sg.biz.yahoo.com January 31, 8:56 PM

KARACHI (Dow Jones)--Pakistan's petroleum retail prices will rise an average of 2.4% because of increasing international prices amid the threat of war in Iraq and a strike in crude-giant Venezuela, the oil industry said in a statement Friday.

"In the backdrop of the Iraq crisis and a strike that has disrupted crude exports from Venezuela, prices of crude oil and products have undergone a sharp increase," the Oil Companies' Advisory Committee said in a statement.

The committee, which comprises oil marketing companies and refineries, said oil prices in the Gulf region have risen to their highest level since July 2001.

ADVERTISEMENT Pakistan buys most of its crude and products from Saudi Arabia, United Arab Emirates and Kuwait.

The statement said light Arabian crude rose 6.1% to $29.60 a barrel in the past 15 days and has gained 8.6% during January.

Domestic prices are normally linked to oil prices in the Gulf region, taxes, and changes in the value of the rupee against the dollar over the previous two weeks.

Oil companies declare high-sulfur diesel and fuel oil prices separately after the two products' markets were deregulated.

Pakistan's oil companies amend retail prices every 15 days under a price review system. Following are the new prices in Pakistan rupees a liter:

                  New Price     Previous Price  %Change

Motor Gasoline PKR32.96 PKR32.64 0.98 High Octane PKR36.83 PKR36.55 0.77 Kerosene Oil PKR21.32 PKR20.62 3.39 Light Speed Diesel PKR18.30 PKR17.53 4.39

-By Saeed Azhar, Dow Jones Newswires; 9221-5872854; saeed.azhar@dowjones.com

www.techcentralstation.com By Brock Yates 01/31/2003

I am truly concerned about the mental health of the liberal establishment. While they seem to have gotten over the alleged election theft from poor Albert and the loss of the Congress in November, this Sport Utility thing seems to have driven them to the edge of madness. Fulminations about these vehicles have escalated to a point where other depredations against humanity by the likes of Saddam Hussein pale by comparison.

Now here comes Gregg Easterbrook in the January 20th issue of The New Republic reviewing Keith Bradsher's anti-SUV polemic "High and the Mighty: SUV's, the World's Most Dangerous Vehicle and How They Got That Way." Easterbrook breaks new ground of hysteria with such florid descriptions of cars such as my own Jeep Grand Cherokee as "Godzilla instruments of death" and "paranoiac contraptions". Wow, and I was celebrating the poor old beast for helping me plow through two feet of snow that blasted Upstate New York during one of the harshest winters since global warming was invented.

Perhaps I should call out the highway patrol to bring back my wife Pamela, who just left on a shopping trip with my eight-year-old granddaughter, Sarah, in her "Godzilla of Death."

Easterbrook's diatribe covers all the predictable bases; that SUV's suck up too much oil, kill innocents by the score in rollovers and, worse yet, transform drivers into homicidal maniacs devoted to crushing Honda Civics in their path.

There are, of course, elemental problems involved in assaults like Easterbook's and those of his idol, Mr. Bradsher. We will discount idiocies on the issue from such luminaries as Ms. Arianna Huffington, who likens the SUV motoring to direct Al Qaeda support or to assorted theological nitwits who wrestle with such cosmic issues as to why Jesus would not drive such vehicles.

For openers, the accusation that SUV's roll over more often (a 22% increase of all rollover accidents in 2001, regardless of the type of car, is cited as the fault of SUV's) can be countered in two ways.

First, the trend line for automobile fatalities has plunged downward for 15 years - ironically since SUV's began to gain market share.

Second, driver error must be included, understanding as we do that a vehicle with a higher center of gravity like an SUV demands added skill and knowledge. But in a no-fault society such as ours, driver responsibility is a non-factor. Even a demented, paraplegic, myopic octogenarian has the same level of safety behind the wheel as a normal human being, according to the politically correct dogma of the day.

Yes, SUV's demand more attention and skill than say, a low, road-hugging BMW. Yes, they can roll over when attempting to treat them like a Formula One car.

But their usefulness in snowy weather, for packing large amounts of luggage, groceries, and recreational gear, not to mention hauling boats, Jet Skis, travel trailers, snowmobiles (yes, we barbarians in the hinterlands outside Washington and New York do engage in such primitive activities) is a great boon to modern, multi-task living.

As for the accusation that SUV's lead to madness behind the wheel and increases in "road rage", there is not even a shred of proof that such behavior ever exists. "Road Rage" is a shibboleth, unless all illegal behavior - such as running red lights or speeding - is included in the statistics.

Easterbrook moans that the fact that many SUV's carry optional grille guards serves as an example of latent hospitality and concealed homicidal urges. Excuse me, but I know dozens of SUV owners who install such accessories as simple décor items and to hold extra driving lights that are needed on dark country roads beyond the Beltway and Manhattan Island.

But perhaps the most ludicrous of the indictments has to do with the alleged gluttony of the vehicles and how they fill the coffers of the Petrol-Mullahs of the Persian Gulf.

Before we go nuts about such profligate waste consider that only 12 percent of our petroleum (that's one gallon in eight for mathematical ingrates like myself) comes from the Middle East. Moreover, only about 30 cents of the $1.50 we spend for a gallon of gasoline is for crude oil - the rest being for things like taxes, distribution costs and middlemen. Only 15 cents a gallon actually goes to the dreaded potentates. According to people who work calculators better than I, that means 0.8 percent - or less than one percent of the money we spend for gasoline actually ends up in Saudi Arabia, Iraq, Iran, the UAR, etc.

Yes, we've got trouble in Venezuela and probably a war, albeit a brief one, in Iraq. But we can still live with foreign oil supplies as new energy conservation sources come on line. Secondly, this nonsense about SUV's can be counter-balanced by the fact that intelligent, non-aggressive, sensible, normal citizens like my wife find them eminently useful, flexible and safe.

As the trucky hulks built on aged pickup chassis are phased out and replaced by cross-over, car-like SUV's that are lower, stronger and better handling, this entire issue that is so stupidly resonant at the moment will surely fade away

At that point I hope experts on the subject like Mr. Bradsher, and Easterbrook, Ms. Huffington and the usually rational Fox news guy Bill O'Reilly will return to their senses.

www.canada.com GILLIAN LIVINGSTON CP Friday, January 31, 2003

Iraqi, Venezuelan crises boost prices. Big 4 nearly triple fourth-quarter profits, but a repeat this year seems unlikely   Four of Canada's biggest integrated oil companies nearly tripled their fourth-quarter profits to $1.3 billion thanks to higher oil and gas prices, but analysts say there probably won't be a repeat performance in 2003.

For Imperial Oil, Petro-Canada, Shell Canada and Suncor Energy, the fourth quarter in particular and 2002 overall was a bonanza as the threat of a U.S. war with Iraq and a major strike in Venezuela pushed oil prices above $30 U.S. a barrel by year end.

Higher prices for oil and natural gas helped make 2002 a stellar year for the industry leaders, which also benefited from increased production from new projects or acquisitions and improved profits in gasoline refining and marketing to make it a stellar year for the industry.

But Gord Currie, an analyst with Canaccord Capital, said it's "unlikely" that '03 will be as strong as 2002 for Canada's big oil companies because prices are likely to dip as the Iraq situation is resolved.

"Whenever oil and gas prices are as high as they are today the balance of probabilities is that they're going to be lower," he said. "I think it's just a question of time - is it the second quarter or a year from now, we don't know. But it would be very difficult for 2003 to measure up."

The results disclosed so far by four of Canada's biggest oil producers, refiners and gasoline marketers show they are reaping the benefits of higher prices while they have that option.

EnCana Corp., created last year by the merger of PanCanadian Energy and Alberta Energy Corp. to create the largest Canadian independent oil and gas producer, isn't due to release its fourth-quarter results until Feb. 20. But Petro-Canada issued vastly improved results yesterday when it reported a 440-per-cent increase in its fourth-quarter earnings - to $356 million from $66 million a year ago.

Higher energy prices were the main cause, although Petro-Canada also gained from its acquisition last year of the international assets of Veba Oil & Gas, whose production and exploration is focused in the North Sea, North Africa and northern Latin America.

Petro-Canada chief executive Ron Brenneman called 2002 "an outstanding year" which annual profits rose by 15 per cent over 2001 to $974 million.

Shell Canada's earnings report yesterday echoed these events as its profits rose to $247 million in the fourth quarter from $170 million a year ago. Full-year profits, fell, however, to $561 million from just over $1 billion a year ago, a period of extraordinarily high natural-gas prices.

Last week, Calgary-based Suncor Energy reported fourth-quarter profits soared more than tenfold to $258 million from $26 million. For the year, profits of $761 million were nearly double the year earlier.

Energy giant Imperial Oil more than doubled its profits to $454 million in the fourth quarter as high oil prices helped the company post its third-biggest annual profit ever.

For the full year, the Toronto-based company, a subsidiary of U.S.-based ExxonMobil, earned a profit of $1.2 billion compared with $1.24 billion in 2001.

Gushing Cash

Imperial Oil Ltd.

Quarterly profits: $454 million, up from $194 million in the year-earlier period.

Company: Imperial operates national chain of 2,500 Esso gasoline stations, a number of oil refineries and is produces heavy oil and natural gas.

Shell Canada Ltd.

Quarterly profits: $247 million, up from $170 million.

Company: Major gas producer. Owns national chain of Shell stations.

Petro-Canada Inc.

Quarterly profits: $356 million, up from $60 million last year.

Company: A major oil and gas producer, it also operates national gas-station chain.

Suncor Energy Inc.

Quarterly profits: $258 million, up from $26 million last year.

Company: A major oilsands producer in northern Alberta. It also has a chain of Sunoco gasoline stations in Ontario.

reuters.com Fri January 31, 2003 05:40 AM ET By Tanya Pang

SINGAPORE (Reuters) - Oil prices held steady on Friday, treading water as traders waited to see whether talks later in the day between U.S. and British leaders would bring war with Iraq one step closer.

U.S. light crude CLc1 eased seven cents to $33.78 a barrel and London Brent LCOc1 rose six cents to $31.27.

Low global oil stocks and limited spare production capacity to counter the severe reduction in strike-bound Venezuelan oil exports, and the potential disruption to Iraqi oil sales, have taken crude prices up more than 30 percent since late November.

Analysts see little relief for the time being to high oil costs, which are beginning to percolate into the broader global economy.

"The current environment suggests to us that a potential war with Iraq carries significant upward price risks, even from current levels, in the event of any supply hiccup that develops outside the likely interruption to Iraq's exports," said Merrill Lynch in a weekly outlook.

Iraq is eighth in world crude exporter rankings, selling up to two million barrels per day to the international market.

British Prime Minister Tony Blair arrived in Washington late on Thursday for talks at Camp David with President Bush on the next step in the showdown with Iraq.

Bush said on Thursday that he would give diplomacy "weeks not months." Secretary of State Colin Powell is due to present evidence on Wednesday to the U.N. Security Council to show that Baghdad is pursuing programs to build biological, chemical or even nuclear weapons.

Washington and its staunchest ally, London, are massing a huge military force in the Gulf, and Bush has vowed to disarm President Saddam Hussein, with or without United Nations backing.

VENEZUELA TALKS CONTINUE

Talks were set to continue in Venezuela on Friday to try to find a resolution to the eight-week-old strike, which has slashed oil sales to the United States, where fuel inventories are hovering close to historic lows.

Envoys from the United States, Brazil, Mexico, Chile, Spain and Portugal gathered in Caracas on Thursday to bolster talks between President Hugo Chavez and his opponents.

Ali Rodriguez, president of state oil firm Petroleos de Venezuela, said on Thursday crude production should be back to about 2.8 million barrels per day by the end of February, but opposition leaders dispute the claims.

Ciro Izarra, PDVSA's former head of trading, who was fired for going on strike, said the company was unlikely to be able to meet contractual deliveries for the rest of 2003 due to problems with output, refining and management.

Authorities have fired more than 5,000 PDVSA managers and technicians to try and break the strike, which began on December 2 and is aimed at forcing the resignation of Chavez.

Izarra said he expected Venezuela to export an average 1.7 million bpd this year, one million bpd below pre-strike levels, if Chavez continued to operate the industry without the majority of its skilled workers and managers.

OPEC president Abdullah al-Attiyah said on Thursday that the producers' group had done all it could to control prices.

"OPEC has no magic wand to solve the political problems and stop the rise in price," Attiyah, who is also Qatari oil minister, told Reuters.

www.canoe.ca, January 31, 2003 By TODD NOGIER, BUSINESS EDITOR

 Two more of Canada's largest oil companies reported massive increases in profits, boosted by sky-high oil and gas prices at the end of 2002.

Petro-Canada said yesterday its fourth- quarter earnings soared 440% over the same quarter last year to $356 million while Shell Canada's profits jumped 45% to $247 million.

They are the latest oil firms to enjoy the bonanza in the oilpatch which has seen the country's four largest integrated companies -- which produce, refine then sell petroleum products -- rake in a total of $1.3 billion in profits in the final three months of 2002.

The fourth quarter capped off what Petro-Canada's CEO Ron Brenneman called "a water-shed" year for the Calgary-based company, which earned $974 million last year.

"We were really firing on all cylinders," Brenneman told analysts after releasing the sterling quarterly report.

Shell Canada also saw a big rise in profits on the quarter and on the year earnings hit $561 million.

"Good operational performance, following an extensive second-quarter maintenance schedule, allowed us to benefit from improved commodity prices and refining margins in the second half," said CEO Tim Faithfull.

The industry is riding a wave of strong oil prices which have jumped more than 30% in the last three months on fears world supplies could plummet due to the combination of an workers' strike in Venezuela and war in the Middle East.

Canadian natural gas prices surged more than 60% at the end of 2002 as cold weather in key regions of the U.S. sent demand skyrocketing.

Husky Energy, the only remaining major integrated in the country yet to divulge its fourth- quarter earnings picture, is set to report Feb. 6.

While the fourth-quarter gusher may look good on the balance sheet, most experts predict lower prices ahead after the Iraqi and Venezuelan situations subside.

"Whenever oil and gas prices are as high as they are today, the balance of probabilities is that they're going to be lower," said Gord Currie, an analyst with Canaccord Capital.

"I think it's just a question of time -- is it the second quarter or a year from now, we don't know. But it would be very difficult for 2003 to measure up."

But in the case of Petro-Canada and Shell, both can look forward to a big year.

Petro-Canada is enjoying a strong production increase from Veba Oil & Gas, which it purchased last year for $3.2 billion, good performance at its East Coast operations and improving retail sales.

Shell will reap the 155,000 barrel-a-day production from its marquee Athabasca oilsands project which started operations in December and will hit its peak later this year.

PETRO-CANADA

• Fourth quarter 2002 profit: $356 million.
• Fourth quarter 2001 profit: $66 million. ESSO
• Fourth quarter 2002 profit: $454 million.
• Fourth quarter 2001 profit: $194 million. SHELL
• Fourth quarter 2002 profit: $247 million.
• Fourth quarter 2001 profit: $170 million. SUNCOR
• Fourth quarter 2002 profit: $258 million.
• Fourth quarter 2001 profit: $26 million. HUSKY
• Fourth quarter 2002 profit:TBA Feb. 6.
• Fourth quarter 2001 profit: $49 million.