Odessa American By Bob Campbell

When it comes to buying oil, Kermit Republican John Bell says the federal government won’t win any “smart shopper” awards.

“The U.S. government has been the dumbest buyer of oil of anybody,” he said. “It’s a panic buyer. The Strategic Petroleum Reserve (SPR) is full of $30 and $40 a barrel oil.”

Bell, 50, is one of 17 candidates in the May 3 open ballot congressional election.

He’s an independent oil producer who led marches on the Capitol in Austin four years ago to protest his industry’s depressed condition.

Bell said the government has rarely taken advantage of low prices to stock its billion-barrel reserves on the Gulf Coast of Texas and Louisiana.

“The SPR needs to be absolutely full,” he said, noting that each reserve currently has only about 700,000 barrels. “When Venezuela shut off, we should have backed out of the market.”

Nicknamed “Give ’em Hell Bell” by Austin media, the candidate’s higher education was “a semester or two” at New Mexico State University in Alamogordo after graduating from Weed High School near Cloudcroft.

But he points to his success in the oil business, lifelong voracious reading and his tenure as president of the Kermit School Board to argue he is more qualified than other candidates.

Bell owns nine oil wells, has investments in others and often works as a drilling workover and completions consultant. He has been involved in farming and ranching since his youth. His father, Dalton, now retired in Artesia, owned two farms and a ranch near Hobbs, Artesia and Cloudcroft that Bell worked on.

After high school, he spent eight summers as a “helitack” foreman, flying by helicopter to fight fires for the U.S. Forest Service. He and his wife, Sylvia, a schoolteacher, have six children. He wears a heart pacemaker.

“My experience and the things I have done more than compensated,” Bell said, addressing his lack of a college education. “I know more about energy and education than any candidate running, and I know agriculture as well as any candidate.”

Referring to one of his rivals, Republican state Rep. Carl Isett of Lubbock, he said. “Carl doesn’t understand public school education because all six of his kids were homeschooled.

“These issues of my campaign — energy, education, water and agriculture — are my life. I’m totally committed and involved in these things.”

Bell took umbrage at candidate Dr. Richard Bartlett’s advocacy of tapping the Capitan Reef Aquifer under Ward and Winkler counties to help solve area water shortages at a Monday night candidates’ forum at UTPB.

“I know where Dr. Bartlett got that,” Bell said, meaning he was first with the idea.

He said Capitan Reef water, already being used at Fort Stockton through reverse osmosis to remove dissolved solids, would have to be processed, but that it’s plentiful enough to justify the expense. “There was a natural lake west of Wink until the Railroad Commission forced them to put the water back in the ground in the 1960s,” Bell said.

Apr 17th 2003 | CARACAS From <a href=www.economist.com>The Economist print edition EPA
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A year after Venezuela's failed coup, its president rules in triumph over a shattered and still-divided country

ON APRIL 13th, the broad Avenida Bolívar in the heart of Venezuela's capital was a sea of flags in the national colours of red, yellow and blue, spattered with the scarlet berets of the political movement led by President Hugo Chávez. Behind the president, on his podium raised high above the crowd, was a vast billboard celebrating the “civilian-military unity” that, in official mythology at least, restored Mr Chávez and his populist “Bolivarian revolution” to power after he was briefly ousted in a coup a year ago.

Twelve months on, the balance of power in Venezuela has shifted dramatically. Mr Chávez celebrated the anniversary with an international “solidarity forum” paid for out of public funds. Those attending included Carlos Lage, Cuba's vice-president.

Venezuela The Organisation of American States explains the referendum under discussion in Venezuela.

In contrast, Mr Chávez's opponents failed even to unite in commemoration of last year's events, in which 19 of their supporters were killed. Some of their rallies were cancelled for lack of support. The opposition is battered and leaderless. It is licking its wounds after the failure in January of its second all-out bid to topple the president, this one through a two-month general strike that strangled the oil industry. The government claims that oil production is now back to normal, despite the sacking of nearly half the state oil company's workforce.

But Mr Chávez is presiding over a country dramatically impoverished by 18 months of bitter political conflict. The strike alone cost Venezuela 7.6% of its GDP, according to the National Assembly's economic advisory office. Many private firms have closed down. Since December, in one household in three a family member has lost his job, according to DatosIR, a market-research firm. Datanalisis, another survey firm, predicts a 30% drop in purchasing power this year, in a country where half the population is barely managing to subsist. Crime is soaring.

The government has imposed exchange controls, and is itself close to broke. When Mr Chávez said last month that Venezuela would have to restructure its foreign debt, finance officials quickly contradicted him. But the government faces a fiscal deficit this year of close to 7% of GDP, according to LatinSource, an economic consultancy. It is likely to press the Central Bank to print money, so inflation (31% during last year) is set to continue rising. Vegetable gardens for the poor

The president brands the opposition as fascist coup-mongers. The opposition, for its part, accuses Mr Chávez of being an elected dictator. It is unclear, however, whom the hard-pressed Venezuelans will blame for their plight. Polls showed a slight increase in support for Mr Chávez during and after the strike. But that may not last. Officials fear that hunger could erode support for Mr Chávez among the poor. Beside the Avenida Bolívar, the government is sponsoring vegetable gardens.

The next test for both sides is likely to be a mid-term referendum on Mr Chávez's presidency. Under the constitution, this could be held from August onwards. Government and opposition negotiators said last week that they had reached a “pre-agreement” to hold such a vote, after talks mediated by the Organisation of American States. But there are many obstacles. The government has not even said whether it will sign the “pre-agreement”. Although the opposition in February gathered the 2.4m signatures needed to call a referendum, it will almost certainly have to repeat the exercise. There is no electoral authority in place. The National Electoral Council's term lapsed a year ago. A new council has yet to be appointed, because of wrangling not just between the two sides but within the opposition.

All this means that the government has many ways in which to stall a referendum. If cornered, Mr Chávez could simply precipitate an election. Since he is far more popular than any single opposition leader, he might win this—unless the opposition were to unite. There are no signs of that yet. The opposition is still shell-shocked after the strike. “Everyone is depressed and dispirited,” admits an opposition source. It lacks a clear strategy as well as a leader. But the campaign for the referendum could quickly galvanise it again.

For now, the heat has gone out of Venezuela's political conflict. But neither side is interested in a lasting accommodation. The threat of violence still lurks. As the Chavistas geared up for their celebration, a bomb damaged the building in which the talks between the government and the opposition were held. Similar bombs went off at the Colombian consulate and the Spanish embassy in February. If Venezuela is indeed enjoying a truce, it is an uneasy one which shows no sign of lasting.
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<a href=www.russiajournal.com>The Russia Journal April 16, 2003 Posted: 18:39 Moscow time (14:39 GMT)  | 18-Apr-2003  | Time to get down to work | 14-Apr-2003

MOSCOW - Russian President Vladimir Putin said Wednesday that the United Nations should play a key role in resolving regional conflicts, economic crises and the problems of international terrorism and extremism.

"The international situation brings to the fore the tasks of ensuring the primacy of international law and the unique role of international security institutions, first and foremost the United Nations," Putin said at a Kremlin ceremony where he accepted credentials from ambassadors from Israel, Venezuela, Guatemala, Cuba, Eritrea, Madagascar and Sri Lanka.

"I am convinced that these difficult challenges can be overcome only through the solidarity of the international community," he said. Putin has strongly opposed the U.S.-led war in Iraq, saying diplomacy and continued U.N. weapons inspections were preferable. Since the war began, he has joined France and Germany in pushing for the U.N. to play a central role in Iraq's postwar reconstruction.

During his comments Wednesday, Putin said Russia and Israel should increase their efforts to forge a lasting peace between Israelis and Palestinians.

"Today, more than ever, we must coordinate our efforts with the international community to begin moving toward a lasting, real peace in the Middle East," Putin said.

Russia is an official co-sponsor of the Middle East peace process, but its diplomatic role has been largely overshadowed by that of the United States.

The Associated Press

<a href=www.newratings.com>newratings.com 04/16/2003 First Albany

NEW YORK, April 16 (New Ratings) — Analysts at First Albany issue a "sell" rating on ChevronTexaco (CVX: NYSE). The analysts mention that ChevronTexaco is expected to surpass the quarterly consensus estimates, boosted by improved margins in Singapore and North West Europe, and by lower-than-expected corporate charges. However, the oil and gas production volumes are expected to fall short of the previous year's levels, given the volumes reduction in Indonesia and the disruptions in Nigeria and Venezuela, add the analysts.

Forbes.com-Reuters, 04.16.03, 10:53 AM ETBy Tim Ahmann

WASHINGTON, April 16 (Reuters) - Inflation in the United States was dormant last month outside a jump in energy costs, while groundbreaking for new homes rebounded with surprising vigor after a big weather-related drop, the government said on Wednesday.

The Consumer Price Index, the most popular gauge of U.S. inflation, rose 0.3 percent last month, the Labor Department said. However, excluding volatile food and energy prices, the CPI was flat -- the tamest reading on so-called core inflation since it was last unchanged in February 1999.

"This is more good news on the inflation front. This is a very, very benign number. It's a sign of price stability," said Richard DeKaser, chief economist at National City Corp. in Cleveland. Economists had expected the CPI to rise 0.4 percent and the core index to edge up 0.2 percent.

A separate report showed housing starts leapt 8.3 percent last month -- the largest gain since September -- to a seasonally adjusted 1.780 million unit annual rate, well above the 1.694 million pace analysts had expected.

"Housing starts remain a bright spot in an economy that otherwise seems to be sputtering," said said Dana Johnson, the head of research at Banc One Capital Markets in Chicago.

Johnson and other analysts said the big jump marked an advance from a February level that had been temporarily depressed by unusually harsh winter weather.

Prices for U.S. Treasuries rose a shade and the dollar softened after the data. Stock prices rose at the opening bell, as investors focused on welcome earnings from high-tech bellwethers Intel Corp. (nasdaq: INTC - news - people) and Microsoft Corp. (nasdaq: INTC - news - people).

PRESSURE DROP

A 4.6 percent surge in energy costs accounted for more than 90 percent of the 0.3 percent rise in the overall CPI, Labor said.

Energy prices rose at an annual rate of nearly 77 percent over the last three months as oil prices spiked on a workers' strike in oil-rich Venezuela and worries over the potential for supply disruptions as the United States prepared for war against Iraq. However, oil prices began to drop sharply shortly before the war began.

While gasoline prices jumped 4.1 percent last month, an economist with Labor's Bureau of Labor Statistics said they were likely to be down about 8 percent in the CPI report for April due out next month, based on Energy Department data.

According to an Energy Department report released on Monday, prices at the pump have fallen 13.3 cents to an average $1.595 a gallon from the record high reached four weeks ago, just before the United States began bombing Baghdad.

BARELY BUDGED

With energy prices already receding, economists said the core inflation gauge, which has barely budged in recent months, marked a better measure of inflation trends.

Over the 12 months ended in March, core inflation has risen just 1.7 percent, matching February's climb as the smallest in 37 years. For the first quarter, the core CPI advanced at just a 0.8 percent annual rate, a sharp slowdown from last year's 1.9 percent increase.

"It's a good story, but not surprising given that there's lots of slack in demand for goods and services," Banc One's Johnson said. "With the economy continuing to struggle, core inflation should continue to drift lower over the next three to six months."

Economists said the subdued reading on core inflation offers scope for the Federal Reserve to lower interest rates further if needed to spur stronger growth.

Clothing prices extended a long slide, dropping 0.4 percent. Medical care costs, which had risen sharply last year, gained just 0.2 percent. Shelter costs held steady for a second straight month. Car prices rose just 0.2 percent last month, defying expectations among some economists for a larger gain.

"There certainly was some discounting here still going on," Labor's Patrick Jackman said.

While housing starts were up sharply last month, permits for future construction fell 7 percent last month, suggesting builders may anticipating a cooling market.

Housing activity has remained healthy despite a sluggish broader economy as mortgage interest rates have slid to lows not seen since the early 1960s.

However, some recent data have suggested the market may be cresting, although most economists and industry participants say they expect an orderly correction rather than a bust.

"Construction remains fundamentally sound," National City's DeKaser said. (Additional reporting by Mark Felsenthal)