Home > Chávez explains the fundamentals of Petrocaribe
Trade-Exchange Rates Energy South/Latin America
– Venezuela has greater oil reserves than any Middle
Eastern nation
– To contribute $50 million initially for Petrocaribe to
immediately begin functioning
BY JOAQUIN RIVERY TUR Granma daily special correspondent
PUERTO LA CRUZ, Venezuela, June 29 President Hugo Chávez
explained during the 1st Energy Summit of Caribbean Heads
of State and Government that the Venezuelans had designed a
plan for Petrocaribe, according to which oil supplies would
be directed toward three points: Cuba (including Jamaica);
a route toward Haiti, and a third toward the eastern
Caribbean.
Chávez explains the fundamentals of Petrocaribe Only by
avoiding intermediaries would there be a substantial
savings in fuel costs, he added.
Referring to his country’s enormous oil and gas reserves
greater than those of any Middle Eastern country the
president stated that the Venezuelan people want to share
these with their southern brothers, and even with their
Northern ones, to whom they are already sending
considerable amounts.
In order for operation to begin immediately, he proposed a
fund called ALBA Caribe for Economic and Social
Development, which will be supplied by contributions from
financial and non-financial instruments, with percentages
appropriate to each individual case, and with a total that
would be financed from (oil) supplies to the members.
Venezuela would contribute $50 million as initial capital.
PDVSA has already created a subsidiary called PDV Caribe,
Chávez noted. Its transportation capacity would be adequate
for supplies and would be charged at cost without any
additional fees, thus reducing expenses, he added.
That affiliate, he explained, would also organize direct
supply, storage and refining where possible; it would
prioritize the neediest, and would adopt plans for training
human capital, mass vaccinations and investments in public
health.
He emphasized that the financing agreement would be a
long-term one.
The Venezuelan president stated that Petrocaribe also would
help with developing alternative sources and highly
efficient energy production systems.
The Venezuelan proposal has been fine-tuned for months, he
explained, so that it takes into account responsibility for
production, trade, transportation and other aspects, and
formal work must be done with an organization that would be
a ministerial council that would obligatorily meet once a
year.
Therefore, political will is needed he emphasized and
all types of pressure must be resisted.
Within that structure, an Executive Secretariat is proposed
that would be charged with permanent administrative tasks,
under the Venezuelan Ministry of Energy.
Remarking on the current crisis, Chávez quoted from a
1970s-era book citing energy waste as one of the causes of
such a crisis, and commented that the energy consumption of
the New York Twin Towers alone was equivalent to that of a
city with 100,000 people.
He exposed scheming by the US government, which is
manipulating a Venezuelan oil company in the U.S. that owns
several refineries and never returned its profits, except
for this year, prompting a Washington investigation.
However, he affirmed, the Venezuelan government is not
worried, and is resolved to be completely free, whatever
the price.
The leader of the Bolivarian Revolution explained that OPEC
has been considerably increasing its production in the face
of growing demand, and that non-members have increased
more, and are closer to possible production ceilings than
the members.
Fidel then explained that in the late 19th century, the
world was consuming 7 million tons (of oil), which means
that virtually all the world consumption has occurred
during the 20th century.
Chávez noted that currently, price fluctuations are very
sensitive, and any hurricane or strike threat in an
oil-producing country immediately causes prices to rise. It
should also be taken into account that refining capacity
has remained the same for many years, while demand for
petroleum products has grown so much that the refinery
ceiling has been reached.
Crude oil prices are expected to rise to $70 per barrel in
the next few years, he commented.
http://www.granma.cu/ingles/2005/junio/juev30/28expuso-i.html
Forum posts
1 July 2005, 05:09
In a few month one the American Government has messed up with every country there might be a huge lack in supplies on oil in the states. Therefore Americans go ahead and support the criminals in
Israel, we can wait and laugh when your economy which is wrecked anyway by outsourcing and lack of
industrial base also lack on real investment.
Japan and China keep you for the time being out of the crush, but sure this will change in the future, too. As energy comes rare for supporters of the United criminal rougue states of America.
Mr. Chavez you are an honest man and please stop any supply of oil to USA.
1 July 2005, 17:22
The US is the prototypical empire on the brink of collapse.
As the previous commentor pointed out, the economy is composed entirely of debt, and depends on the borrowing of about 3 billion dollars each day from creditor nations. In additon, the infrastrure is crumbling and products are imported instead of manufactured (creating a double-edged sword of deficits). The educational system is laughable, and all the social safety nets have frayed beyond recognition. Pensions are bankrupt and health care is in crisis.
Our nation is split ideologically, with half that want to move forward, to be more like Europe, with a secular, human-oriented, intellectual culture. The other half (remnants of the Confederacy) want a fundamentalist police state with protofascist male- and race-centered, xenophobic and isolationist laws justified by religion. In the midst of this deterioration, our democracy and Constitution are in crisis, with dubious elections and a puppet media that supports the dwindling separation of powers with a constant stream of fear-mongering propaganda.
Regardless of the military might and belicose posturing of the cowboys in the Pentagon, the US is really an impotent State. Mr Chavez knows this. Despite all its weapons and bombs, it is completely vulnerable on the basis of one factor: the US Dollar.
Once people in the civilized world lose their patience and realize the threat they face by what is becoming one of the biggest rogue states in history, they will eviscerate US power in one fell sweep. Simply eliminating dollars from their reserves and trading oil in Euros (as Saddam had threatened to do) would bring the US military machine to its knees.
Unlike the US, Europe has a real economy and infrastructure to support a large capital base. In the course of the transition, the Euro will increase in value, interest rates will rise to cool growth, and that will provide further incentive for investment. More countries will join the common currency.
The US monster may have many heads, but it has no defence against the Achille’s heels of debt and thirst for oil.
The Green Revolt—it will change the world without a single shot being fired.