired or retired — to fill the void, he said. “They made good workers,” Olien said. “But they weren’t nearly as effective as the usual roughnecks and roustabouts.” Since then, the vast Permian Basin reservoir has been steadily declining, from a peak of about 1.3 million barrels of oil per day in 1971-72 to about 800,000 today. Still, this region of Texas is home to the largest collection of producing reservoirs in the Lower 48, Olien said. And even though the industry’s workforce isn’t what it was in the 1940s — the 1998-98 price crash forced thousands of veteran personnel into other fields of work — West Texas is a hub for some of the most innovative thinking regarding all phases of energy production, he said. Olien calls it “shop-floor technology.” “The only thing you an count on in the oil industry is kind of a continuous forward roll of next-step technology,” Olien said. “No giant leaps. But the contractors in the industry and the equipment suppliers, just left to their own devices, will make improvements in what they do, and it makes it a very dynamic industry. The technology is always alive.” Roll all those factors in with the increasing potential for serious disruptions in supply — whether on order of a despot or by virtue of some production, refining or distribution hiccup that sends energy prices soaring — this oil-and-gas producing region of the world matters a great deal right now, says Bill Patterson, ConocoPhillips’ manager of operations in the Permian Basin and New Mexico. “I think the deal is the Permian Basin is a very good, secure source of energy for both oil and gas for the entire United States,” Patterson said. “And it becomes even more significant if there are disruptions internationally.” While production has been dropping steadily since the early ‘70s, there is still a “tremendous amount” of oil left in West Texas, Edwards said. “But it’s harder and more expensive to find.” Even more oil could be tapped through various enhanced recovery methods, including infill drilling, which drains an oilfield faster than it otherwise could be by adding more wells within existing production, Edwards said. Trentham had no estimate of how much more the Permian Basin has to give but said only 20 to 25 percent has been produced since the Santa Rita No. 1 came in on May 29, 1923, proving the region had oil. Trentham said the amount of oil that could be produced depends on the free market. In other words, there might not be much $20 oil left in the ground but plenty of $40 oil. “We’ll never get all of it, but another 10 percent would be a tremendous amount of oil. We’re talking billions of barrels.” Jim Henry thinks the world will need some of those billions of barrels sooner than later. Henry, chairman and chief executive of the independent oil company Henry Petroleum of Midland, said he didn’t doubt the major oil-producing nations can compensate for any short-term supply disruptions related to the Iraqi war and to the petroleum workers strike in Venezuela that cut production to about 1.5 million barrels per day. Iraq was producing about 2.3 million barrels a day, of which 1.3 million was marked for export to the United States. But Iraqi exports ceased in advance of the U.S. invasion, Henry said. Add to that the fact that crude oil inventories are at record lows, and Henry is concerned about a possible 1.5 million-barrel deficit this fall, when demand will begin to rise. If the world’s producing nations aren’t able to make up that deficit by then, Henry foresees trouble. “We’re producing flat out because of the reduction in production in Iraq and Venezuela, and it’ll take a while to get that production up again,” Henry said. Even if Iraq President Saddam Hussein were to destroy all the country’s oil wells, Saudi Arabia could make up for the production loss, Henry said. “But what you’re’ going to see come fall, when we need that extra storage, it’s not going to be there,” Henry said. “Then you’ll see some problems.” And, as is the case in Texas, crude oil production in Saudi Arabia is nearing its peak, he said.

It's a small world after all. By Lou Ann Thomas Special to The Capital-Journal

2002 Jefferson Award winner Kathy Mulinazzi sits in her home in Lawrence. Mulinazzi won the award for her work with Small World, which teaches English as a second language to international women and their families.

LAWRENCE -- Kathy Mulinazzi has a long history of volunteerism. She has served as a Girl Scout leader and volunteer soccer and softball coach. But it is her work as director of Small World in Lawrence that has brought her recent recognition and the most satisfaction.

"Next to my family, this is the most rewarding thing I've ever done," Mulinazzi said. "I feel like I'm speaking for a segment of society that doesn't have a voice."

Mulinazzi has been a volunteer at Small World for 20 years and recently received the 2002 Jefferson Award in the literacy and education category.

Small World is a program designed to ease the transition of women and children moving to the Lawrence area from other countries by offering them education and information. More than 100 international women and their families are being served by the organization. The women come from all over the world, including Egypt, Argentina, Bangladesh, Korea, Nepal, Iraq, Iran, Japan, Turkey, Russia, Qatar and Saudi Arabia.

The program began in 1968 after several University of Kansas women returned from a sabbatical in Venezuela.

"They returned with an understanding of what it was like to be in a different country and not know the language or understand the customs," Mulinazzi said.

These women decided to create a program to extend a hand of friendship to international families living in the area. The First Presbyterian Church provided meeting space, and the program offered classes in cooking, crafts, sewing and rudimentary English. When the church moved to its new location on Clinton Parkway, Small World moved with it and now features several classrooms and an expanded curriculum.

Mulinazzi first volunteered at Small World as an English teacher in 1983. She grew up in a bilingual family -- her mother's family was from Spain and she grew up fluent in both Spanish and English -- and knew the importance of being able to speak and communicate with those from different countries.

"Fifteen years ago when English became the universal language, it became obvious to me we needed to do something more than teach sewing and cooking," Mulinazzi said. "These women needed to learn idiomatic American English, as well as learn more about our customs, holidays and traditions. I felt it was important to make our program more academic in nature."

So Small World began to offer more levels of English -- there are now five -- and to focus on offering practical resources for their students. Eighty percent of the participants in the program are affiliated with the university.

"Many of these women suffer from depression and cultural shock when they come here. They are often wives of men enrolled in the university and feel isolated and alone," Mulinazzi said. "But after they come to Small World and make just one good friend, it makes a world of difference and their depression lifts."

The emphasis may be on teaching and learning, but fun is never far away. Mulinazzi plans regular outings and celebrations for the women and their children. In October they go to a local pumpkin patch, pick out a pumpkin and then return to the classroom to carve it. During their winter celebration, Tom Mulinazzi, Kathy's husband and a professor of civil engineering at KU, dresses up like Santa Claus and everyone gets their picture taken with Santa.

Earlier this month, the Mulinazzis hosted a St. Patrick's Day party at their home.

"I do whatever it takes to get the ladies to enjoy themselves. I want them to feel it's more than a school, that they can come and find a home in our program," Mulinazzi said.

That is what Renu, from Nepal, found. In her Jefferson Award letter of support for Mulinazzi she wrote that "Small World is like a temple for me."

Mulinazzi's voice cracked with emotion as she read the letter.

"That touches me so deeply," she said. "That she found this a sacred space means so much."

Another Small World student, Hiromi Murakami, is scheduled to return to her native Japan on Monday. She said she will miss Mulinazzi and the school, but she believes the friendships and connections she has established there will live on.

Murakami also hopes to start a similar program in Japan.

"Now I have my dream. It is to spread Small World's policy in Japan," she said.

Susan Jones, assistant director of Small World, wrote in her letter of support that Small World might not exist without Mulinazzi's leadership.

"Her selfless work has made a difference in the lives of countless people, by giving them the ability to read, write and communicate, thereby making it possible for them to connect with others," Jones wrote.

Mulinazzi also helps her students connect with services they may need, such as prenatal care and other social and cultural services.

"That's important," Mulinazzi said. "That's not something they will find in a book. We often provide very practical information they won't find anywhere else. We try to meet whatever needs they have."

The university supports the Small World program, often referring people to the program. Joe Potts, Ph.D., director of International Student and Scholar Services, wrote in his letter of support that Small World is a source of education and assistance for international women and children.

"Kathy Mulinazzi's work has a global input in that she fosters an atmosphere that promotes cultural understanding and lasting, influential friendships among many cultures represented in her participants and volunteers and between women of our own community and nation," Potts wrote.

Mori Jahn, of Japan, is one of the original members of the Small World program, and agreed with Potts.

"There are many women around the world who have a better impression of this country because of their experience with Kathy and Small World," she said.

Mulinazzi said she feels good about the 40 to 50 volunteer hours she commits to Small World each week.

"I know it's worthwhile because the people in the program are having fun and learning," she said.

Mulinazzi credits her parents with instilling in her a spirit of volunteerism and the importance of giving back.

"I think my parents left me with a legacy of volunteering. They were very giving people and that's the legacy I'd like to leave my children," she said.

"We enrich our own lives so much when we help others."

Lou Ann Thomas can be reached at (785) 863-2425 or lthomas66066@yahoo.com.

Kathy Mulinazzi • Birthplace: Washington, D.C. • Age: 56 • Education: B.S. in elementary education, University of Maryland • Family: Husband, Tom; three children -- Teresa Kempf, 33; Christi Kruse, 29; and Matthew, 25 • Community involvement: Volunteer teacher at Small World since 1983

Last Modified: 11:35 p.m. - 3/22/2003

Long-legged birds add beauty to island off Venezuelan coast

By RACHEL BECK Associated Press writer March 23, 2003

WASHINGTON SLAGBAAI NATIONAL PARK, Bonaire - It took two hours of driving along the bumpiest road I have ever traveled until they came into view.

The drive through this rugged terrain suddenly became worth it.

A sea of bright-pink flamingos appeared before my eyes, in shades of bubble gum and set against a serene backdrop of blue waters and barren mountains. Gorgeous.

Ask most people who visit Bonaire about its huge flamingo population, and they will likely remind you that this tiny Dutch Caribbean island just off the coast of Venezuela is known for its amazing underwater life.

True, Bonaire is a divers' paradise, but it's often overlooked as a popular destination for flamingo watchers, too.

It should be more obvious. Flamingo Airport is the main transportation hub, and T-shirts and trinkets for sale all over the downtown area bear flamingo designs.

But it takes some driving around the island for the live flamingos, sometimes huddled in groups of hundreds, to really come into view.

That's what got me hooked. I had been to Bonaire a year ago, and noticed the beauty of the flamingos from afar during a quick ride around its southern end.

This trip, I yearned to learn more about these birds.

So I set out one morning with Gijs van Hoorn, an environmental officer on the island who counts the number of flamingos on Bonaire each month to gauge how they are faring.

On average, there are 3,000 to 7,000 flamingos in Bonaire at one time. That fluctuates because they often fly to Venezuela - even for the day - if food on Bonaire becomes scarce.

Bonaire is one of a few places in the world where flamingos actually breed. They like the temperate climate - it always seems to be around 80 degrees - and the lack of predators around to bother them.

There are two spots where the flamingos tend to congregate on the island, which spans 116 square miles. To the south, they flock to the Pekelmeer Sanctuary, where they frolic in the massive, protected salt ponds.

On the northern end, they are found in pockets of desolate Washington Slagbaai National Park. That's where we headed to count the flamingos.

Armed with binoculars, van Hoorn has more than a dozen watch-points set along the 21 miles of unpaved, mountainous trails that run through the national park. At each, he stops his rickety truck and climbs down through trees and brush to get a better view.

The counting begins.

With a naked eye, we couldn't see anything at the first stop but a slight hint of pink in the distance. He counted more than 70 birds with his binoculars.

Moving on, we saw a few here and there. Some were close; most were far away.

The rocky ride was getting harder to take. There wasn't any flat road to drive on.

I was gripping my seat for balance, hoping that would prevent me from being thrust through the windshield.

Then that sea of color appeared as we approached an area called Salina Slagbaai. Dots of pink popped out of the blue waters as we neared.

We stood far enough away that we wouldn't scare them. Flamingos are shy and tend to flee when humans come too near.

Their long necks dipped below the water to grab food. Then suddenly, they extended their lean, long legs, making it appear that they were walking on water.

This is what I had come for.

We counted 117 in that spot alone. But it was time to move on. We had more counting to do.

Hundreds were spotted at Salina Goto, but mostly from afar. At one point, we stood on a mountaintop and looked down. Huge patches of pink blanketed the water.

We counted 619 flamingos that day during our trip around the national park. Others counting on the island's southern end found 4,225 more.

As we drove home along the bumpy road, it didn't seem to matter anymore that I was being tossed all around.

I had been blinded by the pink light.

Intimidation and threats against journalists in Venezuela. The Associated Press

SAN SALVADOR, El Salvador (March 22, 8:06 p.m. AST) - National security is being used as a pretext to clamp down on the media in the United States, the Inter-American Press Association said Saturday. The association's president Rafael Molina said after the Sept. 11 terror attacks "restrictions were imposed on the press and there were official suggestions to the media about what to publish and what not to publish, using national security as a pretext."

Molina said among the most extreme cases was last month's expulsion of an Iraqi journalist from the United States who was dubbed "harmful" to the security of the country. Iraq in return expelled four U.S. journalists from Baghdad.

"It seems both cases were excessive," said Molina, who heads Ahora newspaper in Santo Domingo, Dominican Republic. "Journalists should not be treated as spies, and actions like this are a flagrant violation of the right of all people to transmit and receive information without distinction by nationality."

The association also expressed concern about violence against journalists in war-torn Colombia, where four journalists have been killed, nine kidnapped and 64 have been threatened in the past six months.

Intimidation and threats also are on the rise against journalists in Argentina, Guatemala, Honduras, Venezuela and Haiti, the association said.

The association is expected to wrap up its meeting Monday with a list of recommendations.