www.timesonline.co.uk

Patience Wheatcroft, Business Editor, asks if the energy White Paper will do enough and what will happen to oil prices.

"The Government today set out its long-awaited White Paper on the future of energy.

"Patricia Hewitt wants to cut carbon emissions over the next 50 years via a major expansion of renewable energy.

"Goals include doubling the share of electricity from renewable sources by 2020 from the existing 2010 target of 10 per cent.

"Spending on renewable energy will also be increased, rising to £348 million over four years.

"Has the White Paper gone far enough, however?

"Oil prices have pushed ahead recently.

"The drawn-out strike in Venezuela has already taken its toll, with US crude stocks recently falling to 28-year lows.

"Added to that is the prospect of war in Iraq and fears conflict could halt Middle Eastern supplies.

"Hawkish oil traders are predicting a US-led attack will go ahead in the first half of March.

"That could boost prices to $40 a barrel followed by a sharp decline if the war ends quickly.

"Matters are less clear if it drags out, however.

"What then is going to happen to oil prices and what will it mean for consumers?"

www.mpa.gr Thessaloniki, 21 February 2003 (12:44 UTC+2)

There will be significant consequences on the global and European economy (decrease in production and exports, increase of inflation) if there is a military intervention in Iraq, according to the appreciation of Greek Petroleums' consultant Giorgos Halvatzoglou, who did not rule out the possibility of oil prices doubling if the crises lasts. However, as he stated to the mpa.gr, the consequences of a crisis will not have the same effect on Greece, mainly due to its energy reserves, which can cover its needs for more than 90 days. “The import percentage of oil to Greece from Iraq is under 10%”, stated Mr. Halvatzoglou, and added that the greater percentage of oil imports are from Russia, Libya and other countries. Besides, he noted that the volume of oil exported from Iraq is determined by the UN and that the end of the crisis in Venezuela will play an important role in balancing the market. Regarding the informal EU Energy Minister's Meeting on Saturday, he characterized it as an important initiative of the Ministry of Development for the promotion of a common management policy for energy and the effort to form a observation post which will watch over developments in the global market and form the choices of the EU. He also mentioned that the possible participation of OPEC's Secretary General in the meeting, could lead to commitments from the side of the Organization for increases in the productivity of its member-states, if it is deemed necessary. According to Mr. Halvatzoglou, the EU's energy dependence has already made it turn to the use of alternative power sources, friendly to the environment, such as natural gas and wind powered energy production, at 20% of the total energy produced. Furthermore, he characterized the initiative of the Greek Ministry of Development to form a body for the control of fuel circulation especially useful to the Greek market. “The checks seem to be working, as smuggling and mixing of fuels has dropped and prices and quality are held at the same level”, he said. On Greece's role in the Balkans regarding energy transportation towards Europe, he supported that their strategic position will prove as even more of a hub, both for oil and natural gas pipelines, as well as electricity distribution from Asia and Africa.