<a href=www.middle-east-online.com>Middle East online

Royal Institute of International Affairs argues Venezuela's oil more important to America's oil security than Iraq's.

LONDON - The United States did not launch the war in Iraq to control Baghdad's oil supplies, an influential British research institute said on Wednesday, rejecting suggestions that oil was the prime motivation for Washington's drive to topple President Saddam Hussein.

"The present US-led military campaign against Iraq is not a war for Iraq's oil," the Royal Institute of International Affairs (RIIA) said in a study on Iraq's oil.

Analysts at the RIIA said that even with sustained investment over several years, Iraq's total oil production could only ever be raised to six percent of the world's total, three times less than Saudi Arabia's total production potential and half the size of Russia's.

The institute also rejected the idea that ensuring a cheap and secure flow of oil to markets was the prime driver behind the US action, noting that Washington did not intervene to stop strikes earlier in this year in Venezuela, which drastically slowed down Caracas' oil production.

"Arithmetically, Venezuela's oil is more important to America's oil security than Iraq's, taking up a share of 14 percent of imports against Iraq's seven percent," it said.

The authors of the study, Valerie Marcel and John Mitchell, went on to dismiss concerns that the United States will allow its own oil giants to carve up Iraq's oil fields for themselves after the war.

"American companies have voiced their preferences in Washington, but so far, American foreign policy has not done very much for the oil majors.

"US sanctions against Iran and Libya have barred access of American companies to those markets, while European and other countries have had a freer hand to invest in these oil rich countries," it noted.

By contrast, the first Gulf War of 1990-1991 - prompted by Saddam Hussein's invasion of Kuwait - was largely a war about controlling oil supplies, the RIIA said.

"By invading Kuwait, Iraq controlled the production of 5 million barrels of oil a day, doubling its reserves. Iraq's own oil is much less important," the analysts said.

Many opponents of the US-led invasion of Iraq have accused Washington of launching the war in the hope of benefiting from a lucrative new source of oil supplies.

The Mercury News

Venezuela's state oil company said it dismissed about 900 more employees, raising the total to more than 18,000 since an oil strike began four months ago.

Those let go worked in all of Petroleos de Venezuela's units, a spokesman said. The firings occur two weeks after Energy and Mines Minister Rafael Ramirez said that dismissals were slowing. Petroleos de Venezuela had 33,000 employees before the strike began Dec. 2.

Labor unions, business leaders and former oil executives organized the national work stoppage to pressure President Hugo Chavez to step down and hold elections.

Posted on Thu, Apr. 03, 2003 By Gary Richards Mercury News California motorists can expect wild increases in gas prices for years to come -- and the state says it's not because big oil is gouging us.

Motorists in the state are consuming 3 percent more gas every year, and that added demand is outstripping the 1 percent increase that California refineries can realistically be expected to produce annually, said William Keese, chairman of the California Energy Commission.

The state issued a report Wednesday stating that the record run-up in pump prices is caused by market conditions, not manipulation by major oil producers. The report indicated that prices probably will fall below $2 a gallon statewide soon, mainly because crude oil prices continue to ease.

But the long-term prognosis, Keese suggested, is not promising.

California burned 14.2 billion gallons of gas in the first 11 months of 2002, the result of an increase in sales of gas-guzzling sport utility vehicles, longer commutes and a growing population.

Increasing that demand just 3 percent means that roughly an extra 420 million gallons are consumed annually, an increase likely to lead to more wild spikes at the corner gas station.

You're going to need a steady flow of imports, or $2-a-gallon gas is going to be an annual event out there,'' said Mark Mahoney, who tracks fuel prices on the West Coast for Oil Price Information Service. Because you pretty much can forget about building new refineries.''

To offset the state's growing dependence on oil, the Energy Commission is expected to recommend the creation of a gasoline reserve that can be tapped when inventories drop.

Clearly, conserving gasoline is not only important for saving money,'' said Jennifer Mack of the state auto club. It's going to be very important for reducing overall demand in the future. . . . But we also have to learn ways to reduce fuel consumption now.''

The state is considering attempts to reduce the growing consumption by increasing gas taxes and fees and offering rebates and incentives for hybrid cars, which operate partly on electricity. The proposals will be presented to the state Legislature and Gov. Gray Davis in June.

The latest study blames the current spike on several factors, including the doubling of crude oil prices because of uncertainty about war in the Middle East and production interruptions in Nigeria and Venezuela.

However, Keese added, the change from MTBE to ethanol has had little impact on current prices. He said about 80 percent of gas sold in the state is now free of MTBE.

Self-serve unleaded gas was selling for $2.16 a gallon statewide on Wednesday, down 2 cents from the record high of $2.18 set on March 22. San Francisco again had the most expensive gas in California at $2.26 a gallon, while San Jose's average stood at $2.15.

Wholesale prices have dropped about 42 cents a gallon since March 15, but retail prices are falling at a much slower pace -- just a couple of pennies.

But by next Monday they should fall significantly,'' Keese said. We expect prices under $2 in most parts of California by the end of this week. If they are not, we'll be concerned.''

Crude oil fell to $28.50 a barrel on Wednesday, on expectations the war in Iraq would soon end. That's down 28 percent from a 12-year high of $39.99 a barrel in February.

In addition, U.S. crude-oil imports were the highest recorded by the Energy Department since it began compiling weekly figures in 1990.

Contact Gary Richards at grichards@mercurynews.com or (408) 920-5335.

<a href=news.ft.com>Financial times By Nerma Jelacic in London Published: April 3 2003 11:21 | Last Updated: April 3 2003 11:21

Brent crude prices continued their downward correction on Thursday after some surprisingly strong oil stocks data from the US and as coalition forces registered further victories in Iraq.

By 0945 GMT, IPE Brent for May delivery was 23 cents lower at $24.98 per barrel, exending the previous session's fall of more than a dollar per barrel.

The sharp revision in the commodity started on Wednesday as fears of supply disruption receeded after US-led forces moved closer to Baghdad.

The advance continued on Thursday with US forces reported to be within six miles of the outskirts of the capital.

Iraq moved Republican Guard units, President Saddam Hussein's best-equipped and most loyal fighters, to the south of Baghdad to face the thousands of US troops approaching the city.

The fall in crude prices was intensified by the release of the latest stockpile figures from the US on Wednesday.

US crude oil inventories rose by a larger-than-expected 2.5 per cent to 10.36m barrels per day of oil last week as a surge in supply from Saudi Arabia and Venezuela pushed imports to their highest level on record, the Energy Information Administration said.

Gold prices fell to a two-week low on news of US advance in Iraq. Bullion was trading at $325 an ounce down from the previous session's fix of $328.90 an ounce.

Investors pulled out of the traditional safe haven over the past two days returning to the dollar and equities instead. The yellow metal has lost some $11 an ounce since the start of this week.

<a href=www.dailyherald.com>Daily Herald By Kent McDill Daily Herald Sports Writer Posted April 03, 2003

This is the kind of story that has in-law relations written all over it.

You know how it goes: I mistreat you the way you mistreat me.

Last week, the Japan Football Association decided not to send its national team to the United States for a pair of well-advertised and highly touted exhibition games. Safety concerns in light of the U.S. war against Iraq were the reasons given.

But there is no game more complicated than international politics, with the possible exception of in-law relations. That's why it is not surprising to find there might have been another reason Japan didn't make the trip.

The San Diego Tribune reported last week that Japan was retaliating against the United States because Major League Baseball did not send the Seattle Mariners and Oakland A's for a scheduled opening series to the 2003 season.

Security issues were cited as the reason for those games being canceled as well.

Reportedly, officials in Japan decided payback was the proper play, and soccer games scheduled for San Diego and Seattle were altered.

"If you don't think the two incidents are related, you're smoking something," one U.S. soccer official was quoted. "You have to understand the Japanese culture. If Americans didn't think they were safe in Japan, then for sure the Japanese are not going to come to a country that just started a war and feel safe here."

Japan's scheduled game against Uruguay in San Diego was canceled, while the U.S.-Japan game was turned into a far less attractive U.S.-Venezuela game.

This was to be the first visit ever to the United States by Japan's national team, and a visit to Seattle - with its large Asian population - was expected to be hugely popular.

Organizers of the MLB games in Japan reportedly lost millions of dollars in preparation costs.

In other war-related news, an exhibition game between the national teams of Brazil and Colombia scheduled for April 30 at Giants Stadium in New Jersey could be postponed or canceled because of international tensions.

Stadium plans: While the Chicago Fire continues to look for a hospitable place to build a permanent home, Columbus Crew Stadium is about to get its first facelift.

An extension of an existing relationship with a local bank has reaped more than $3 million in building projects in and around the 4-year-old, 22,555-seat stadium.

Columbus Crew Stadium was the first stadium built in the United States specifically for soccer, and it set off a hunger around the nation for similar structures.

While many other soccer-specific stadiums have been suggested (including the semi-permanent Firehouse that was discussed in Arlington Heights), the second such facility is just now being completed in suburban Los Angeles for the Galaxy.

There are continuing talks about a soccer-specific home for the Dallas Burn, and the New York/New Jersey MetroStars are in late negotiations about a home in Harrison, N.J.

The Burn stadium is near the groundbreaking stage as officials in suburban Frisco, Texas, are set to agree to foot a large portion of the $65 million bill for a complex that will include 16 playing fields, a hotel and other businesses.

While this first wave of stadiums gets ready to unfold, Columbus Crew Stadium is about to get a new party and banquet center; its 30 loge boxes will be enclosed, with two such boxes being converted into more elaborate suites; and auxiliary locker rooms are being added with an eye toward hosting events beyond MLS games.

Crew Stadium has hosted two World Cup qualifiers and the NCAA College Cup, events that could be spread out to other soccer-specific stadiums around the nation.

Punishment for Hristo? There may be repercussions ahead for Hristo Stoitchkov, the former member of the Chicago Fire who delivered one of the most devastating tackles of his career last week.

In a scrimmage between Stoitchkov's D.C. United team and American University, Stoitchkov put a slide tackle on AU freshman Freddy Llerena that left the college player with a compound fracture of his right tibia and fibula.

Reportedly, the injury left some players physically ill, and most certainly left Stoitchkov heartbroken.

The former Fire forward openly cried as medical personnel tended to Llerena. The game was halted after just 10 minutes of play.

"What do you expect when you go in for a challenge like that?'' AU coach Todd West asked. "You don't expect it from a player of that stature and that caliber. I know he is devastated by what he did, but we've got a guy who we hope is walking again."

Major League Soccer reportedly is considering punishment for Stoitchkov. West later referred to Stoitchkov's foul as "criminal."

In a statement released by United, Stoitchkov offered "a thousand apologies.

"I have never done anything like this before in my career,'' he said. "My heart is with the player and his family."

"I'm sure it's going to haunt him for a long, long time, and certainly haunt our boys for a long while,'' United coach Ray Hudson said.

Congrats to Sigi: The Los Angeles Galaxy, the defending MLS champion, has signed coach Sigi Schmid to a new contract for at least the next two seasons.

• Kent McDill's soccer report appears each Thursday in Sports. If you have comments, please e-mail him at kmcdill@dailyherald.com.