<a href=www.ctv.ca>Canadian Press

CALGARY — The United States slurps up more oil and natural gas from Canada than any other country on Earth.

And with war raging in the Middle East, civil uprisings in other oil-producing countries and a recent decision not to drill in a sensitive U.S. Arctic wildlife refuge in Alaska, even greater demand for Canadian energy is expected.

The daily flow of Canadian oil to the U.S. has increased dramatically in recent years to almost double the quantity a decade ago.

Canada is second only to Saudi Arabia as a source of imported oil in America, which in January bought 1.8 million barrels per day from the Saudis and 1.6 million barrels per day from Canada.

When imports of natural gas are included, the importance of Canada as an energy source for the United States becomes even greater. Canada supplied about 94 per cent of American gas imports last year.

Yet with all the volatility in global energy markets, talk of future U.S. energy supplies rarely focus on Canada.

"I don't think Canadian oil production comes first of mind to Americans when they think of where their gas, diesel and jet product comes from," said Rick George, president of oilsands giant Suncor Energy.

But recent U.S. media attention to the massive energy reserves in the northern Alberta oilsands -- and the synthetic crude created from its bitumen -- suggests awareness is quickly growing, he said.

"My belief is it will be positive," said George.

For the first time, a recent report by the Oil and Gas Journal on global oil reserves included 177 billion barrels of reserves from the oilsands -- a number that dwarfs estimated reserves of Canadian conventional oil.

Greg Stringham, a vice-president of the Canadian Association of Petroleum Producers, says political stability is also a key ingredient for energy trade between the U.S. and Canada.

Despite a recent disagreement between the Bush administration and the Chretien government over the handling of the Iraqi crisis, the energy-trading business has been very open and free, Stringham said.

"They're a good market, we're a good supplier. (The United States) is close and it's connected by pipeline. So all of those things add to our attractiveness as a potential producer," Stringham said.

Meanwhile, recent political problems have made several of the world's other large energy producers less-than attractive as an energy source for the United States.

Vince Lauerman, a global energy strategist with the Canadian Energy Research Institute, says a "relatively long and brutal war" in Iraq would greatly enhance demand for Canadian energy.

"The worse the war goes, and the more the Middle East boils, the higher energy security becomes as an important issue to Washington," Lauerman said.

"And with that comes benefits to Canada."

But the Middle East is not the only trouble spot for global oil production.

About 40 per cent, or 800,000 barrels per day, of Nigeria's oil production was cut off this week as major energy companies evacuated staff amid tribal fighting that has killed at least 100 people in the African country in the past two weeks.

And Venezuela is still struggling to recover from a two-month strike that failed to oust President Hugo Chavez and paralysed the South American country's lifeblood oil industry, costing about $9 billion.

Venezuela is still only producing about two-thirds of its three million barrels per day total it had before the strike and the situation remains volatile as Chavez continues to seek revenge on strike leaders.

Still, geopolitical turmoil does not necessarily mean greater demand for Canadian oil, said one U.S. energy company spokesman who asked not to be identified "There's lots of sources out there and a well-developed oil infrastructure all over the world."

But a recent political decision in Washington -- overshadowed by Iraqi war coverage -- has the potential to increase U.S. demand for Canadian energy in future.

Last week, the U.S. Senate narrowly rejected a budget provision that would have allowed oil drilling in the 77,000-square kilometre Alaska National Wildlife Refuge.

Development of the refuge had been a key part of President George Bush's energy plan -- despite opposition from environmentalists who fear that drilling would jeopardize the delicate ecosystem and its wildlife.

Stringham said he doesn't believe attempts to drill in the wildlife refuge will go away. "The administration down there has been quite adamant in trying to put it forward and I'm not sure if they're ready to just drop it at this point in time."

Canada has long lobbied for a U.S. ban on drilling in the wildlife refuge and has taken a more prominent role recently in promoting Canadian energy to its larger neighbour to the south.

Some Canadian oil executives, however, say further lobbying efforts are not needed to increase U.S. demand for energy.

"I think what we've got to show is steady supply, good quality product and reliable outcomes," said Suncor's George. "And then the market will come."

<a href=www.vheadline.com>Venezuela Electronic News Posted: Thursday, March 27, 2003 By: Patrick J. O'Donoghue

In an important editorial TalCual.com afternoon tabloid reminds readers that it endorsed the strategy of fighting for a recall referendum as far back as June 18, 2002, a month after the failed coup against the Chavez Frias administration. 

• At the time, quick-fix adversaries chimed back that the country could not wait till August 2003 ... "it was an irresponsible pretext for coup solutions." 

Editor Teodoro Petkoff warns that there are only 5 months before President Hugo Chavez Frias reaches the half way mark of his term in office and the opposition must get its act together now by clearing the way for the recall referendum. "However, a new alibi has appeared: Chavez will not go to the ballet box."

The editorial states that while there are people of good faith believing the alibi, there are also people in the Chavist camp, who think that the opposition cannot be believed either ... "that's how polarization works: mutual disregard and reciprocal demonization are the predominant characteristics." 

Others, Talcual warns,  maliciously use the pretext as a disguise for new coup attempts. The editorial admits that Chavez Frias has no interest in going to the polls and will try to delay and throw obstacles in the way of a  recall referendum.

"The opposition IS  interested in elections and there is not much Chavez Frias can do, except for a house coup like Perez Jimenez did in 1957 ... he fell from power two months later. "

The opposition has to get its act together and its first move must be to establish the validity of signatures already handed in. 

The proposal that Chavez Frias can run for subsequent presidential elections must also be discussed at the negotiations, the tabloid insists,  each and every time Executive Vice President Jose Vicente Rangel brings the topic up.

Natural gas rates hiked by 16 per cent

canada.com Friday, March 21, 2003

VANCOUVER (CP) -- The B.C. Utilities Commission said Friday it has approved a B.C. Gas application for an increase in the rates it charges for natural gas.

The increase will add approximately 16 per cent to the typical residential customer's total gas bill, the commission said in a news release.

It estimated the rate hike will add $184 a year for a typical Vancouver-area home, $167 a year for a home in the B.C. Interior and $183 a year for a home in the Kootenay region of southeastern British Columbia.

The increase will take effect April 1.

Natural gas prices have risen substantially on the open market in the last six months because of heavy demand due to cold-weather heating requirements, the commission said.

Rising crude oil prices, spurred by civil disruption in Venezuela and uncertainty around the Middle East situation have also pushed up natural gas prices.

The B.C. Gas rate increase allows the utility to pass on its increased cost to consumers. The commodity price of gas makes up about two thirds of the typical residential gas bill.

new.stockwatch.com 2003-03-21 14:37 ET - News Release Mr. Dean Pelkey reports

B.C. UTILITIES COMMISSION APPROVES 16 PER CENT BC GAS RATE INCREASE

The British Columbia Utilities Commission has approved BC Gas's application for an increase in the rates it charges for the natural gas commodity.

The increase will add approximately 16 per cent to the typical residential customer's total gas bill. That works out to an additional $184 per year for a typical Lower Mainland home; $167 per year for a typical home in the Interior and $183 per year for a typical home in the Kootenays.

The increase will take effect April 1, 2003.

Natural gas is a commodity traded on the open market, like oil or gold. In the past six months, the market price of natural gas has increased substantially, driven upward by heavy demand in the east as a result of a very cold winter. Rising crude oil prices, spurred by civil disruption in Venezuela and uncertainty around the Middle East situation have also served to push natural gas and other energy prices upward.

BC Gas Utility does not earn a profit on natural gas; the utility's cost is passed onto the customer and any rate change must be approved by the B.C. Utilities Commission.

The cost of the natural gas makes up about two-thirds of the typical residential gas bill. The remaining one-third is composed of delivery charges. Customers can check the rate they pay for natural gas on their BC Gas bill, since it is listed separately from the delivery charges.

Consumers can find more information on how to save energy and reduce gas consumption on the BC Gas Web site at www.bcgas.com.

www.recordonline.com March 20, 2003 By Chris Bender Times Herald Record cbender@th-record.com

Threats of war, record cold temperatures and the two-month oil strike in Venezuela, which ended early February, caused the price of propane to skyrocket. In the first week of March, the national average reached $1.72 per gallon, according to the Energy Information Administration. That was the highest price ever on the EIA's price survey, which dates back to October 1990. Customers in the mid-Hudson Valley are paying considerably more than in years past. Porco Gas Service in Marlborough, for instance, is charging 29 percent more this year than last. For the average home heating account, Porco is charging about $1.63 a gallon, up from $1.26 a year ago. Overall, mid-Hudson Valley propane customers are paying an average of 37 percent – or $550 – more a year than last March, according to a New York State Energy Research and Development Authority weekly report. "They [prices] started coming down," said Tom Hesslop, legislative chairman for the New York Propane Gas Association. "But prices are still dramatically above last year." Propane can be found as a gas or a liquid, and is used for heating and cooling homes, cooking and lighting. Approximately 8 million U.S. homes use propane, according to National Propane Gas Association. A typical home with propane heat consumes 1,100 gallons a year, paying an average of $1.84 a gallon, or $2,024 for the year, according to NYSERDA. With the price of oil experiencing record highs, propane prices naturally follow suit because the gas is a byproduct of crude oil and natural gas liquids. Oil prices are currently in the mid-$30s per barrel, an "unprecedented" price for recent years, said Joseph Armentano, president of the New York Propane Gas Association. To ease the financial burden on residential customers, some marketers have set up payment plans to pay bills over an extended period, Armentano said. According to Mike Taylor of Combined Energy Services in Monticello, the cold temperatures this winter caused the pipeline supplying much of the Northeast's propane to run at 25 percent of its total capacity. This prompted price increases for consumers and companies to "spot" buy or purchase propane outside their normal source. It also caused eight- to 12-hour waits for trucks looking to fill up for their deliveries. The Texas Eastern Products Pipeline may be working better due to warmer weather, but the supply for the pipeline is "historically low," said Hesslop. Watkins Glen, Oneonta and Selkirk are the pipeline's three supply terminals providing gasoline and propane for New York state. A sizable portion of the financial strain for local gas companies was transportation expenses from Selkirk to their smaller storage facilities. Taylor spent $1,200 for each tractor-trailer load, $800 more than normal. For now, prices have fallen slightly, but Armentano cautions that at the end of March there may be a major price spike like the ones in February. For now, prices have fallen slightly, but Armentano thinks a war in Iraq could bring another spike.