European Stars and Stripes (Newspaper) - November 18, 1990, Darmstadt, Hesse                                Page 14 a the stars and stripes sunday november 18,1990 business new crisis Likely to sap saudi Windfall by Martin Marius Riyadh saudi Arabia api a saudi Arabia is reaping a must billion Dollar Windfall As Oil prices and production shoot up because of iraqis invasion of Kuwait. But it s the kind of Bonanza it would rather do without Ito Owji Uit i4 foreign forces deployed \ senior saudi officials said that in the next few months All the new Oil revenues will Likely be eaten up by the increased expenses although they pointed to a mini Boom for private companies supplying the troops. The kingdom anticipated running an $8 billion budget deficit this year and the officials who spoke on condition of anonymity said they saw no reason to change that estimate. The officials were reluctant to make Long term predictions saying that without knowing the outcome of the persian Gulf crisis they could make no firm estimates. They deplored Iraa a invasion of Kuwait and said the extra Oil income could not compensate for the economic uncertainty and regional upheaval the invasion caused. Saudi Arabia is spending billions of dollars to expand its military and is considering spending billions More to increase Oil production capacity. If Oil prices stay at the current level of $32 a barrel or so the kingdom should have Little trouble footing those Bills and indeed could earn huge surpluses starting next year. But that a a big  in the event of a peaceful iraqi withdrawal from Kuwait some Oil analysts foresee an Oil glut within weeks with open failing to bring production under control. That would drive prices Down and Cut the kingdoms revenues Back to previous Levels a without eliminating the need for the new spending since the iraqi threat to the kingdom would not vanish. If War Breaks out few doubt that Oil prices would rocket a at least initially. But where they would head after that would depend heavily on the outcome of the hostilities. Saudi Arabia has Long had a policy of backing relatively Low Oil prices believing this is the Best Way to maximize Long term revenues from its proven reserves of 255 billion barrels. The saudis reason that higher Oil prices in the Long term would Likely mean a worldwide switch to other sources of Energy and could also drive the world into economic recession. The aug. 2 invasion of Kuwait has already shaken business Confidence in the kingdom itself. Some contractors have postponed building projects and investment is being scaled Down especially when foreign companies were involved. In the immediate aftermath of the invasion saudis transferred millions of dollars into accounts overseas. But the kingdoms Banks were Able to weather the crunch with relative  Page 13 kept open while a service member is in saudi Arabia Wise said. But withdrawals from savings accounts wont b6 possible. Quot if service members have Only a savings account they will not have Access to their Money. They Are being advised to open checking accounts before deploying a Wise said. Withdrawals from savings accounts wont be possible because that can Only be accomplished by presenting a withdrawal slip to a Bank Teller or by using an automated Teller machine Wise said. Neither option is available in saudi Arabia. One solution to the problem would be for service members to authorize direct Deposit of their monthly pay to a merchants Bank savings account and then set up a special allotment that would Transfer a set amount of Cash to a checking account each month. That Way a persons Money would be accessible by simply writing a Check. Wise and other banking officials Are also suggesting that married service members make sure checking accounts Are joint accounts before deploying. A joint account allows spouses to pay Bills and make purchases by Check while the service member is gone. If a joint account is not possible for some reason a Power of attorney can be arranged to Grant someone the right to handle banking and other financial matters for a set period of time. Customers can also set up automatic Bill payments through the Bank to landlords Utility companies and other creditors. The Bills will be paid on a monthly basis Wise said. Service members who want to make changes in their Bank accounts but who done to have a Chance to meet with a merchants officer before being sent to saudi Arabia can take care of some requests by letter Wise said. For example merchants will Honor letters that service members write to the Bank or to their spouse authorizing the withdrawal of a certain amount of Money from an account Wise said. Letters must be state the amount of Money to be released and the account number in question. She described this provision As a last Chance Way to take care of service members who Are a yanked up and put on a plane on very Short notice. Letters can be left with rear detachment commanders for delivery to the Bank Wise said since then some of the Money has co business Confidence has been boosted l a it a ploy ment of a Large  multinational fend the kingdom. Force to j some sectors show signs of a Boom such ers who provide food to thousands of Arak l about $3.50 a meal and of course the Oil indent before the crisis Oil production was about 52? barrels a Day with exports Selling at about t i7 now the saudis Are producing 8.2 million Barret with current Market prices around $32 a barrel airlines doing the Little things to save Jet fuel by Martha m. Hamilton the Washington Post hard hit by sky High fuel prices airlines Are re Row ashtrays from planes getting rid of extra pillows using every other trick they can think of to deem weight and save on fuel. Jet fuel typically represents an airlines second a est Cost behind labor and is now Selling at 75 Pem above its Midsummer Levels. That combined with soul Gish demand for air travel is expected to create m than $1 billion in losses for the Industry this year As a result most airlines have accelerated the i Chase of newer More fuel efficient aircraft and e barked on a search for any other Means of making the selves leaner and lighter. A a we re looking at limiting flying in certain areas citing Back on the frequency of flights and putting 17 our less fuel efficient aircraft on the ground a said i Kent of Continental airlines. In addition since amp prohibitions on smoking on most Domestic flights hat made ashtrays useless the Houston based airline is n moving them. That can take 50 pounds off a Boeing Kent said. Virtually All of the airlines have taken such Steps taxiing on one engine and encouraging pilots to Fly altitudes that minimize the amount of fuel used. Amei can airlines and us air say they also Benefit from in fact that their aircraft Are unpainted. Paint can add 3 proximately 400 pounds to a big Jet like a dc-10, Ai cording to american airlines spokesman Tim Sumii us air estimates that not painting aircraft saves the Rier at least 794,000 Gallons of Jet fuel a year Peoples and places of the past by a. ,."j v a and stripes bookstores stars and stripes bookstores another stars and stripes user aver you it fan fount on \ \ v a a a a co stars november discounted our Ari gripes super Saver selections for of $49.95 for Thise Citina Letl a c0v9r Price you la save $20 off the regular pries our Earth. Peoples amp places of Fhy p a a Anae 1t cd ures and civilizations that have inhabited shopping Center Bookstore Quot a Lable or Only a a stars and stripes Omed Nohale Volanta and Horn Cude Chris mos in America children s stories on playing chess great chefs of Europe i Quot Oahu a of bwe pictures a Home study course user savers today More. 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