MOSCOW – The sinking of a floating oil rig that left more than 50 crew dead or missing is intensifying fears that Russian companies searching for oil in remote areas are unprepared for emergencies — and could cause a disastrous spill in the pristine waters of the Arctic.
Only four months ago, Russian energy giant Gazprom sent Russia's first oil platform to the environmentally sensitive region, and industry experts and environmentalists warned it is unfit for the harsh conditions and is too far from rescue crews to be reached quickly in case of an accident. They are demanding Russia put Arctic oil projects on hold.
Russia is the world's largest oil producer, but it extracts most of its oil onshore, with no more than 2 percent of its production coming from mature offshore fields in the warm Black and Caspian seas and relatively new fields just off Sakhalin Island in the far east.
As Russia's core oil fields in Eastern Siberia are depleted, companies are looking north. The government hopes that up to 80 million tons of oil will be produced annually in the Arctic by 2030.
Russia is trying to assert jurisdiction over parts of the Arctic, which is believed to hold up to a quarter of the Earth's undiscovered oil and gas. By speeding up the Arctic oil project, the government is strengthening its bid.
The Kolskaya floating oil rig that capsized and sank in the Sea of Okhotsk on Dec. 18 had done exploratory drilling for Gazprom Neft Shelf, a subsidiary of Gazprom. It was being towed back to an eastern Russian port in a fierce storm when a strong wave broke some of its equipment and portholes, and it capsized in the choppy water.
Gazprom is now pioneering the oil development of Russia's sector of the Arctic and was the first Russian company to dispatch a drilling rig to the Pechora Sea in northwest Russia.
Russian oil companies have never operated in weather conditions as harsh as those found in the ice-bound Arctic, where ice ridges are meters (yards) deep and storms are frequent. The Kolskaya accident has reinforced fears that they are unprepared to meet the challenges.
"This tragedy has once again reminded us of how high the risks of offshore accidents are," said Alexei Knizhnikov, an oil and gas policy officer with the World Wildlife Fund.
WWF, Greenpeace and five regional Russian environmental organizations signed a petition on Thursday calling for a parliamentary investigation and urging the government to suspend the oil projects for now.
The petition accuses government agencies of failing to enforce environmental and safety regulations and says that current laws are inadequate for dealing with the magnitude of risk in the Arctic.
Environmentalists first raised their concerns when Gazprom announced in August that it was sending its platform to the Arctic for exploratory drilling in the Pechora oil field, which holds some 6.6 million tons of oil.
The platform's underwater section was built in Russia in the 1990s, while its upper part comes from a platform built in Scotland in 1982 and decommissioned from the North Sea in 2002.
Gazprom insists the Prirazlomnaya platform, billed as the first to be ice resistant, is safe and contains no old equipment except for its frame.
"We've done our best to implement the latest technology and regulations to prevent any accidents," Vladimir Vovk, chief of Gazprom's department for the management of equipment and technologies in developing marine fields, said at a news conference in September.
Environmentalists question both the state of the equipment and the platform's design. Because the Prirazlomnaya is situated hundreds of kilometers (miles) offshore, it is designed to store huge quantities of oil until tankers can arrive to collect it. The platform's storage tanks can hold up to 120,000 tons (840,000 barrels).
Unlike the Kolskaya, which was carrying no oil when it sank, the Arctic platform could potentially cause a disastrous spill if it capsized in icy, rough seas.
The distance from shore would also complicate any rescue or cleanup mission. The nearest port of any size is in Murmansk, some 1,000 kilometers (600 miles) away.

Even in warmer, more hospitable waters, accidents at oil platforms have been disastrous.

A giant oil slick was approaching the coast of Nigeria on Friday after what Royal Dutch Shell said was a spill during the transfer of oil from its floating platform in the offshore field to a waiting tanker. The spill came less than a week after Shell received approval from the U.S. government to drill exploratory wells off Alaska's northwest coast, in the Chukchi Sea near Russian waters.

In the Gulf of Mexico, the 2010 explosion of the BP-operated Deepwater Horizon rig killed 11 workers and led to more than 200 million gallons (4.8 million barrels) of oil spewing from a well deep beneath the sea.

Russia's parliament gave preliminary approval in September to a bill intended to tighten regulations on oil companies working in the Arctic.

Yekaterina Khmelyova, an environment law officer at the WWF, said the bill does not do enough to hold the oil companies publicly accountable or to guarantee a full assessment of the environmental risks. She said environmentalists and the business community are working on a new draft that among other things would provide for the creation of clean-up funds.

Oil industry experts also have expressed doubts about Gazprom's expertise in offshore drilling in the Arctic as well as the platform's design.

They have questioned the economic justifications for the project. The oil in the Pechora field is of low quality and the project will be loss-making without tax breaks, said Valery Nesterov, a senior analyst with the Moscow-based investment bank Troika Dialog. For state-controlled Gazprom, the Arctic project appears to be more of strategic importance than about any immediate economic benefits, he said.

"This is clearly a strategic task that the company is executing," Nesterov said. "It looks like Russia is not going to give up that strategy since the interests of ship yards, machinery producers and, possibly, the military are involved."

Four years ago, Russia staked its claim to supremacy in the Arctic by planting a titanium flag on the ocean floor and arguing that an underwater ridge connected the country directly to the North Pole. The United States does not recognize the Russian assertion and has its own claims, along with Denmark, Norway and Canada.

Russia, Canada and Denmark are planning to their respective file claims to the ridge to the United Nations.

In past years, Russian ship yards and machinery producers have been able to stay afloat largely thanks to large orders coming from state-owned plants and government-sponsored projects. A large-scale oil and gas development of the Arctic is likely to give a welcome boost to both industries.

WASHINGTON (Reuters) – A direct-mail solicitation for Ron Paul's political and investment newsletters two decades ago warned of a "coming race war in our big cities" and of a "federal-homosexual cover-up" to play down the impact of AIDS.

The eight-page letter, which appears to carry Paul's signature at the end, also warns that the U.S. government's redesign of currency to include different colors - a move aimed at thwarting counterfeiters - actually was part of a plot to allow the government to track Americans using the "new money."

The letter urges readers to subscribe to Paul's newsletters so that he could "tell you how you can save yourself and your family" from an overbearing government.

The letter's details emerge at a time when Paul, now a contender for the Republican nomination for president, is under fire over reports that his newsletters contained racist, anti-homosexual and anti-Israel rants.

Reports of the newsletters' contents have Paul's campaign scrambling to deny that he wrote the inflammatory articles.

Among other things, the articles called the Rev. Martin Luther King Jr. a "world-class philanderer," criticized the U.S. holiday bearing King's name as "Hate Whitey Day," and said that AIDS sufferers "enjoy the attention and pity that comes with being sick."

As Paul made a campaign stop in Manchester, Iowa, on Thursday, his Iowa chairman, Drew Ivers, repeated Paul's assertions that he did not write the articles that resurfaced this week in a report in the Weekly Standard magazine.

Paul has said that he is not sure who wrote the articles that were published under his name. He has said the articles do not reflect his views, and noted that his public stances - supporting gays in the military for example - have run counter to the incendiary statements in the newsletters.

In an interview with CNN's Gloria Borger on Wednesday, Paul said of the newsletter's articles: "I didn't write them. I didn't read them at the time and I disavow them."

When Borger continued to pursue the subject, Paul removed his microphone and walked out of the interview.

"It is ridiculous to imply that Ron Paul is a bigot, racist, or unethical," Ivers said.

However, Ivers said, Paul does not deny or retract material that Paul has written under his own signature, such as the letter promoting Paul's newsletters.

When asked whether that meant Paul believed there was a government conspiracy to cover up the impact of AIDS, Ivers said, "I don't think he embraces that."

Paul's newsletters "showed good factual information and investment information," Ivers said. "It was a public service, helping people understand and equip them to avoid an unsound monetary policy."

"EXTRAORDINARY SOURCES"

The letter promoting Paul's newsletters was written about 1993. It was during a period in which Paul - who left Congress in 1985 after serving about eight years - returned to Washington after a decade's absence.

(For a PDF of the solicitation letter see http://link.reuters.com/vud75s)

The letter was provided to Reuters by James Kirchick, a contributing editor for The New Republic magazine. He says he found the letter in archives of political literature maintained by the University of Kansas and the Wisconsin Historical Society.


Early in the 2008 presidential campaign - in which Paul was a candidate - Kirchick published an article in The New Republic in which he described Paul as "not the plain-speaking antiwar activist his supporters believe they are backing - but rather a member in good standing of some of the oldest and ugliest traditions in American politics."


The letter promoting Paul's newsletters claims that Paul - through what he describes as a network of "extraordinary sources" in Congress, the White House, the Treasury and Justice departments, the Federal Reserve and the Internal Revenue Service - had acquired unique insider information that would his subscribers to "neutralize" the plans of "powerbrokers."


Paul's letter went on to describe various plots and schemes that he had "unmasked," including a "plot for world government, world money and world central banking." He also claimed to have exposed a plan by the Federal Emergency Management Agency (FEMA) to "suspend the Constitution" in a falsely declared national emergency.


Despite being "told not to talk," Paul wrote that his newsletters also "laid bare" the "Israeli lobby, which plays Congress like a cheap harmonica," and a "federal-homosexual cover-up on AIDS."


Paul claimed that his "training as a physician" helped him "see through" this alleged cover-up.


Paul also suggested that a planned U.S. currency with new notes designed to curb counterfeiting and money laundering would result in the distribution of "totalitarian bills" that "were tinted pink and blue and brown, and blighted with holograms, diffraction gratings, metal and plastic threads and chemical alarms."


Paul said the money was designed to allow authorities to "keep track of American cash and American citizens."


He urged the letter's readers to send in $99, which would buy subscriptions to his monthly political and investment newsletters, a copy of his book "Surviving the New Money," an investment manual and access to the "unlisted phone number of my Financial Hotline for fast breaking news."


(Additional reporting by Samuel P. Jacobs in Manchester, Iowa; Editing by David Lindsey and Eric Walsh)

MANILA (Reuters) – The Philippines disaster agency said Friday more than 1,000 people were missing from a storm and flash floods last week, sharply raising the number of victims unaccounted for as the true extent of the disaster became known.

Typhoon Washi and the flash floods it caused on the southern island of Mindanao are known to have killed 1,080 people, the national disaster agency said.

The agency said Thursday dozens of people were missing but Friday it revised that figure to more than 1,000, saying more complete data had come in and people were reporting the disappearance of relatives.

Most of the casualties were in the cities of Cagayan de Oro and Iligan, where hundreds of thousands of people were displaced. Many of them are sheltering in schools, churches, gymnasiums and an army base.

Benito Ramos, head of the national disaster agency, said authorities had expanded the search in light of the new tally of missing and because some bodies had been found on shores nearly 100 km (60 miles) from the disaster area.

"We've deployed helicopters to help navy ships scour the seas further away," Ramos told reporters.

The number of missing was put at 1,079, he said.

The disaster had caused damage of 1 billion pesos ($22.92 million) to highways, bridges, schools and other infrastructure, the agency said.

The agriculture department estimated 310.2 million pesos worth of crops, including 703 metric tons of unmilled rice and 7,751 metric tons of corn were destroyed.

Ramos said the situation for survivors was slowly getting back to normal though the displaced needed sustained help.

Two navy ships and aircraft from the main island of Luzon had been deployed to help in the search and relief operations, he said.

"We're not taking any Christmas break," Ramos said.

Some families have moved home and are trying to pick up their pieces of their lives.

"We only need something on top of our heads this Christmas," villager Teresita Bragas told a television station, as she and some neighbors tried to rebuild amid mounds of logs and debris in their coastal village.

Aid agencies have appealed for $28.6 million aid to ease overcrowding at shelter areas.

($1 = 43.6350 pesos)

(Reporting By Manuel Mogato; Editing by Robert Birsel)

LOS ANGELES – Southern California quarterback Matt Barkley believed he was prepared to play in the NFL and the draft prognosticators agreed with him.
He had skillfully guided the program through two years of NCAA sanctions, put up big numbers to add his name to the list of great Trojans quarterbacks.
Barkley just wasn't ready to leave. He still had some unfinished business at USC.
Setting off a round of cheers at USC's Heritage Hall, Barkley announced Thursday that he's returning for his senior season, putting off the NFL for a chance to lead the Trojans from under the cloud of NCAA sanctions to a BCS bowl.
"I am staying so I can finish what I started," Barkley said.
At 6-foot-2, 220 pounds and with a game that matured over three years at Troy, Barkley was projected as a high first-round pick in the NFL draft, an enticement that had lured his predecessor, Mark Sanchez, after his junior season.
Instead of following Sanchez's footsteps, Barkley took the route of former USC quarterback Matt Leinart and Stanford's Andrew Luck.
Leinart returned to USC after winning the Heisman Trophy and a national championship, and led the Trojans to the 2005 BCS title game, where they lost to Texas. Luck came back this season after being the Heisman runner-up last year and took the Cardinal to the Fiesta Bowl while finishing second to Baylor's Robert Griffin III in this year's Heisman voting.
Like those two, Barkley felt as though he still had goals he wanted to accomplish after leading the Trojans to a 10-2 record and a No. 5 ranking in The Associated Press poll.
Barkley let USC coach Lane Kiffin know about his decision with a Christmas ornament that had a picture of the two together during this season's game against Colorado on one side and the words "One More Year" on the back. His announcement Thursday in front of about 200 people, including his family and Kiffin, set off a wave of applause and a quick burst from USC's band as a pair of cheerleaders danced along.
"That's not an easy decision," Kiffin said. "Not many people would do what Matt has done."
Barkley is the latest in a heralded lineup of USC quarterbacks that includes Carson Palmer, Leinart and Sanchez.
He had an uneven first season with the Trojans, making some questionable decisions that led to 14 interceptions. Still, Barkley threw for over 2,700 yards and 15 touchdowns to become the only freshman semifinalist for the Davey O'Brien Award as the nation's best quarterback.
Barkley developed into a mature leader by his sophomore season, again throwing for over 2,700 yards, with 26 TDs, a completion rate of 62 percent and 12 interceptions. He also handled questions about USC's sanctions with poise, never shying away from talking about the program's difficulties.
As a junior, he developed into one of the country's best quarterbacks, throwing for 3,528 yards and 39 touchdowns with only seven interceptions on a team that was one of the best in the country the last half of the season. The Trojans won seven of their final eight games, though they had to endure a second straight bowl-less season thanks to postseason sanctions that end next season.
USC left tackle Matt Kalil declared for the NFL draft last week, but on Wednesday safety T.J. McDonald said he was returning for his senior year. Now with Barkley, the Trojans are loaded and likely one of the front-runners to win next year's national title.
Barkley also will enter next season as the leading contender for the Heisman Trophy — much the way Luck did when he made a similar decision after the 2010 season — and can firm up his place as one of the best quarterbacks in the history of a program filled with great ones.
"I think looking at the team that we have there is that chance," Barkley said of playing in a BCS game next season. "We're on the rise and like I said in my (opening) statements, I feel like there is unfinished business."

____

John Marshall reported from Phoenix.

WASHINGTON – Consumers spent at a lackluster rate in November as their incomes barely grew, suggesting that U.S. households may struggle to sustain their spending into 2012.
The Commerce Department says consumer spending rose just 0.1 percent in November, matching the modest October increase. Incomes also rose 0.1 percent. That was the weakest showing since a 0.1 percent decline in August.
Both the spending and income gains fell below expectations. Economists have said that solid increases in spending could boost economic growth in the final three months of what has been a disappointing year.
While the economy remains vulnerable to threats, particularly a recession in Europe, the job market has improved, lifting hopes for next year.
The government said this week that applications for unemployment benefits fell by 4,000 last week to 364,000. It was the third straight weekly drop. And it pushed applications to the lowest level since April 2008, in the midst of the Great Recession.
The holiday shopping season is ending up better than expected. As a result, many economists are revising up their growth forecasts.
Analysts at JPMorgan think the economy is growing at an annual rate of 3.5 percent in the current October-December quarter. That would be up from 1.8 percent growth in the July-September quarter and would be the best quarterly gain since the spring of 2010.
Economists still expect that growth to be driven by an improvement in consumer spending, which accounts for 70 percent of economic activity. Spending rose at a 1.7 percent rate in the third quarter, more than double the second-quarter gain. JPMorgan analysts expect consumer spending to grow at a 3 percent pace in the current quarter.
Even with the spurt of activity at the end of the year, economists think growth for all of 2011 will be a lackluster 1.7 percent.
They had much higher expectations when the year began. But then a spike in gasoline prices held back consumer spending for other items. And the earthquake in Japan disrupted supply chains for auto and electronic parts, dampening factory production in the United States.
Many analysts do not expect growth in 2012 to be significantly better than in 2011. JPMorgan economists predict the economy will expand 1.9 percent in 2012, only slightly better than this year.