Showing posts with label Venezuelan Oil. Show all posts
Showing posts with label Venezuelan Oil. Show all posts

Friday, September 7, 2012

Destabilizing Venezuela Pre-Election

Global Research
Stephen Lendman

Venezuelans get to choose between Bolivarianism under Chavez and Henrique Capriles Radonski’s corporatism they rejected resoundingly in 1998.

Polls show they’ll do it again. IVAD late August results show Chavez ahead 55% to 34%. Only 10% of Venezuelans are undecided.

Eight major July polls showed Chavez leading by 15 – 27%. Subsequent ones weeks later revealed his support remains strong. Few doubt October’s outcome. At issue is only by how much. On December 16, regional elections follow.

In late August, Chavez warned that opposition forces plan to declare victory before electoral results are announced. They’ll say they won, reject National Electoral Council (CNE) totals, and claim fraud.

They’ll call for violence, destabilization and US help. “They are gearing up….with some allies in the world, some media, some social organizations to claim victory,” said Chavez. “We know they are capable of anything.”

He urged respect for official results, adding:

“We will support the National Electoral Council. We call on all sectors to respect the referee, the Constitution, the laws.”

Capriles’ economic advisor, Ricardo Hausmann, said his campaign will announce its own results independently of official ones.

Ultimas Noticias editor Eleazar Diza Rangel said they’ll “claim fraud (and won’t) recognize the people’s will.”

Since Chavez took office in February 1999, 15 national and regional elections were held. Independent observers declared them open, free and fair. America’s Carter Center calls Venezuela’s electoral system one of the world’s most reliable.

Around 200 or more international observers will monitor October 7 voting. Expect confirmation of another exemplary democratic process. It puts America’s to shame and then some. US federal and many regional ones lack legitimacy. Big money controls them. Ordinary people have no say.

Venezuelans get the real thing. They’re not about to accept pre-Chavez harshness. They want no part of corporatism at their expense.

The Venezuela Solidarity Campaign published a report saying a leaked internal right wing document revealed plans to roll back public services if elected.

It calls for reducing state funding. Health care, education, food subsidies, housing assistance, communal council projects, and other programs Venezuelans rely on will be affected.

The document titled “First Ideas for Economic Actions of the National Unity Government” calls for “concrete steps to decrease, in the medium and long term, the heavy load of goods and services” by slashing overall social spending.

Privatizations and neoliberal harshness are planned. What Venezuelans rejected years ago they want reinstated. They plan presidential diktat authority to enforce it. They want to “dismantle the socialized and collectivized state model.” Their plan replicates IMF financial terrorism.

It mandates mass layoffs, deregulation, deep social spending cuts, wage freezes or cuts, corporate-friendly tax cuts, prioritizing the divine right of capital, crushing trade unionism, and harsh crackdowns against non-believers.

Ahead of October 7, destabilization began. Expect more. Washington’s dirty hands bear full responsibility. Chavez is relentlessly targeted. Bush policy was vicious. Obama promised better but lied.

He wants corporatism replacing Bolivarianism. He failed but won’t stop trying. Chavez knows the stakes and what he faces. Hegemons demand unchallenged dominance. No holds barred tactics go all out.

Weeks ahead of October 7, a suspicious oil refinery fire occurred. A gas explosion ignited it pre-dawn. An immediate investigation was launched. Venezuela’s Amuay facilitity was hit.

It’s the nation’s largest. It’s part of state owned PDVSA’s Paraguana Refining Complex (PRC). It produces 645,000 barrels of oil per day. Extensive damage halted production. Vital revenues were lost. Reports said operational areas weren’t affected.

On August 31, production resumed. PRC head Jesus Luongo said strong winds complicated firefighting. PRC vice president Asdrubal Chavez said shipments resumed on September 2.

He also explained that contingency plans were implemented during down time. Regular distribution continued. “If the whole network of refineries were stopped,” he added, “we’d be able to supply fuel for more than 10 days.”

The incident took 48 lives. Plant workers and National Guard forces died. Over 100 others were injured. Hundreds of homes and businesses were destroyed or damaged.

It’s one of Venezuela’s deadliest incidents. Earlier Tacoa and Las Tejerias refinery accidents killed 260 and 48 respectively. Around 160 died from a Ricardo Zuluaga electric power plant explosion.

Amuay’s fire burned for days and spread. Damage caused was extensive. Chavez declared three days of mourning, saying:

“At this time of great pain, and from the bottom of my soldier’s heart, may you and all of our comrades in arms from the National Bolivarian Guard receive a huge embrace in solidarity for the painful loss of such brave lives in the tragedy in Amuay.”

“As the Son of Bolivar that I am, today my mourning is the same mourning as that of the entire country.”

Following the incident, opposition forces and media scoundrels accused authorities of “gross negligence,” “under-investment,” and poor maintenance.

Chavez called it “very regrettable if some Venezuelans tried to use the pain of the victims to take advantage of the situation” and use it for political advantage.

“I know who is saying this,” he said, “but I will not stoop to their level.” Energy Minister Rafael Ramirez said the plant received around $4.3 billion in 2012.

At the time of the explosion, reports said government web sites were hacked. Corporate-owned Globovision broadcast exclusive footage. Someone unnamed was positioned outside the plant at 2AM to film it. Suspicions followed that Amuay was no accident.

On September 3, Press TV headlined “Sabotage more probably than mishap in Venezuela refinery blast,” saying:

Responding to spurious charges of government negligence and other accusations, Chavez said:

“You can’t exclude any hypothesis….It’s practically impossible that here in an installation like this which is fully automated everywhere and that has thousands of responsible workers night and day, civilian and military, and that there is a gas leak for 3 or 4 days and nobody responds. This is impossible.”

On September 6, Press TV headlined “US-backed opposition devises plots to destabilize Venezuela,” saying:

Chavez supporters accused them of spreading fear and terror ahead of October’s election. Amuay’s incident was Exhibit A. Political activist Hindu Anderi said:

“Our principal is to always be mobilized, to be on alert against anyone attempting to sabotage the election on October 7.”

“They will do this to create an environment in which Venezuela will be looked upon as an outlaw state.”

“This will make it easier for military intervention or at least sanctions against Venezuela.”

He and others accused Washington of plotting against Chavez, his allies and Bolivarianism. Chavez said America and opposition forces want his government destabilized.

On August 28, he showed how Bolivarianism differs from neoliberal harshness. He allocated millions of aid dollars for victims and family members.

Spouses of victims got lifetime pensions. Their children get educational scholarships. Damaged and destroyed properties will be rebuilt. Interim housing was provided. One victim said state help came quickly. No one needing it is excluded.

Chavez congratulated everyone who pitched in to help. “The spirit of patriotism, national unity, and the battle for life is being financed,” he said.

Vice minister Hugo Carvajal of Venezuela’s Integrated System of Crime Investigation said:

“The Bolivarian government has organized a multidisciplinary team of the best disaster investigators of the Investigation Division of Disasters of the CICPC and the Board of the Technical Scientific and Investigation Consultancy of the Attorney General’s office to work out the precise actions that lead to the fire.”

Evidence is being examined. Satellite and ground photos were taken. Witnesses were questioned. Information is being carefully analyzed. Findings will be released when available.

Industrial accidents aren’t uncommon. Amuay’s timing and extensive damage raised suspicious red flags. Latin American expert James Petras agrees.

The incident, he believes, “was an act of sabotage, planned and executed by a clandestine group of terrorist specialists acting on behalf of the US government.” Convincing arguments back this reasoning.

Cui bono is most obvious. Washington, Capriles, and corporate fascists hoped to benefit. They planned taking full advantage. Chavez was blamed. Venezuelans hear it ad nauseam. It wore thin long ago.

Nonetheless, dark forces never quit. Washington funds opposition forces. It’s gone on throughout Chavez’s tenure. CIA operatives infest the country. All independent governments are targeted. Chavez is Latin America’s prime target. Its oil riches alone explain why.

Several times he said Washington wants him assassinated. Regional US bases threaten him. He’s a marked man. He’s also resilient.

He’s not about to let threats roll him over. He pulls no punches. He condemns imperial US policies. Few anywhere match his outspokenness. Most Venezuelans support him for good reason.

Reelection next month looks certain. Imagine if America had leadership like his. He doesn’t seek regional or global hegemony. He endorses peace, not war. He engages other nations cooperatively. He seeks unity and world solidarity. He heads the kind of democracy Americans can’t even imagine.

His policies are socially progressive. State resources provide vital services. He champions civil and human rights. Ordinary Venezuelans are helped, not denied or persecuted.

No secret prisons exist. He doesn’t target neighbors or practice torture. His elections are judged open, free and fair.

The contrast with Washington is stark. Leadership in both countries is mirror opposite. Venezuelans have choice when they vote. Americans get two sides of the same coin. It’s corrupted, dysfunctional, tyrannical, and too broken to fix. Bolivarianism shames it.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

His new book is titled “How Wall Street Fleeces America: Privatized Banking, Government Collusion and Class War”

http://www.claritypress.com/Lendman.html

Visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.


Monday, January 9, 2012

Chavez Says Venezuela Won’t Accept World Bank Arbitration

BusinessWeek
Nathan Crooks and Jose Orozco

Hugo Chavez
Jan. 9 (Bloomberg) -- Venezuela will pull out of a World Bank-affiliated arbitration panel and won’t accept any of its rulings, including a multi-billion claim for a nationalized oil project by Exxon Mobil Corp., President Hugo Chavez said.

The Washington-based International Centre for Settlement of Investment Disputes, or ICSID, is considering Exxon’s claim in one of about 20 suits filed there against the Venezuelan government. Wichita, Kansas-based Koch Industries Inc. and Owens-Illinois, Inc., the world’s largest maker of glass containers, are among other companies seeking compensation.

“We won’t recognize any decisions from the ICSID,” Chavez, who has seized assets in the energy, mining and telecommunications industry during his 12-year rule, said yesterday on state television. Exxon is “seeking the impossible, that we pay what we will never pay.”

Exxon, the world’s largest oil company by market value, was the first to abandon Venezuela after Chavez expropriated industry assets in 2007. The self-declared socialist revolutionary forced foreign oil producers into joint ventures as minority partners that year and is also in arbitration at the World Bank with ConocoPhillips, which rejected the terms.

“We’ve got to get out of that ICSID,” Chavez, 57, said during a six-hour Alo Presidente talk show yesterday, which he resumed for the first time since being diagnosed with cancer in June. The South American leader on Jan. 4 said that Exxon had been “arrogant” for demanding as much as $12 billion in compensation for its stake in the Cerro Negro project that produced and processed heavy crude oil.

Exxon had no comment on Chavez’s statement, spokesman Patrick McGinn said yesterday in an e-mail.

Pulling Out

Chavez has threatened to withdraw Venezuela from ICSID as early as 2007. If he follows through this time, it’s unlikely to affect arbitrations already underway, said Michael Nolan, a partner in the Washington office of Milbank, Tweed, Hadley & McCloy.

“Chavez is not going to solve Venezuela’s very serious international legal problems with either speeches or even a formal denunciation of the ICSID convention,” Nolan, who has represented clients in arbitration with Venezuela, said today in an e-mailed response to questions.

Exiting the arbitration panel would also require Venezuela withdraw from some 20 bilateral investment treaties with various countries, a process that would still give companies “many years” to initiate claims against the government, he added.

Enforcement Measures

In a separate case, the New York-based International Chamber of Commerce, an arbitration court, ruled last month that state oil company Petroleos de Venezuela SA must pay Exxon a net $746.9 million for the Cerro Negro nationalization.

Exxon in 2010 reduced its claim to $7 billion from $12 billion, according to PDVSA, as the Caracas-based company is known. Chavez said yesterday that the country would only reimburse Exxon for what it had actually invested in the country.

PDVSA said on Jan. 2 that it would pay $255 million in cash for the ICC judgment, after accounting for about $300 million in a frozen New York bank account and $191 million of Exxon debt that it will cancel. The total amount of the International Chamber of Commerce ruling was for $907.6 million, minus a $161 million counterclaim by PDVSA.
A decision favoring Exxon at the ICSID would be more easily-enforced because it gives a successful claimant the right to enforce against assets in third party states, Nolan said.
“If Exxon gets an award in the ICSID, the enforcement mechanisms are strong,” said Nolan.

Owens-Illinois in September filed for arbitration at the ICSID for compensation for two bottling plants nationalized by Chavez’s government in 2010. Other companies with claims against Venezuela at the ICSID include Tenaris SA, the world’s biggest maker of seamless steel tubes, and The Williams Companies, Inc., a natural gas services supplier located in Tulsa, Oklahoma.

--Editors: Stephen Merelman, Joshua Goodman

To contact the reporters on this story: Jose Orozco in Caracas at jorozco8@bloomberg.net; Nathan Crooks in Caracas at ncrooks@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

Wednesday, July 20, 2011

Venezuela tops world oil reserves

Miami Herald
Jim Wyss

Venezuela surpassed Saudi Arabia in oil reserves, OPEC reported. But analysts say the quality of those reserves is an issue.

Venezuela’s proven oil reserves have surpassed Saudi Arabia’s for the first time, making it the most oil-rich nation in the world, according to the Organization of Petroleum Exporting Countries.
In its 2010-2011 Annual Statistical Bulletin, OPEC said Venezuela’s proven oil reserves spiked 40 percent in 2010 to reach 297 billion barrels. Saudi Arabia, the long-time leader in the category, had 265 billion barrels of proven reserves, according to the online report, which will be published in November.

During his 12 years in office, President Hugo Chávez has used the nation’s oil wealth and the state run PDVSA oil company to finance his “21st Century Socialism” and bankroll projects in allied countries such as Cuba, Haiti, Bolivia and Nicaragua.

The new reserves are being fueled by finds in the existing fields of Barcelona, Maracaibo and Barinas, as well as off-shore projects and in the Orinoco, Venezuela’s Ministry of Communication and Information said in a release Tuesday.

But the figures are also a matter of debate. About one-third of Venezuela’s reserves are extra heavy crude, which is difficult to extract and only economically feasible to recover when the long-term price of oil is above about $70 a barrel, said Jorge Piñon, a research fellow at Florida International University and the former President of Amoco Latin America.

The cash-strapped PDVSA may have trouble raising the funds to tap that oil, he said.

“You can be sitting on the largest reserves in the world but if you do not have capital and technology to recover them…they are worthless,” he said.

Despite Venezuela’s oil wealth, its economy is struggling. Venezuela was the only OPEC nation to see its economy shrink between 2009 and 2010. And it’s seeing annual inflation of 24 percent — the hemisphere’s highest.

The oil sector itself is also facing problems. Venezuela’s oil production has fallen steadily over the last five years, and dipped 0.8 percent from 2009 to 2010 to 2.85 million barrels per day, according to OPEC. That comes while neighboring Colombia and Brazil saw crude production rise 17 percent and 5.3 percent respectively.

Saturday, June 4, 2011

Venezuela under attack from the empire once again

Axis of Logic
By JOAQUÍN RIVERY TUR 

WITH imperial arrogance, the government of Barack Obama has undertaken a new offensive, unilaterally imposing economic sanctions, completely unsubstantiated, on the company which provides the Venezuelan people a significant portion of its resources: Petróleos de Venezuela S.A. (PDVSA).

The issue is the danger that these sanctions represent, that the U.S. government is unleashing new attacks on the Bolivarian Revolution precisely when Latin American and Caribbean countries have reached a new level of unity and integration.

The sanctions issued by the Obama administration presume to punish PDVSA for its trade relations with the Islamic Republic of Iran. At this rate, all countries will have to ask permission of the U.S. State Department when they carry out these kinds of activities with any nation not to the liking of Washington. This is clearly a violation of the international free trade agreement for oil and other minerals, which the government of Venezuela has taken upon itself to reject with the unconditional support of the member countries of the Bolivarian Alliance for the Peoples of Our America (ALBA).

The sanctions which the U.S. intends to impose state that PDVSA is not allowed to sign contracts with the U.S. government, or receive any financing from the country for its operations.

This is laughable, since the document itself indicates that this is no way affects the delivery of Venezuelan oil to the U.S. As far as financing goes, the body in charge of such transactions within that country is the governmental Export-Import bank, an entity to which Venezuela owes not a single cent and which Venezuela can do without. Clearly the decree doesn’t carry much weight, but does reveal the true U.S. concerns in opposition to the process unfolding in Venezuela led by Hugo Chávez.

The sanctions are an indication that the objective, established by the United States, is the control of all areas rich in energy resources and Venezuela has vast oil reserves in the Orinoco Belt.

In any event, the Venezuelan oil company can easily do without its U.S. customers, although Caracas is interested in maintaining the best possible relationship with the people of the United States and continuing its traditional supply, given that it even owns refineries within U.S. territory, under the name of CITGO.

There are already numerous transnational corporations based in a variety of countries which have accepted the conditions set forth by the Bolivarian government in contracts for oil exploration, extraction and sales. The principal emerging powers in the world, such as China, Brazil and India, whose developing economies are large consumers of oil, and others less strong, are drawn to Venezuela’s energy resources, now a key component of the global energy market.

For example, on September 16, 2010, the Venezuelan official gazette published Law 39.511 which ratified a long-term trade agreement between the governments of China and Venezuela, including a credit of 20 billion dollars to finance 19 development projects. The payment of this line of credit will be effected through the sale of oil to the Asian country, of no less than 250,000 barrels daily in 2011 and 300,000 in 2012. Oil tankers are already leaving Venezuelan shores with half a million barrels of oil for China a day.

Making the announcement, Chávez clarified that it is not just about the amount, but also, "It must be read as a political, geopolitical document, one of confidence."

Within a few years, more than a million barrels of oil will depart every 24 hours headed for China, the same amount sold to the United States. This cannot be much to the liking of Washington, as fuel available at a minimal distance which U.S. transnationals have always aspired to controlling.

Nevertheless, it must be repeated, the major concern of the United States is the Latin American current committed to unity and integration led by Bolivarian Venezuela. It will be extremely difficult for the U.S. to dominate the rest of the world without control of Latin America and the Caribbean, with their extensive energy, water, mineral and land resources, as well as their biological diversity.

It is no accident that the United States is trying to develop a neoliberal economic block along the Pacific coast of South America which it hopes to counterpoise to Mercosur and the Bolivarian Alliance, ALBA.

Wednesday, May 25, 2011

Venezuela threatens to interrupt US oil supply

Christian Science Monitor
Venezuela's Foreign Minister Nicolas Maduro (l.)
and Venezuela's Oil Minister and
President of Petroleos de Venezuela SA (PDVSA),
Rafael Ramirez attend a joint press conference in
Caracas, Venezuela, on Tuesday, May 24.
Maduro threatened to interrupt US
oil supply after Washington placed sanctions on
the Venezuelan state oil company, this week.

The threat came in response to new US sanctions on Venezuela's state oil company, which currently provides about 10 percent of American oil imports.

Venezuela's foreign minister warned late Tuesday that it could no longer guarantee regular oil shipments to the United States after Washington placed sanctions on the Venezuelan state oil company,

Petroleos de Venezuela SA (PDVSA), this week. The spat underscores long-running tensions over what Venezuelan President Hugo Chávez sees as America's disproportionate, unjust exercise of power on the world stage.

“There are several proposals that are being evaluated by President [Hugo] Chávez to respond to the United States’ imperialist pretensions,” said Foreign Minister Nicolás Maduro, according to the Miami Herald. A close associate of Chávez accused the US of trying to be "the world's policeman as it steps on the sovereignty of the people."

But for now, the almost 1 million barrels of oil a day that Venezuela sells to the US – 10 percent of US oil imports, more than 40 percent of Venezuela's oil exports – remain on track. Reuters reports that past threats to interrupt the US oil supply never materialized.

The sanctions, a response to Venezuela's continued assistance to Iran's energy industry, do not ban oil exports to the US and shouldn't affect the operations of the US branch of PDVSA. A decrease in supply to the US would be intentional, not a result of the sanctions.

The US is targeting PDVSA because it believes that Venezuela delivered $50 million worth of reformate, a "gasoline blending component," to Iran in the past year. The US hopes that the sanctions, which also target six oil and shipping in other countries, will cramp Iran's fuel supply. The Christian Science Monitor reports that although Iran has ample oil, its refinery capacity is inadequate and it imports 40 percent of its gasoline.

The newest round of sanctions mark the first attempt by the US to go beyond Iran in its attempts to halt its nuclear program, which it suspects of being geared toward nuclear weapon production. Past sanctions have targeted Iranian companies and banks.

The sanctions came a day after President Obama signed an executive order giving the State and Treasury Departments more leeway to target companies involved with Iran's energy industry, The Wall Street Journal reported. The new sanctions prevent PDVSA from competing for US government contracts, getting licenses for US exports, and receiving financing from the US Export-Import Bank.
The ramped-up sanctions were announced the same day that the International Atomic Energy Association said in a report that it believes that Iran continues to make progress with its nuclear program. While Iran claims its program is only for energy purposes, much of the world believes that Iran aims to produce nuclear weapons.

Iran was supposed to halt any weapon-oriented work in 2004, but the IAEA found evidence of such work as recently as 2010. On Wednesday, an Iranian official scoffed at the IAEA claims, calling them "repetitive and boring" and dismissing the allegations, Agence France-Presse reports.

The IAEA report also cited evidence that in 2003 that Iran was working on a nuclear trigger device, which would likely only be utilized in a nuclear weapon, The New York Times reported. The US estimates that Iran is at least a year, but more likely several years, away from being able to produce a nuclear bomb.