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Bush-Abdullah Meeting; Spoiled by Oil?; Heroin Indictment

Aired April 25, 2005 - 10:59   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


DARYN KAGAN, CNN ANCHOR: Let's take a look at what's happening right "Now in the News."
Federal authorities announced the indictment of an alleged heroin trafficker with suspected terrorist ties. Haji Bashir Noorzai is in U.S. custody and is expected to be arraigned this afternoon. Details in a live report in about 15 minutes.

Here in the U.S., the search resumes this morning for two missing toddlers in Georgia. The mother says they disappeared from their home Saturday in Warrenton, Georgia, about 40 miles from Augusta. A news conference we were just watching a couple of minutes ago, officials said they have no new leads in the disappearance of 2-year-old Nicole Payne and her brother, 3-year-old Jonah.

Authorities say two Iraqi civilians were wounded by a suicide car bombing today. It happened in Ramadi about 60 miles west of Baghdad. The U.S. military says this was the third attempted suicide attack in Ramadi in the past five days.

Secretary of State Condoleezza Rice begins a trip to Latin America today. She'll visit four countries in South and Central America over the next four days. Rice plans to continue her pro- democracy message, but she'll also stress the need to fight poverty in Latin America.

We are looking at the top of the hour, 11:00 a.m. on the East Coast. 8:00 a.m. for those of you in the West. Good morning once again from the CNN Center in Atlanta. I'm Daryn Kagan.

First, on to high gas prices. The world's largest oil consumer meets the world's largest producer. Put that into translation, President Bush welcoming the Saudi Crown Prince to his Texas ranch this hour.

Our White House correspondent Suzanne Malveaux joins me from Crawford, Texas.

Good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Daryn.

It's going to take place within the hour or so. It is three years to the date that they last met at the Crawford ranch.

This is their second time meeting here. And, of course, that is significant, because no other foreign leader has met twice with the president at his Crawford home. It really underscores the importance of the relationship between the two leaders, as well as our countries.

Now, of course top of the list in the president's agenda is gas prices, those rising gas prices in oil production. Senior administration officials telling us that the president will sit down with Abdullah and ask him to boost Saudi's oil production, that he basically wants to look for a straight answer of whether or not Saudi Arabia is producing at their highest capacity.

He will lay out, make the case that increasing oil prices hurt the international economy all around. But it is questionable whether or not the Saudis are really going to make any kind of commitment today. They have already announced that they will at least boost production in the long term over the next four years. But, Daryn, what's important to note here is that this has become a growing political problem for President Bush.

Several senior administration officials acknowledging that, yes, if you take a look at the polls, the president has taken a dip when it comes to his job approval rating. He's been trying to push forward a Congress and energy bill that has languished over the last four years.

And if you look at the summer, the peak in which the gas prices will go up, about in May, that is the time when people will be hitting the roads, summer driving time. It is also the same time that the president is going to look to Congress to try to pass or at least take a serious look at some of his other legislative items, particularly reforming Social Security.

So President Bush, very important for him to show the American people that at least he's trying to do something to address this problem -- Daryn.

KAGAN: Well, and then looking at it from the Saudis point of view, we know what President Bush will ask of the Saudis. What are they looking to get out of this meeting today?

MALVEAUX: And certainly, of course, Crown Prince Abdullah is looking to get something as well. He is trying, his country is trying to become a member of the World Trade Organization. Very important.

They've aggressively been pitching for this. They need the United States' cooperation. They are working on a bilateral deal. It's said to be fairly close here, but what the Saudis have to do is at least prove that they're cutting their tariffs, and also that they're improve their human rights record.

But that is something that the Crown Prince want to go back to his own country, to his own people, and say, look, we are moving forward on that, I am making my case for my country. So it looks like it could be a win-win situation for both leaders.

But Daryn, I should let you know as well, neither one of them are going to be talking after they meet for their meeting and for lunch. The Saudi Crown Prince does not like to speak to the media. So we don't expect to see either one of them today. We will probably get a background briefing, a reading, perhaps, on what has taken place -- Daryn.

KAGAN: All right. Well, we will look forward to whatever you can get out of Crawford, Texas. Suzanne, thank you.

Well, because the consumer -- the American consumer is addicted to oil, what the Saudis charge directly affects the U.S. economy, and eventually your wallet. Our financial correspondent Chris Huntington is in New York this morning looking at gas prices.

Good morning.

CHRIS HUNTINGTON, CNN FINANCIAL CORRESPONDENT: Daryn, thanks a lot.

Well, as you may have noticed, gas prices have come down in the last week. But get ready for them to go back up.

There's generally about a 10-day to two-week time lag between what you see at the pumps and what's happening in the crude oil futures market. And oil is up sharply again, up around $55, close to $56 a barrel in current trading right now. So you will see gasoline prices rise in the weeks to come.

The attitude in the energy markets is somewhat cynical about how much more influence Saudi Arabia can have about bringing down crude prices. As Suzanne alluded to there, the Saudis are already pretty much pumping at capacity right now. They have talked about raising that ability to pump more.

Indeed, they have made a promise to increase their spending on their oil infrastructure to raise capacity over the years to come. But frankly, the world crude market needs it and needs it right now. And Saudi is pretty much doing all it can.

Now, with regard to the United States, let's take a look at the latest figures from the Department of Energy on just how much oil we get from Saudi Arabia. These are in millions of barrels per day. And to put this in perspective, the United States uses about 20 million barrels a day.

We import about 10 million. So there you can see, of the 10 million barrels that we import every day, we get about 1.5 from Saudi Arabia, and so on down the line. What's interesting, though, and I think a lot of people are not aware of, is that we are getting roughly the same amount of crude oil from Canada and Mexico as we get from Saudi Arabia.

Now take a look at the total crude oil production figures for the world. Current crude production right now about 84 million barrels a day, OPEC close to 30 million of that. And as you can see, Saudi Arabia a little more than nine. Some people are saying Saudi is probably close to 10 now.

Saudi says it can go to about 11 in the near term, maybe upwards of 12, 13 in a couple years out. But overall, the point that I'm trying to make here, Daryn, is that Saudi Arabia's percentage of oil production in the world is smaller than a lot of people think.

Nonetheless, Saudi Arabia still the single biggest producer and exporter of crude. So it still has a fair bit of influence in the market. But basically, the point, Daryn, is that it is pumping at capacity and it is pretty much exerting all of the influence it can, at least in terms of fundamental supply, into the marketplace right now.

KAGAN: But the direct message to your wallet, enjoy these slightly lower prices at the gas pump for now because they will be going up very soon.

HUNTINGTON: Most likely.

KAGAN: Thank you, Chris.

HUNTINGTON: Yes.

KAGAN: Well, experts say that a terrorist attack on Saudi oil facilities could push prices over -- get this -- over $100 a barrel. And that raises the question, how secure are those production facilities? We asked our senior international correspondent Nic Robertson to find out.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): If Saudi Arabia's life blood is oil, this is its heart, Ras Tanura, the world's largest oil refinery and the country's principal oil export facility. We saw fortified defenses, but not enough to satisfy former CIA officer Bob Baer.

ROBERT BAER, FMR. CIA OFFICER: I could sit down now with my training in the CIA and people I know and do a concerted military attack on Saudi facilities, standoff attacks with rockets, and take five, six million barrels off the market.

ROBERTSON: So could a plane packed with explosives if it crashed into Ras Tanura, a 9/11-style scenario that Baer says is also possible. The last of more than one half the desert kingdom's normal production would turn disaster here into a global economic nightmare.

ADRIAN BINKS, PETROLEUM ARGUS: If a major facility was knocked out, such as the Ras Tanura export facility, and it looked like it would be out for many months, then the market would be absolutely frenzied and prices would rise through the sky almost.

ROBERTSON: At a high-tech control room, Saudi engineers say they plan for that possibility.

ABDALLAH JUMAH, ARAMCO: We always have drills about "what ifs," and, therefore, a -- even a terrorist incident, if it were to happen, it's not going to be worse than an industrial incident in a volatile industry like ours. ROBERTSON: Indeed, on a recent tour of Ras Tanura, where oil is not only refined but shipped out to the rest of the world, Saudi officials were keen to show off the safety features of the facilities.

(on camera): What you realize out of these oil-loading terminals, if terrorists were to strike against the Saudi oil infrastructure, it would have little effect. The system is spread out over a vast area.

(voice-over): But in a volatile market already jittery about terrorist attacks at Saudi oil installations, even a minor attack would rattle the global economy, the sort of pipeline attacks that are already common occurrence in Iraq.

BINKS: The most likely scenario, which would by an attack on a pipeline in Saudi Arabia, then prices would spike for a very short time.

ROBERTSON: So far, Saudi al Qaeda has killed and mutilated western oil workers on at least two occasions, but has not yet targeted oil installations. The fear is that tactic could change.

BAER: These people are perfectly capable if they got some sort of victory in Iraq of turning south and going after the Saudi royal family and going after the facilities. I've got no doubt about that.

ROBERTSON: With internal tensions from rising unemployment, a booming birth rate and struggling economy, the Saudi royals carry the burden of protecting not only their oil fields, but also the world's economy.

Nic Robertson, CNN, Ras Tanura, Saudi Arabia.

(END VIDEOTAPE)

KAGAN: Well, let's go ahead and bring it home here and check the price of some of the gas prices around the country right now.

They're actually down for the first time in a couple of weeks. According to the Lundberg survey, prices falling more than four cents a gallon over the past two weeks.

The average price for self-service regular, $2.24 a gallon. The highest price in the survey in San Francisco, $2.64 a gallon. And the lowest, in Tulsa, Oklahoma. You want to pull in there, you only pay $2.04.

Well, some folks are trying to eat less. Coming up next, we're going to tell you how to eat some of the best foods around the world.

And finally, could a wedding march be the music that Elton John wants to hear?

(COMMERCIAL BREAK)

(STOCK MARKET REPORT) (COMMERCIAL BREAK)

KAGAN: Within the last hour, federal authorities announced the indictment of an alleged heroin kingpin with suspected ties to the Taliban. Deborah Feyerick is in New York with details in our CNN "Security Watch."

Deb, good morning.

DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning, Daryn.

Well, his name is Haji Bashir Noorzai. And drug enforcement officials tell CNN that he was arrested in New York on Saturday. He was traveling to New York when he was taken into custody.

Now he is expected to go before a federal judge to be arraigned sometime this afternoon, perhaps as early as 2:00. The head of the Drug Enforcement Agency described this arrest as "arresting the Pablo Escobar of Asia." That is the level that they are saying this man reached.

He is being charged with massive narcotics conspiracy. And according to the indictment, Noorzai is charged with providing demolitions, weaponry and manpower to the Taliban. And then in exchange for that, support the Taliban provided the Noorzai organization with protection for its opium crops, its heroin laboratories, as well as drug transportation routes.

Now, the U.S. attorney here in New York, David Kelley, earlier today gave this statement.

(BEGIN VIDEO CLIP)

DAVID KELLEY, U.S. ATTORNEY: On June 1, 2004, President Bush identified Bashir Noorzai as one of the world's most wanted drug kingpins. We are here this morning to announce the arrest of Noorzai, who is perhaps the most notorious Afghan drug lord and has built over the last 15 years a multimillion-dollar heroin business by forging an unholy alliance with Mullah Mohammed Omar and the Taliban.

This morning, we unsealed the two-count indictment charging Noorzai with conspiring to import into the United States and to possess with intent to distribute more than 500 kilograms of Afghan heroin worth more than $50 million.

(END VIDEO CLIP)

FEYERICK: Now, according to the House International Relations Committee, they say that Noorzai is believed to smuggle as much as 4,400 pounds of heroin almost eight weeks out of Afghanistan and into Pakistan. Now, the DEA says, "Today's arrest of heroin warlord Bashir Noorzai is a resounding victory for both Afghan and American citizens, and also seeks to stabilize the heroin trade" -- Daryn.

KAGAN: Deborah Feyerick, live from New York City. Deborah, thank you. The Department of Homeland Security is focusing attention at protecting the nation's railways. The mayor of New York says no city relies on mass transit more than his does.

(BEGIN VIDEO CLIP)

MAYOR MICHAEL BLOOMBERG (R), NEW YORK CITY: What I've always argued is simply good common sense. Homeland security funding should be based on risk and risk alone. And the bulk of the funding should go to cities like New York, that face the gravest threat of attack.

Instead, this bill, which is sponsored by Senator Susan Collins of Maine, would raise substantially the minimum homeland security grants going to all the states by 25 percent. And that includes states that are not on any high-risk target list by anybody's definition.

(END VIDEO CLIP)

KAGAN: Homeland Security Secretary Michael Chertoff toured New York's Grand Central Terminal, along with other officials earlier today.

CNN's "Security Watch" keeps you up to date on safety. Stay tuned day and night for the most reliable news about your security.

Speaking of trains, investigators in Japan are trying to figure out what caused the country's deadliest rail accident in more than 40 years. At least 50 people were killed, more than 300 were injured when a commuter train derailed during rush hour this morning.

Rescue crews used cutting tools to reach survivors trapped in the mangled wreckage. A witness described the scene after the train went off the tracks and crashed into an apartment building.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The first train car are totally crushed into the building. And it's -- it looks like so flat. And there are 10 rescue -- well, 10 or more rescue people on the second train car. And I couldn't see anything from here about the first train car.

(END VIDEO CLIP)

KAGAN: The train hit several cars, but it's not clear whether that was or after it derailed.

Let's take a look at other stories making news overseas in this morning's "World Wrap."

The withdrawal of Syrian troops from Lebanon is almost complete. A small contingent of troops stayed behind for a farewell ceremony tomorrow. The pullout marks the end of Syria's 29-year military presence in Lebanon.

Russian president, Vladimir Putin, says the country will continue on the path to freedom and democracy. But he says Russia must protect its values and find its own road to democracy. Mr. Putin also addressed economic concerns in his sixth annual state of the nation speech. That took place today.

Could it be wedding bells for Elton John? The pop star says he intends to marry his long-time partner, David Furnish. He tells the British tabloid, "The Mirror," he wants to hold a civil partnership ceremony perhaps in December. His publisher says the ceremony could also take place sometime next year.

We're taking you to the exciting and beautiful world of fashion after the break. You're going to meet some new models taking the fashion world by storm.

And it's been spring for a month, but winter will not let go. Your weather forecast is just ahead.

(COMMERCIAL BREAK)

KAGAN: Well, if any of you out there are missing winter, we have found it for you. Parts of the Midwest got hit with two feet of spring snow this weekend. The snowy snap took the swing right out of baseball. The Detroit Tigers had to cancel two home games.

One Michigander summed it up. "Last week in shorts and tank tops. Now we're stuck inside."

But it's not going to last for long. Rob Marciano here to look at weather and tell us, well, even when it does turn cold this time of year, you know that promise of warm weather is close by.

ROB MARCIANO, CNN METEOROLOGIST: Right. Especially when the tulips are popping up through the snow.

KAGAN: Yes, tulips, snow. Not -- something wrong with that picture.

(WEATHER REPORT)

KAGAN: Just something is wrong when the folks in D.C. and New York are about 10 to 13 degrees warmer than us. We're supposed to brag this time of year that we have the better weather.

MARCIANO: Well, I'm sure we'll have warmer weather soon, though.

KAGAN: Yes, well you work on that. Thank you, Rob.

MARCIANO: See you.

KAGAN: Speaking of heating up, there is a major political battle that is brewing in Washington. It could have far-reaching implications. At issue, faith, filibusters and the future of judicial nominees. Details on that just ahead.

(COMMERCIAL BREAK) KAGAN: We are coming up on the half-hour. Good morning once again. I'm Daryn Kagan. Here's a look what's happening "Now in the News."

The search resumes this morning for two missing toddlers in Georgia. Their mother says they disappeared from their home Saturday in Warrenton, Georgia, about 50 miles from Augusta. In a news conference you saw live here during the last hour, officials said they have no new leads on the disappearance of 2-year-old Nicole Payne or her brother, 3-year-old Jonah.

The crime rate is down, and the number of Americans in prison is rising. A Justice Department review finds 2.1 million people are behind bars. Experts attribute the increase to tougher sentencing guidelines and three-strikes-you're-out-type of laws.

General Motors recalling more than two million trucks and SUVs that were made back in 2000. Problems range from faulty seatbelts to fuel pumps that overheat. The models involved include the Suburban, the Tahoe, the Hummer, the Escalade, Yukon, Silverado and Sierra.

When it comes to mid-sized safety, nothing is better than the Jetta. The Insurance Institute rates the redesigned VW tops in side and front-end crashes. In fact, testers say the Jetta is the first vehicle to ace side-impact crashes.

And three space travelers landed on the steps of Kazakhstan earlier today. Two of the men had been orbiting Earth on the International Space Station since October. The third spend eight days on the station.

We're keeping you informed, CNN, the most trusted name in news.

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Aired April 25, 2005 - 10:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Let's take a look at what's happening right "Now in the News."
Federal authorities announced the indictment of an alleged heroin trafficker with suspected terrorist ties. Haji Bashir Noorzai is in U.S. custody and is expected to be arraigned this afternoon. Details in a live report in about 15 minutes.

Here in the U.S., the search resumes this morning for two missing toddlers in Georgia. The mother says they disappeared from their home Saturday in Warrenton, Georgia, about 40 miles from Augusta. A news conference we were just watching a couple of minutes ago, officials said they have no new leads in the disappearance of 2-year-old Nicole Payne and her brother, 3-year-old Jonah.

Authorities say two Iraqi civilians were wounded by a suicide car bombing today. It happened in Ramadi about 60 miles west of Baghdad. The U.S. military says this was the third attempted suicide attack in Ramadi in the past five days.

Secretary of State Condoleezza Rice begins a trip to Latin America today. She'll visit four countries in South and Central America over the next four days. Rice plans to continue her pro- democracy message, but she'll also stress the need to fight poverty in Latin America.

We are looking at the top of the hour, 11:00 a.m. on the East Coast. 8:00 a.m. for those of you in the West. Good morning once again from the CNN Center in Atlanta. I'm Daryn Kagan.

First, on to high gas prices. The world's largest oil consumer meets the world's largest producer. Put that into translation, President Bush welcoming the Saudi Crown Prince to his Texas ranch this hour.

Our White House correspondent Suzanne Malveaux joins me from Crawford, Texas.

Good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Daryn.

It's going to take place within the hour or so. It is three years to the date that they last met at the Crawford ranch.

This is their second time meeting here. And, of course, that is significant, because no other foreign leader has met twice with the president at his Crawford home. It really underscores the importance of the relationship between the two leaders, as well as our countries.

Now, of course top of the list in the president's agenda is gas prices, those rising gas prices in oil production. Senior administration officials telling us that the president will sit down with Abdullah and ask him to boost Saudi's oil production, that he basically wants to look for a straight answer of whether or not Saudi Arabia is producing at their highest capacity.

He will lay out, make the case that increasing oil prices hurt the international economy all around. But it is questionable whether or not the Saudis are really going to make any kind of commitment today. They have already announced that they will at least boost production in the long term over the next four years. But, Daryn, what's important to note here is that this has become a growing political problem for President Bush.

Several senior administration officials acknowledging that, yes, if you take a look at the polls, the president has taken a dip when it comes to his job approval rating. He's been trying to push forward a Congress and energy bill that has languished over the last four years.

And if you look at the summer, the peak in which the gas prices will go up, about in May, that is the time when people will be hitting the roads, summer driving time. It is also the same time that the president is going to look to Congress to try to pass or at least take a serious look at some of his other legislative items, particularly reforming Social Security.

So President Bush, very important for him to show the American people that at least he's trying to do something to address this problem -- Daryn.

KAGAN: Well, and then looking at it from the Saudis point of view, we know what President Bush will ask of the Saudis. What are they looking to get out of this meeting today?

MALVEAUX: And certainly, of course, Crown Prince Abdullah is looking to get something as well. He is trying, his country is trying to become a member of the World Trade Organization. Very important.

They've aggressively been pitching for this. They need the United States' cooperation. They are working on a bilateral deal. It's said to be fairly close here, but what the Saudis have to do is at least prove that they're cutting their tariffs, and also that they're improve their human rights record.

But that is something that the Crown Prince want to go back to his own country, to his own people, and say, look, we are moving forward on that, I am making my case for my country. So it looks like it could be a win-win situation for both leaders.

But Daryn, I should let you know as well, neither one of them are going to be talking after they meet for their meeting and for lunch. The Saudi Crown Prince does not like to speak to the media. So we don't expect to see either one of them today. We will probably get a background briefing, a reading, perhaps, on what has taken place -- Daryn.

KAGAN: All right. Well, we will look forward to whatever you can get out of Crawford, Texas. Suzanne, thank you.

Well, because the consumer -- the American consumer is addicted to oil, what the Saudis charge directly affects the U.S. economy, and eventually your wallet. Our financial correspondent Chris Huntington is in New York this morning looking at gas prices.

Good morning.

CHRIS HUNTINGTON, CNN FINANCIAL CORRESPONDENT: Daryn, thanks a lot.

Well, as you may have noticed, gas prices have come down in the last week. But get ready for them to go back up.

There's generally about a 10-day to two-week time lag between what you see at the pumps and what's happening in the crude oil futures market. And oil is up sharply again, up around $55, close to $56 a barrel in current trading right now. So you will see gasoline prices rise in the weeks to come.

The attitude in the energy markets is somewhat cynical about how much more influence Saudi Arabia can have about bringing down crude prices. As Suzanne alluded to there, the Saudis are already pretty much pumping at capacity right now. They have talked about raising that ability to pump more.

Indeed, they have made a promise to increase their spending on their oil infrastructure to raise capacity over the years to come. But frankly, the world crude market needs it and needs it right now. And Saudi is pretty much doing all it can.

Now, with regard to the United States, let's take a look at the latest figures from the Department of Energy on just how much oil we get from Saudi Arabia. These are in millions of barrels per day. And to put this in perspective, the United States uses about 20 million barrels a day.

We import about 10 million. So there you can see, of the 10 million barrels that we import every day, we get about 1.5 from Saudi Arabia, and so on down the line. What's interesting, though, and I think a lot of people are not aware of, is that we are getting roughly the same amount of crude oil from Canada and Mexico as we get from Saudi Arabia.

Now take a look at the total crude oil production figures for the world. Current crude production right now about 84 million barrels a day, OPEC close to 30 million of that. And as you can see, Saudi Arabia a little more than nine. Some people are saying Saudi is probably close to 10 now.

Saudi says it can go to about 11 in the near term, maybe upwards of 12, 13 in a couple years out. But overall, the point that I'm trying to make here, Daryn, is that Saudi Arabia's percentage of oil production in the world is smaller than a lot of people think.

Nonetheless, Saudi Arabia still the single biggest producer and exporter of crude. So it still has a fair bit of influence in the market. But basically, the point, Daryn, is that it is pumping at capacity and it is pretty much exerting all of the influence it can, at least in terms of fundamental supply, into the marketplace right now.

KAGAN: But the direct message to your wallet, enjoy these slightly lower prices at the gas pump for now because they will be going up very soon.

HUNTINGTON: Most likely.

KAGAN: Thank you, Chris.

HUNTINGTON: Yes.

KAGAN: Well, experts say that a terrorist attack on Saudi oil facilities could push prices over -- get this -- over $100 a barrel. And that raises the question, how secure are those production facilities? We asked our senior international correspondent Nic Robertson to find out.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): If Saudi Arabia's life blood is oil, this is its heart, Ras Tanura, the world's largest oil refinery and the country's principal oil export facility. We saw fortified defenses, but not enough to satisfy former CIA officer Bob Baer.

ROBERT BAER, FMR. CIA OFFICER: I could sit down now with my training in the CIA and people I know and do a concerted military attack on Saudi facilities, standoff attacks with rockets, and take five, six million barrels off the market.

ROBERTSON: So could a plane packed with explosives if it crashed into Ras Tanura, a 9/11-style scenario that Baer says is also possible. The last of more than one half the desert kingdom's normal production would turn disaster here into a global economic nightmare.

ADRIAN BINKS, PETROLEUM ARGUS: If a major facility was knocked out, such as the Ras Tanura export facility, and it looked like it would be out for many months, then the market would be absolutely frenzied and prices would rise through the sky almost.

ROBERTSON: At a high-tech control room, Saudi engineers say they plan for that possibility.

ABDALLAH JUMAH, ARAMCO: We always have drills about "what ifs," and, therefore, a -- even a terrorist incident, if it were to happen, it's not going to be worse than an industrial incident in a volatile industry like ours. ROBERTSON: Indeed, on a recent tour of Ras Tanura, where oil is not only refined but shipped out to the rest of the world, Saudi officials were keen to show off the safety features of the facilities.

(on camera): What you realize out of these oil-loading terminals, if terrorists were to strike against the Saudi oil infrastructure, it would have little effect. The system is spread out over a vast area.

(voice-over): But in a volatile market already jittery about terrorist attacks at Saudi oil installations, even a minor attack would rattle the global economy, the sort of pipeline attacks that are already common occurrence in Iraq.

BINKS: The most likely scenario, which would by an attack on a pipeline in Saudi Arabia, then prices would spike for a very short time.

ROBERTSON: So far, Saudi al Qaeda has killed and mutilated western oil workers on at least two occasions, but has not yet targeted oil installations. The fear is that tactic could change.

BAER: These people are perfectly capable if they got some sort of victory in Iraq of turning south and going after the Saudi royal family and going after the facilities. I've got no doubt about that.

ROBERTSON: With internal tensions from rising unemployment, a booming birth rate and struggling economy, the Saudi royals carry the burden of protecting not only their oil fields, but also the world's economy.

Nic Robertson, CNN, Ras Tanura, Saudi Arabia.

(END VIDEOTAPE)

KAGAN: Well, let's go ahead and bring it home here and check the price of some of the gas prices around the country right now.

They're actually down for the first time in a couple of weeks. According to the Lundberg survey, prices falling more than four cents a gallon over the past two weeks.

The average price for self-service regular, $2.24 a gallon. The highest price in the survey in San Francisco, $2.64 a gallon. And the lowest, in Tulsa, Oklahoma. You want to pull in there, you only pay $2.04.

Well, some folks are trying to eat less. Coming up next, we're going to tell you how to eat some of the best foods around the world.

And finally, could a wedding march be the music that Elton John wants to hear?

(COMMERCIAL BREAK)

(STOCK MARKET REPORT) (COMMERCIAL BREAK)

KAGAN: Within the last hour, federal authorities announced the indictment of an alleged heroin kingpin with suspected ties to the Taliban. Deborah Feyerick is in New York with details in our CNN "Security Watch."

Deb, good morning.

DEBORAH FEYERICK, CNN CORRESPONDENT: Good morning, Daryn.

Well, his name is Haji Bashir Noorzai. And drug enforcement officials tell CNN that he was arrested in New York on Saturday. He was traveling to New York when he was taken into custody.

Now he is expected to go before a federal judge to be arraigned sometime this afternoon, perhaps as early as 2:00. The head of the Drug Enforcement Agency described this arrest as "arresting the Pablo Escobar of Asia." That is the level that they are saying this man reached.

He is being charged with massive narcotics conspiracy. And according to the indictment, Noorzai is charged with providing demolitions, weaponry and manpower to the Taliban. And then in exchange for that, support the Taliban provided the Noorzai organization with protection for its opium crops, its heroin laboratories, as well as drug transportation routes.

Now, the U.S. attorney here in New York, David Kelley, earlier today gave this statement.

(BEGIN VIDEO CLIP)

DAVID KELLEY, U.S. ATTORNEY: On June 1, 2004, President Bush identified Bashir Noorzai as one of the world's most wanted drug kingpins. We are here this morning to announce the arrest of Noorzai, who is perhaps the most notorious Afghan drug lord and has built over the last 15 years a multimillion-dollar heroin business by forging an unholy alliance with Mullah Mohammed Omar and the Taliban.

This morning, we unsealed the two-count indictment charging Noorzai with conspiring to import into the United States and to possess with intent to distribute more than 500 kilograms of Afghan heroin worth more than $50 million.

(END VIDEO CLIP)

FEYERICK: Now, according to the House International Relations Committee, they say that Noorzai is believed to smuggle as much as 4,400 pounds of heroin almost eight weeks out of Afghanistan and into Pakistan. Now, the DEA says, "Today's arrest of heroin warlord Bashir Noorzai is a resounding victory for both Afghan and American citizens, and also seeks to stabilize the heroin trade" -- Daryn.

KAGAN: Deborah Feyerick, live from New York City. Deborah, thank you. The Department of Homeland Security is focusing attention at protecting the nation's railways. The mayor of New York says no city relies on mass transit more than his does.

(BEGIN VIDEO CLIP)

MAYOR MICHAEL BLOOMBERG (R), NEW YORK CITY: What I've always argued is simply good common sense. Homeland security funding should be based on risk and risk alone. And the bulk of the funding should go to cities like New York, that face the gravest threat of attack.

Instead, this bill, which is sponsored by Senator Susan Collins of Maine, would raise substantially the minimum homeland security grants going to all the states by 25 percent. And that includes states that are not on any high-risk target list by anybody's definition.

(END VIDEO CLIP)

KAGAN: Homeland Security Secretary Michael Chertoff toured New York's Grand Central Terminal, along with other officials earlier today.

CNN's "Security Watch" keeps you up to date on safety. Stay tuned day and night for the most reliable news about your security.

Speaking of trains, investigators in Japan are trying to figure out what caused the country's deadliest rail accident in more than 40 years. At least 50 people were killed, more than 300 were injured when a commuter train derailed during rush hour this morning.

Rescue crews used cutting tools to reach survivors trapped in the mangled wreckage. A witness described the scene after the train went off the tracks and crashed into an apartment building.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The first train car are totally crushed into the building. And it's -- it looks like so flat. And there are 10 rescue -- well, 10 or more rescue people on the second train car. And I couldn't see anything from here about the first train car.

(END VIDEO CLIP)

KAGAN: The train hit several cars, but it's not clear whether that was or after it derailed.

Let's take a look at other stories making news overseas in this morning's "World Wrap."

The withdrawal of Syrian troops from Lebanon is almost complete. A small contingent of troops stayed behind for a farewell ceremony tomorrow. The pullout marks the end of Syria's 29-year military presence in Lebanon.

Russian president, Vladimir Putin, says the country will continue on the path to freedom and democracy. But he says Russia must protect its values and find its own road to democracy. Mr. Putin also addressed economic concerns in his sixth annual state of the nation speech. That took place today.

Could it be wedding bells for Elton John? The pop star says he intends to marry his long-time partner, David Furnish. He tells the British tabloid, "The Mirror," he wants to hold a civil partnership ceremony perhaps in December. His publisher says the ceremony could also take place sometime next year.

We're taking you to the exciting and beautiful world of fashion after the break. You're going to meet some new models taking the fashion world by storm.

And it's been spring for a month, but winter will not let go. Your weather forecast is just ahead.

(COMMERCIAL BREAK)

KAGAN: Well, if any of you out there are missing winter, we have found it for you. Parts of the Midwest got hit with two feet of spring snow this weekend. The snowy snap took the swing right out of baseball. The Detroit Tigers had to cancel two home games.

One Michigander summed it up. "Last week in shorts and tank tops. Now we're stuck inside."

But it's not going to last for long. Rob Marciano here to look at weather and tell us, well, even when it does turn cold this time of year, you know that promise of warm weather is close by.

ROB MARCIANO, CNN METEOROLOGIST: Right. Especially when the tulips are popping up through the snow.

KAGAN: Yes, tulips, snow. Not -- something wrong with that picture.

(WEATHER REPORT)

KAGAN: Just something is wrong when the folks in D.C. and New York are about 10 to 13 degrees warmer than us. We're supposed to brag this time of year that we have the better weather.

MARCIANO: Well, I'm sure we'll have warmer weather soon, though.

KAGAN: Yes, well you work on that. Thank you, Rob.

MARCIANO: See you.

KAGAN: Speaking of heating up, there is a major political battle that is brewing in Washington. It could have far-reaching implications. At issue, faith, filibusters and the future of judicial nominees. Details on that just ahead.

(COMMERCIAL BREAK) KAGAN: We are coming up on the half-hour. Good morning once again. I'm Daryn Kagan. Here's a look what's happening "Now in the News."

The search resumes this morning for two missing toddlers in Georgia. Their mother says they disappeared from their home Saturday in Warrenton, Georgia, about 50 miles from Augusta. In a news conference you saw live here during the last hour, officials said they have no new leads on the disappearance of 2-year-old Nicole Payne or her brother, 3-year-old Jonah.

The crime rate is down, and the number of Americans in prison is rising. A Justice Department review finds 2.1 million people are behind bars. Experts attribute the increase to tougher sentencing guidelines and three-strikes-you're-out-type of laws.

General Motors recalling more than two million trucks and SUVs that were made back in 2000. Problems range from faulty seatbelts to fuel pumps that overheat. The models involved include the Suburban, the Tahoe, the Hummer, the Escalade, Yukon, Silverado and Sierra.

When it comes to mid-sized safety, nothing is better than the Jetta. The Insurance Institute rates the redesigned VW tops in side and front-end crashes. In fact, testers say the Jetta is the first vehicle to ace side-impact crashes.

And three space travelers landed on the steps of Kazakhstan earlier today. Two of the men had been orbiting Earth on the International Space Station since October. The third spend eight days on the station.

We're keeping you informed, CNN, the most trusted name in news.

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