www.vheadline.com Posted: Friday, February 28, 2003 By: Oscar Heck

VHeadline.com commentarist Oscar Heck writes: I have been thinking about the recent bombings in Caracas ... the bombings of the Spanish and Colombian embassies/consulates.

Kira Marquez's observations and comments, in her recent letter to Vheadline.com: "AD and Copei have used terror tactics each time they've needed them throughout Venezuela's history " are quite interesting, and probably close to reality.

My questions are:

1. Why were the Spanish and Colombian embassies/consulates bombed (2 of the countries that appear to support the opposition) and not the USA embassy?  If the supposed "terrorists" were bent of "punishing" anti-Chavez embassies, the main target would have been the US embassy (the US is an obvious supporter of the opposition). This brings up another question. Who may have been involved in the bombings?

2. Why were there no deaths, serious injuries or massive destruction? (I was at the Colombian bombing site yesterday). It appears to me that "terrorists" seeking real "impact" would not think twice about making sure that the bombs caused serious damage ... especially if it were true that Chavez and company are affiliated with Osama Bin Laden, Saddam Hussein and Khadaffi (as the opposition so intently believes).

3. Why is the media and opposition so quick to find "evidence" linking the bombings to radical pro-Chavez groups? Planting information is a very easy task. Furthermore, where is the hurry to "blame" someone. How long did it take to find the person who bombed the buildings in Oklahoma city? Other embassies throughout the world?

Changing subjects, yesterday, I saw Carlos Fernandez speaking on television ... he said that he has never done anything illegal or criminal (referring to the charges against him), and that he is simply a political prisoner. I believe he made that statement in public to prepare the ground for his "escape" from Venezuela to a country (such as Spain) that will give him refuge.

If Fernandez manages to convince countries outside Venezuela that he is truly a political prisoner, then he can easily justify his escape from the Venezuelan justice!

• By the way, Carlos Fernandez  is not a political prisoner ... he is a criminal, who has committed treason and has incited people to lawlessness.

On another note, the opposition is continuously lamenting their economic situation. Yesterday, I was driving around some of the "richer" areas of Caracas (opposition territory): Country Club, Chacao, La Castellana, Altamira, Las Mercedes, etc. Every restaurant had tens of cars parked in front, and these are not cheap restaurants.  Shopping centers were full of people buying.

Another interesting subject: On Globovision recently, a representative from "Petroleum People" (one of the major PDVSA union groups headed by Juan Fernandez) was asked "how has the firing of the many PDVSA employees affected their families?"  I was surprised by her response, which was something to this effect "...well, it has affected them very negatively ... many of the people who have been fired have been living in homes owned by PDVSA ... and now that they're fired, PDVSA naturally wants to have them move out."

Oscar Heck oscarheck111@hotmail.com

www.canada.com Vito Pilieci CanWest News Service Thursday, February 27, 2003

The Canadian Petroleum Products Institute says the continuing rise and fall of gas prices at the pump is not the product of collusion in the industry, but the result of a healthy competitive market.

"People don't understand and it's almost impossible to explain," said Alain Perez, president of the institute, an association of Canadian companies involved in the refining, distribution and marketing of petroleum products. "How do you convince people that you are actually losing money?"

Many motorists are quick to suggest a conspiracy when pump prices jump by several cents -- almost simultaneously -- at gas stations.

But Perez said the reason the prices rise is because competing gas stations, who are at war with one another for customers, continuously chip away at their prices, driving them downward over the course of a few days.

The prices continue to fall until the selling price of the gas is lower than what the gas station paid for it.

"(Consumers) think, 'Why am I driving in the morning and it's at 72.9 cents and coming back in the afternoon and seeing 79.9 cents?' " he said. "At 72.9 cents, people are actually losing money."

When the price reaches the money-losing level, one of the gas stations will raise its prices, usually by several cents, to offset losses, and all of the competing gas stations in the area quickly follow suit.

Then the cycle starts all over again.

"I cannot stop that, nobody can stop that," said Perez. "If we were able to stop that, we would be colluding."

The institute's statements come at a time when gas prices are soaring due to the threat of war in Iraq, economic strife in Venezuela and a long and very cold winter in Eastern Canada.

The statements were made in reaction to plans by a House of Commons committee, which wants to question Canadian oil industry executives about high gasoline prices over the next few weeks.

Canadian oil companies argue that aside from geopolitical events occurring around the world, high Canadian gas taxes are one of the most significant reasons that prices are soaring at the pumps. Taxes account for about 31.2 cents of the price of a litre of gasoline.

DEIRDRE MCMURDY Freelance Thursday, February 27, 2003

TORONTO - There was jubilation in Whistler, B.C., on Sept. 30, 2002. While the rest of Canada was still easing gently from summer into autumn, the resort town two hours north of Vancouver embraced the first snowstorm of the season - and the eight centimetres of powder it deposited in the surrounding mountains.

For local residents, that premature blast of winter ensured a strong start to a seasonal tourism industry that represents millions of dollars in annual revenue for multinational corporations like resort-owner Intrawest and Fairmont Hotels - as well as the thousands of people they employ and scores of small, independent businesses that serve the market.

Weather has become much more than the subject for stilted small talk in awkward social encounters. In an intensely competitive global economy, it's a variable that affects the performance of almost $3 trillion U.S. in North American economic activity.

In fact, it's now considered such an important determinant of business success or failure that Environment Canada's quarterly seasonal outlook is carefully guarded until its release. At the annual meeting of the American Meteorological Society earlier this month, some experts argued that the federal government must start treating its weather data like insider information.

"Details about the weather can move commodity prices - especially when it comes to trading futures contracts," explained David Phillips, senior climatologist with Environment Canada. "We treat that seriously."

Weather is now taken so seriously, that even the Central Intelligence Agency has started tracking weather patterns based on the rationale that they directly affect economic conditions, which in turn influence political trends.

"Weather is no longer seen as a random act of fate. It's very much part of the long-term decision-making process for business now," Phillips said.

Last year's mild winter in the United States is credited with staving off a full-blown recession by some economists. They claimed that lower heating costs, reduced snow removal bills, higher construction income, reduced transportation costs, fewer insurance losses and stronger retail sales combined to generate about $21 billion U.S. in economic activity - all because of the balmy temperatures. Housing starts, for example, jumped 6.3 per cent in January 2002, the highest level in two years.

That's not about to happen this year, however. Record cold spells - along with geopolitical turbulence in the Middle East and Venezuela - have created an imbalance in the supply and demand for heating fuel and gasoline. Normally at this time of year, refiners begin to build their inventories of gasoline in anticipation of increased driving volumes in the spring. This year, they're still struggling to meet the demand for heating-grade fuel - which could create a gasoline supply shortage later this year.

Natural gas prices have spiked by as much as 40 per cent - again, a function of robust demand outstripping easily-available supply.

Many electric power utilities have also faced a crunch, especially in light of their recent deregulation. Previously, when they encountered sharp increases in demand and soaring costs, regulators would allow them to pass along expenses directly to consumers. Now that they must compete in an open market, it has become tougher to pass along the costs to consumers.

Technology has played a critical role in the business sector's effort to get a grip on variables like weather. Intricate computer models fed by satellite data can now map out where high pressure ridges and storm systems will form weeks in advance. As a result, a three-day forecast is now about as accurate as a 24-hour forecast was 20 years ago.

This technology has also allowed weather to morph into a sophisticated financial product that has even begun trading on the Chicago Mercantile Exchange. The weather derivative market emerged around 1997, and less than three years later, it was valued at $8 billion U.S.

Weather derivatives let a corporation limit its weather-related losses by transferring a portion of the risk to an investor.

Given the heightened emphasis on forecasting weather and its economic effects, a growing number of companies are hiring in-house meteorologists. Transportation companies, oil and gas producers, utilities - even large brokerage firms now have them on staff to track conditions for futures traders and their clients.

Despite its formidable scientific and economic force, however, weather will never cede its place in our social interaction. After all, there's no subject quite as relevant anywhere in Canada: So is it cold enough for you?

Deirdre McMurdy is host of Moneywise, Monday to Friday at 12:30 p.m. on Global Television.

www.canoe.ca Thursday, February 27, 2003 By MARYANNA LEWYCKYJ, TORONTO SUN

Despite the recent deep freeze, the most wicked days of winter may lay ahead for homeowners using natural gas. That's because homeowners who deal with regulated utilities such as Enbridge and Union Gas are now paying artificially low prices for their fuel. But experts warn that it's only a matter of time before homeowners get whacked with huge increases to cover fuel that has been sold below its actual cost. Scotiabank reported yesterday that the commodity price for natural gas has quadrupled since this time last year and is approaching all-time highs set in During the winter of 2000-2001, Enbridge hiked rates twice -- by a whopping 45% on Oct. 1 and another 17% on Jan. 1. Regulated utilities estimate the cost of fuel when setting prices. If there's a shortfall between the estimate and the actual price, utilities can recover the difference. "Utility rates are very low right now," says John Kiemele, an analyst with En-Pro International Inc. He says customers at Enbridge and Union are paying about 21 cents per cubic metre, while today's spot prices are closer to 40 cents per cubic metre. "There's added costs for the consumer coming," says Kiemele. "They shouldn't look at their gas bill this past winter and assume that's all there is to come." Lisa McCarney, a spokesman for Enbridge Gas Distribution, said the utility reviews its rates every three months. Enbridge does not make a profit on gas supply charges. "At this point, we have not done the final analysis, but we would anticipate an increase in the gas supply price," said McCarney. The gas supply charge, which accounts for 54% of a total bill, could rise by 25%. The hike would take effect April 1. Customers with fixed-rate contracts with gas marketers such as Direct Energy would not be affected. The gas supply charge rose to 21.254 cents per cubic metre on Jan. 1, up from 19.095 cents. Natural gas prices were pulled up prior to winter as war worries and a strike in Venezuela caused crude oil prices to rise. A prolonged cold snap has sucked inventories 40% below last year, causing natural gas prices to hit a two-year high this week. "While the current 'war premium' in oil prices will likely fade over the next six to 12 months, a fundamentally tight North American supply-demand picture is expected to keep natural gas prices strong for some time," says Patricia Mohr, a Scotia Economics commodities specialist. Ironically, if Toronto is hit with an early heat wave this summer, homeowners will continue to suffer from high bills since natural gas is used to fire electricity plants.

seattletimes.nwsource.com Stephen Dunphy / Times staff columnist

Search web archiveHops growers are being challenged to cut production even further. For many, it is a tough decision after growing the key ingredient for beer for generations. Most hops in the country are grown in Washington state in the fertile ground of the Yakima Valley.

But the simple truth is there are more hops than the market can handle. Doug MacKinnon of the Hops Growers of America said at its annual meeting recently the industry needs to trim 10,000 acres from production and even that number may be conservative.

"The market has given every signal possible that it is so full of hops it is about to burst," MacKinnon told growers. "Breweries have purchased hops to satisfy 2003 and 2004 demand from the 2002 crop. Other breweries have said bluntly that at the current prices, they cannot afford not to buy hops even though they don't need them right now." The only way to go is with a firm contract, MacKinnon said. Anything else is a guess.

The first quarter after the holiday season is typically among the slowest periods for international cargo movement. But don't tell the Port of Tacoma.

Its North Intermodal Yard is starting 2003 like it closed 2002 — at a record-setting pace. The yard, which serves Evergreen Marine (Taiwan) and "K" Line (Japan), handled a record 7,312 intermodal lifts — transfers of containers between ship and rail — from Feb. 8-14. The previous one-week record was 6,825 lifts in October 2002, the first week after the West Coast labor lockout.

Compared with January 2002, Tacoma cargo volume was up 35 percent.

The Canadian border is less than 150 miles away, yet knowledge about U.S.-Canada trade is dismal. The U.S.-

Canada Partnership for Growth recently did a survey that revealed a lack of awareness about the importance of this trading relationship.

In a survey of 819 Americans, only 12 percent knew Canada was the largest buyer of U.S. goods and services. The top responses included Japan, China, the United Kingdom and Mexico.

Only 1 percent named Canada as the leading source of oil and natural gas for the U.S. market. Saudi Arabia, Iraq, Venezuela, Kuwait, Mexico and Iran received much higher percentages. Canada is the largest supplier of oil to the U.S. and provides most U.S. natural-gas imports.

The U.S. does more trade with Canada than with the entire European Union. Canada buys more U.S. goods and services than any other country, and 37 of the 50 states list Canada as their top foreign customer.

RBC Dain Rauscher economist Vince Boberski questions the emphasis investors and commentators are placing on the possible war with Iraq. It's too easy to blame potential conflict for the problems in the economy, he said.

The war plays a role, of course, but it is not the primary reason for high unemployment and a lack of business investment.

"It is a lack of pricing power for the makers and distributors of real goods," Boberski said. "It is, for manufacturers, a stubbornly strong dollar that has begun to move toward more reasonable only over the last 2-½ months. It is a reaction to overly zealous hiring during the boom. And it is a realization that computers and software can last, say, four years instead of three."

Sounds right to me. Basic business conditions have always been more important than speculation.

Stephen H. Dunphy's phone: 206-464-2365. Fax: 206-382-8879. E-mail: sdunphy@seattletimes.com. More columns at www.seattletimes.com/columnists