SUBSIDIES KEEP GAS AT NICKEL PER GALLON IN IRAQ
By Ella Tyler

US drivers may be shocked and resentful to find that government subsidies allow consumers in Iraq to pay as little as a nickel per gallon for gasoline. The International Monetary Fund, which provided $430 million in financial support to Iraq in 2004, believes that the subsidy threatens the country's fragile economy. The subsidy cost the Iraqi government $3 billion in 2004.

"With its huge reconstruction needs, as well as its need to rebuild its social services, ... it is hard to justify using such a large amount of Iraq's precious oil resources in this way," Adam Bennet, an assistant director at IMF, explained.

Bennett also alleged that the subsidy encourages smuggling and corruption. Even if an Iraqi must pay black market prices to get gas, prices remain low enough that smuggling to nearby countries is profitable. In Jordan, gas is currently the equivalent of $1.89 a gallon; in Syria it is $1.74.

In some oil exporting countries such as Iran, Kuwait, Saudi Arabia, Nigeria, and Venezuela, gasoline is less than a $1 per gallon, according to a survey done by Associates for International Research. In many of these countries, some or all of the petroleum cracking and refining facilities are state-owned, and the government subsidizes the price of gas as a benefit to its citizens.

In Saudi Arabia, where gas is $.92 per gallon, the price is low because, "there is no cost of shipping, no taxes, and the overall cost of refining gasoline is cheaper there than anywhere else," according to Nail Al Jubier of the Saudi Arabian consulate in Washington. There have been several new refineries built in Saudi in the past few years.

However, private car ownership in these countries is very low. In Saudi, about 10% of the population owns a car; in Iran, about 3.5% owns a car. In the US, more than 70% of the population owns a car; in Great Britain, about 40% owns a car.

In Russia, the world's second largest oil exporter, the price for gasoline in March was $2.10 per gallon. In contrast, Norway, which has huge oil production from North Sea fields, and exports much of it, has some of the highest gas prices in the world. In March, gas there retailed at the equivalent of $6.27 per gallon.

In other European countries, the March prices for gasoline ranged from $4.50 per gallon to $6.50. It Tokyo, the price was about $4.50.

In Europe, taxes are between 65 and 75% of the price of gasoline. In the US, taxes are between 20 and 30% of the price, depending upon the state. European taxes are designed to encourage conservation and fuel-efficient technologies and are used to pay for public transportation.

Energy analysts predict that when oil prices reach $90 per barrel, US drivers will begin to moderate their driving habits. Erik Kriel of the Energy Information Administration explained the experts' reasoning. "Each dollar hike in the price of a barrel of oil increases the retail price of gasoline by 2.5 cents," he said. "In 1982, when gas prices peaked, we began to see a demand for more efficient cars and more public transit... When you adjust the 1982 prices for inflation, that is about $3.00 per gallon, which works out to $90 per barrel," he concluded.

Kriel said that after the gas prices of the '80s subsided, US drivers began to buy bigger and heavier cars, and, "even though engines got more efficient, overall gas mileage decreased."

Europeans buy cars that are more gasoline efficient than the ones sold in the US. Cars in Europe get 50 to 70 miles per gallon. Some get more. The Volkswagen Lupo averages 90 mpg and a GM Precept 80 mpg.

European drivers deal with high gasoline prices in a variety of other ways, too. "On average, British drivers use their cars 46% less than Americans. French Drivers use their cars 40% less than Americans," according to an story in the San Diego Union-Tribune. In London, drivers who were willing to tackle the crippling traffic rather than use public transportation, finally gave up their cars when a $14.50 congestion charge was imposed.

The sales of hybrid cars have increased and more drivers are using motor scooters instead of cars. About half the new cars in Europe have diesel engines. They get about 30% better mileage but are more polluting than gasoline engines. However, bio-diesel fuels are being developed.

European road design encourages fuel efficiency. Traffic circles or roundabouts, widely used in Europe, save gas, time, and reduce crash risk.

Although nickel per gallon gasoline is unlikely to last for the Iraqis, $2 per gallon is unlikely to return for most other consumers. US carmakers should look to their European competitors to see how to meet the challenges of the new market, in which big cars will no longer appeal to the majority of US buyers.

CITIZENS' STATE OF THE BAY CONFERENCE

Galveston Bay Conservation and Preservation Association, the Houston Group of the Sierra Club and the Houston Audubon Society are hosting a full-day conference about the current state of Galveston Bay. The meeting will be Saturday, September 10, at the University of Houston Clear Lake.
More than a dozen speakers, including Shoreacres mayor Nancy Edmonson, ecotourism expert Ted Eubanks, and Jerry Poje, a former member of the US Chemical Safety Board, will review the varied threats to the bay and consider whether governmental agencies are doing what is needed to protect it. Topics all relate to land use pressures and resulting habitat losses: runaway development on Galveston Island; continuing hazards posed by the petrochemical industry; how air pollution affects the bay; and the pending fight over freshwater inflows so crucial to the ecological functioning of the estuary. Other attractions are exhibits by local conservation groups, a guided bird walk at 7 am, and a display by kayakers from the Galveston Bay Eco-Paddle Association.
Registration is $20 and includes a box lunch. For more information, call 281-326-3343, email gbcpa@ev1.net or visit http://www.gbcpa.net.

AFTER-SCHOOL VOLUNTEERS NEEDED

The Education Foundation of Harris County is adding new environmental education programs to its after-school projects and is seeking help from environmental organizations. In its first year, the after-school programs served more than 10,000 Harris County schoolchildren, kindergarten through 12th grade. The after-school program is a project of the Education Foundation and the Harris County Department of Education. To volunteer, contact Chantel L. Henderson at (713) 696-1322 or chenderson@hcde-texas.org.

NEW DIRECTOR FOR PARK PEOPLE

L. Diane Schenke is the new executive director of the Park People, joining the group on August 1. Before coming to the Park People, Diane worked for the Nature Conservancy, serving as manager of the Texas Upper and Mid-Coast Program. She was executive director of the Grand Parkway Association from 1996 to 2001. Diane practiced law for twenty years before entering the non-profit sector. She was named a "Best Lawyer in America" for 1995-1996. Diane is a trustee for the Galveston Bay Foundation, serves on the board of trustees for Houston Wilderness, and is a member of the Church Council at St. Paul's United Methodist Church.

HOUSTON PARKS BOARD SEEKS ACCOUNTANT / BOOKKEEPER

This staff member will be responsible for all bookkeeping and accounting functions, human resources functions, the functioning of all electronic equipment in the office, and other duties such as managing leases and concessions. The office has four full-time and one part-time staff member. Minimum five years of relevant experience, including experience with construction accounting, structuring chart of accounts for multiple funds, and proficiency with Blackbaud and Excel Spreadsheet, is desired. Send cover letter, resume, and salary requirements to Roksan Okan-Vick, Executive Director, Houston Parks Board, 2001 Kirby Drive, #814, Houston, Texas 77019; fax: 713-942-7664; http://www.houstonparksboard.org.

ED TO HIRE AN AIR QUALITY OUTREACH COORDINATOR

Environmental Defense seeks an outreach coordinator to be an integral member of its regional air quality team, working in a multi-disciplinary setting to formulate and implement outreach strategies to promote the adoption of further measures to reduce air pollution in the Houston area. We seek to gain the support of civic, business, and other influential groups to promote emissions reductions from key sources in Houston: diesel vehicles and equipment (initially school buses, construction equipment, and idling trucks); industrial 'upsets'; and gasoline cars and trucks. For a full job description, please contact Elaine Smith at elainesmith@environmentaldefense.org, or go to
http://www.environmentaldefense.org/aboutus.cfm?subnav=jobs.

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