|
By Jens Erik Gould
Daily Journal Staff Sept 8, 2005 This is part of a series of re-published articles I wrote in 2005 for the Daily Journal in Caracas Energy and Petroleum Minister Rafael Ramirez said on Thursday that it will take several weeks to assess Hurricane Katrina-related damage at state-run Petroleos de Venezuela's (PDVSA) joint-venture refinery in Chalmette, Louisiana, and that operations at the plant would likely be normal by December. It's too early to give a date for when Chalmette will be operating, Ramirez said at a press conference. "In a week we will know more or less how the things are there—at least we'll have a first impression—I think that we'll be completely normalized around December." Ramirez said that PDVSA was in the process of determining what to do with heavy crude exploited from the Cerro Negro field in the heavy oil belt, which is normally processed at Chalmette. ExxonMobil, which owns Chalmette with PDVSA, said that a team was on the ground to assess the plant and that a specific timeframe could not be given until the damage was evaluated, the oil publication Platts reported on Thursday. The town of Chalmette is only two miles outside of New Orleans and is faced with devastation and heavy flooding much like the city itself. Ramirez said that the refinery had no electricity and that the companies still needed to locate many displaced employees. The Chalmette refinery has a normal production of 187,000 barrels per day (bpd).
0 Comments
By Jens Erik Gould Daily Journal Sept 1, 2005 This is part of a series of re-published articles I wrote in 2005 for the Daily Journal in Caracas President Hugo Chavez appeared to lift a brief moratorium on harsh criticism of Washington late Wednesday as he said U.S. relief efforts responded "in slow motion" to the devastation caused by Hurricane Katrina. The comments came only two days after he expressed a willingness to improve tense bilateral relations. "The greatest power in the world--which is paying I don't know how much attention to Iraq, and I don't know how much to Venezuela-leaves its population drift in its own territory," Chavez said in a speech televised by state-run Venezolana de Television. The president called Bush "the king of vacations," charging that "all he said over there at his ranch was 'you have to flee,' and didn't say how." Chavez even recommended that the U.S. look to Cuba for an example of expert disaster response. The president's words contrasted with his tone after meeting on Monday with U.S. civil rights leader Jesse Jackson, who pressed for a cooling down of harsh rhetoric between Caracas and Washington. On that occasion, he didn't once mention "Mister Danger," his favored nickname for U.S. President George W. Bush. Yet merely two days after Jackson's visit, Chavez attributed the hurricane's devastating force to rising ocean temperatures, which he at least partly blamed on "capitalist consumption" and Washington's decision not to sign the Kyoto environmental accord. Despite the reproach, the foreign ministry offered gasoline and humanitarian aid to the U.S. on Wednesday to help buoy disaster areas. "We express our solidarity, our pain," said Chavez, who assured he was ready to send airplanes with aid workers to the U.S. U.S. Department of State spokesman Sean McCormack on Thursday acknowledged Venezuela on a list of countries offering aid and said that Washington "will accept all offers of foreign assistance," the department's web site said. The Venezuelan Consulate in New Orleans said that at least 70 percent of the 1,200 Venezuelans living in disaster states Louisiana, Mississippi y Alabama could be homeless, the state-run Bolivarian News Agency (ABN) reported. Citgo, the US-based subsidiary of state-run PetrÛleos de Venezuela (PDVSA), was coordinating with the Venezuelan government to provide assistance to victims, giving special attention to Venezuelan citizens. Chavez also continued assurances that the U.S. was planning military action against Venezuela in an interview with CNN. "I pray to God that it never occurs to Mr. Bush and his hawks to try it," Chavez said. "Because they would sink in the waters of the Caribbean and would bite the dust of defeat." The president said he knew how many ships and helicopters were involved in the "Balboa Plan," a U.S. initiative that he said aimed to capture Venezuela's petroleum. This is part of a series of re-published articles from The Daily Journal.
Former manager reports field damage Daily Journal A former manager of state-run Petroleos de Venezuela (PDVSA) said on Tuesday that it was "probable" that oil fields north of Monagas were permanently damaged, reported Union Radio. Maurilio Gonzalez, who managed operating agreements with foreign companies in Western Venezuela, estimated that the damage would cause a loss of approximately 10 billion barrels of oil "if the monitoring of the oil fields is not carried out like it should and if the injection of gas does not meet the levels that the oil fields demand." Gonzalez rejected statements made by Energy and Petroleum minister Rafael Ramirez that foreign oil companies are at least partly responsible for an decrease in oil production. "These are very serious multinational companies, some of the most important petroleum companies in the world," said Gonzalez. "During our administration they demonstrated total transparency in the management of their affairs and brought new technology that we had not applied." "These companies account for 1.2 million barrels throughout the country, so it would seem that there is a double discourse and a hostile position towards professionals of high quality," he said. "We don't understand the double discourse." The former manager also said that current figures on PDVSA production suggest that money generated by the industry is missing. Gonzalez said that 63 percent of the oil industry's 2004 profits are unaccounted for, and that "it is known that it is not being invested in the industry." Daily Journal
May 30, 2005 This is part of a series of re-published articles from The Daily Journal. Private oil production is on the rise, reported El Universal on Monday. According to the Venezuelan Central Bank (BCV), foreign companies exported 18 percent of Venezuelan oil produced in the first trimester of 2005. These companies only accounted for 14.6 percent of production in the first trimester of 2005. The news comes despite recent government accusations that foreign oil companies have evaded taxes and represent a threat to Venezuela's sovereignty. Efforts are underway to investigate the 32 operating agreements signed with the companies in the 1990s. Starting this week, former presidents of state-run Petroleos de Venezuela (PDVSA) and former petroleum ministers will appear in front of a special National Assembly commission that is investigating the operating agreements. Jose Vielma Mora, the National Tax and Tributary Administration Service (Seniat) superintendent, is set appear at the commission on Tuesday at 3pm. The BCV reported that the private sector accounted for $1.7 million of the $9.7 million in Venezuelan oil exports in the first trimester. The private sector only represented $1 million of oil exports in the same period last year. Sales for state-run Petroleos de Venezuela (PDVSA) also rose from $5.9 million in the first trimester of 2004 to $7.9 million in the first trimester of this year, an increase of 34 percent. This growth is in part due to a 36 percent increase in Venezuelan oil prices, rising from $28.18 per barrel in the first trimester of 2004 to $38.39 in the first three months of this year. Yet the figures suggest that foreign companies have also increased production. An OPEC report citing secondary sources said last week that Venezuela was producing 2.65 million barrels per day (bpd), even though PDVSA maintains that the country is producing 3.1 million bpd. Indicators of falling production and accusations of corruption have affected the perception of Venezuelan bonds, reported El Universal. Average OPEC oil prices rose each of five consecutive days last week, closing at $47.45 per barrel on Friday. While last week's prices were lower than the average April price of $49.63 per barrel, they were much higher than last year's prices, which averaged $36.05 per barrel. The government has taken a hard-line with multinationals in what officials describe as a "battle" to defend Venezuelan oil resources. President Hugo Chavez recently declared that his administration would recalculate the tax rate on the 32 operating agreements to 50 percent up from 34 percent. Also, Venezuela last October unilaterally upped royalties on four heavy-oil ventures in the Orinoco region to 16.7 percent from 1 percent. Daily Journal
May 29, 2005 It is not like the president to miss a chance to speak. Yet Hugo Chavez was a no-show twice this weekend. His weekly television show "Hello, President" was canceled Sunday, one day after Chavez did not attend a large pro-government rally in downtown Caracas. Communication and Information minister AndrÈs Izarra announced Sunday that the program would be replaced by the live broadcast of the World Volleyball League. The announcement was intended to end rumors about the whereabouts of Chavez, EFE reported. Vice President Jose Vicente Rangel told tens of thousands of Chavez supporters on Saturday that the president would not speak at the rally, a rare occurrence at a march of that size. "I understand your reaction, but we have to get used to - hear me well, comrades - Chavez being a human being, who cannot be everywhere at all times," said Rangel. The masses of red shirts and signs protesting the United States government quickly dispersed after hearing that Chavez would not speak. Rangel closed the demonstration with a speech indicating that the government was preparing a 700-page file requesting the extradition of suspected terrorist Posada Carriles "The government of the United States is trying to do everything it can to protect and save a terrorist, which implicates him with the terrorist politics that the US government has employed," said the Vice President. Posada Carriles is currently being held by the United States and has been accused of planning the bombing of a Cuban airliner that killed 73 people in 1976. Rangel also said that "a second assault" on PDVSA was in the works and accused the media of portraying delinquent company. Energy and Petroleum Minister Rafael RamÌrez also spoke, affirming that the government would defend Venezuela's oil and give oil wealth back to the people. "We have to bring this discussion of the defense of our principal resource to the last corner of our country because here we are simply discussing the possibility of using oil to benefit our population," said RamÌrez. Another official cited "security reasons" when she asked the crowd to move to a part of BolÌvar Avenue closer to the speaker's platform. The march, which began in Petare and ended downtown with a rally on the Avenida BolÌvar, was "in defense of PDVSA (state oil company PetrÛleos de Venezuela) and against terrorism." Demonstrators held signs demanding the extradition of Luis Posada Carriles, denouncing the "imperialism" of the United States government and proclaiming the sovereignty of Venezuela. AmÈrica Salas, a 48-year-old artesian, said she believed that opposition forces as well as the United States were infiltrating PDVSA. "The proof is my intuition," said Salas. "The things that have happened in PDVSA make me think that the United States has its hand in there. They would earn more with the old PDVSA," said Salas, referring to the company's management before the national strikes ending in 2003. Sentiment against the United States was growing, said Hewitt Andrea, a 45-year-old environment worker. "Of course the (anti-US) feeling rises when the imperialists come to attack us," said Andrea. "We don't want war but we are prepared for one." But Jes˙s, a 32-year-old teacher, said the march was not against the United States. "It's to reaffirm our sovereignty," he said. "There aren't threats. We're just reaffirming that every country is free." Many protesters did not want Venezuela to end diplomatic relations with Washington, as Chavez said the government might do if the U.S. does not extradite Posada Carriles. "I don't think ending relations is necessary," said Salas. "I think the relations between the people (of both countries) should continue. You have to differentiate between the people and the government." Several demonstrators said they thought allegations of corruption and decreased production at PDVSA was part of a media campaign. "It's possible that there's a drop of truth, but not at the level that the media says," said Salas. Nelly, a mother from Maracaibo, said she had never missed a Chavez march. Her daughter, Natalie, said the president came to her house last year during a visit to the Vuelvan Caras mission, and helped secure medicine for her ill father. "He helped us. He said, 'What do you need? How can I help,'" said Natalie. "Before I was a chavista," said Nelly. "Now I'm more." She added that she thought it was "obvious" that the United States wanted to invade Venezuela. "They want oil," she said. "They want everything for free." By Jens Erik Gould Daily Journal May 26, 2005 This is part of a series of re-published articles I wrote in 2005 for the Daily Journal in Caracas. Three foreign oil companies operating in Venezuela denied Wednesday's allegations that they broke production agreements. A spokesperson for Norway's Statoil told The Daily Journal on Thursday that "miscommunication" existed between the company and Energy and Petroleum Minister Rafael RamÌrez. Rafael RamÌrez on Wednesday accused Sincor, a strategic association formed by Norway's Statoil, France's Total and Petroleos de Venezuela (PDVSA), of exceeding production levels authorized by the National Congress in the 1990s. The minister called the situation a "scandalous case" and said a 30 percent royalty would be applied to all production above the agreed-upon level. However, Statoil said that Sincor's production levels were approved by PDVSA and ministry. "We are absolutely sure that the approvals given by the Congress and the Ministry were realized in accordance with the law," said Statoil's spokesperson. According to the Norwegian company, Sincor is producing 180,000 barrels per day (bpd) of upgraded crude in Faja del Orinoco, differing from the figure of 210,000 bpd given by RamÌrez yesterday. "As of now, we have received no formal notification of the concerns expressed by Minister Ramirez regarding the strategic association Sincor," the company said. Statoil added that it was looking forward to discussing the matter with RamÌrez. France's Total also found RamÌrez' statements "surprising," reported El Universal on Thursday. "We have absolute confidence in the solidity of the contracts and agreements that we signed, as well as our legal and fiscal position," said a Total spokesman late Wednesday. "We have received formal approvals from the Congress as well as from the Ministry of Energy and Oil and we have respected them fully." While RamÌrez focused on Sincor, he accused all four strategic associations upgrading heavy crude of having "legal problems." Yet Exxon Mobil, which participates in the Cerro Negro upgrading project, also denied that it had violated its contract, Reuters reported. "Not true," said ExxonMobil CEO Lee Raymond in a short statement on Wednesday. Former PDVSA director Jose Toro Hardy told The Daily Journal on Thursday that RamÌrez' accusations were "confusing." "PDVSA and the government had in its hands and in the contracts the established means of control to know if those things were occurring or not," said Toro Hardy, referring to supposed violations committed by strategic associations. He added that it was "curious" that RamÌrez would accuse Sincor after President Hugo Chavez announced from Paris earlier this year that Sincor would expand its operations in Venezuela. The oil expert also wondered if RamÌrez' allegations against strategic associations operating in the Faja were related to a decrease in Faja production. The International Energy Agency (IAE) indicated a decrease of 98,000 bpd-from 580,000 bpd to 488,000 bpd-in Faja production between March and April of this year, Toro Hardy pointed out. The former PDVSA director also said he believed the minister's accusations served as a smoke screen for allegations of irregularities and falling production at the state oil company. RamÌrez, who doubles as the president of PDVSA, said on Wednesday that the company's former management was "anti-national," accusing it of conspiring with international interests to "assault" the Venezuelan state. With PDVSA in the public eye for the past month, Toro Hardy believed that such accusations were an attempt by the government to "distract attention or look to blame someone else." He attributed falling PDVSA production-indicated by a recent OPEC report-to the Chavez government's firing of over 20,000 workers after the national strikes in 2003. Investigations to come By Daily Journal Staff The National Assembly's (AN) special commission to investigate oil operating agreements will call former managers of the state oil company Petroleos de Venezuela (PDVSA) and ex-energy and mines ministers to examine those agreements in front of the commission in the weeks to come. Rodrigo Cabezas, president of the commission, said Thursday the schedule of these appearances had been modified, reported Union Radio. Jose Vielma Mora, National Tax and Tributary Administration (Seniat) chief, is set to appear next Tuesday at 3 p.m. to revise the tax system for the operating agreements signed with foreign firms during the oil "apertura" or "opening" of the 1990s. Next Wednesday at 9 a.m., former PDVSA presidents Luis Giusti and AndrÈs Sosa Pietri and former ministers Edwin Arrieta and Humberto CalderÛn Berti are scheduled to appear in front of the commission. Former PDVSA president AlÌ RodrÌguez Araque and current deputy of Energy Bernard Moumer, among others, will appear the following week. Ramirez calls operating agreements 'anti-national'
By Jens Erik Gould Daily Journal Staff May 25, 2005 This is part of a series of re-published articles I wrote in 2005 for the Daily Journal in Caracas. Crowds of government supporters surrounded the National Assembly (AN) on Wednesday to cheer Energy and Mines minister Rafael Ramirez as he tightened the government's grip on foreign oil companies. In an appearance lasting all day, Ramirez told a special AN commission formed to investigate operating agreements with foreign firms that an initial study of the agreements showed them to be ""illegal." The commission will be in charge of studying the documents, deciding if multinational companies are guilty of irregularities, and whether sanctions will be applied to these firms, he said. Turning his scrutiny towards strategic associations that upgrade heavy crude, Ramirez said that Venezuela would charge the Sincor project a 30 percent royalty fee for production exceeding agreed-upon levels. The minister said that Sincor, comprised of France's Total, PetrÛleos de Venezuela (PDVSA) and Norway's Statoil, is currently producing 210,000 bpd and will soon reach 260,000 bpd, while the National Congress in 1993 only authorized Sincor to produce a maximum of 114,000 barrels per day (bpd). Ramirez said he will also reduce the operating area of the four strategic associations to 250 km2. Sincor, is currently operating on 324 km2, he said. The minister, who doubles as the president of Petroleos de Venezuela (PDVSA), wasted no time in criticizing the company's former management. He called the "old" PDVSA "essentially anti-national," accusing it of conspiring with international interests to "assault" the Venezuelan state, which he said brought economic and social crisis to Venezuela. He called the oil "opening" or "apertura," which opened up investment to foreign firms in the 1990s, a strategy "orientated towards the capture and control of PDVSA by multinational interests, towards the minimization of the value of our resources, towards the evasion of control on the part of the state, and towards open and direct confrontation with the nation and the Venezuelan state." He added that the "old" PDVSA preferred to pay taxes to foreign governments than to the Venezuelan state. "The National Assembly has to take a position against this scandalous case," he said. The minister formally handed over to the AN a document including the texts of the 32 operating agreements, which he said the AN and PDVSA did not previously have access to. Ramirez added that he wanted Venezuelan citizens to have access to the documents. Turning his attention to Citgo Petroleum Corp, which is owned by PDVSA, Ramirez said that a study could demonstrate a failure to pay taxes by the company. He added that the ministry is conducting a study of oil sales to the United States since 1999, when the two countries signed a double taxation agreement. The minister has previously criticized an agreement between Citgo and PDVSA that allows the former to buy oil at discount prices. A price control system similar to ones used by Saudi Arabia and Mexico will also be put into place, Ramirez said. The system will assure that PDVSA maintains the same price for all of its clients. Of the deputies who posed questions to Ramirez, Christian Democrats (Copei) party member CÈsar PÈrez Vivas and deputy CÈsar Rincones of AcciÛn Democr·tica (AD) were notable members of the opposition. Before Ramirez spoke, Perez Vivas demanded that the session be suspended, calling Ramirez "corrupt" and charging that the session would not be conducted in an objective manner. "Yesterday we established rules and methodologies for this interpellation and this morning we can observe that an audience has been prepared to give a political show rather than an interpellation," said PÈrez Vivas. Yet Ramirez saw nothing wrong with the session. "I thought it was a very democratic discussion," said Ramirez afterwards, noting that over 20 deputies had a chance to speak. Rincones told Ramirez he believed PDVSA needed to be supervised by the Comptroller's office. The deputy said he had no problem with PDVSA money going to social programs, but wondered if some oil profits might be ending up in corrupt pockets. Yet Ramirez said after the session the ministry did not "have anything to hide." The minister recognized that problems currently existed in the oil sector, but preferred to discuss such matters "at another time and in another space." Ramirez also said that the press' coverage of supposed irregularities at PDVSA was "very confusing," and that he "wouldn't use it as a reference for any reason." Perez Vivas also wondered why so many PDVSA workers left work to attend the session and asked who had paid for the buses that brought the minister's supporters to demonstrate outside the AN building. The minister called the presence of the PDVSA workers a "gesture of support." He added that PDVSA had "changed forever" and that it was now devoted to the Venezuelan people and the government's social "missions." Televisions and large speakers were placed at the entrance of the National Assembly so that the red-clad crowd could watch the session. They waved banners of support for the minister, cheered when he spoke and heckled when opposition deputies took the stand. Insults and calls of "dirty deputy" erupted from the crowd outside when PÈrez Vivas took his turn at the microphone. The minister's demands on Wednesday marked another move in increased government efforts to crack down on foreign companies operating in Venezuela. The government removed a royalty holiday for strategic associations last November, which raised royalties from 1 to 16 percent. Daily Journal
May 24, 2005 Telesur, the Latin American television station, broadcast a test signal on Tuesday that covered four countries. Communication and Information Minister AndrÈs Izarra inaugurated the trial run from the RÌos Reyna room of the Teresa CarreÒo theater in downtown Caracas. The television station, incorporated as Television del Sur, C.A., is a multinational company shared by Venezuela, Argentina, Cuba and Uruguay. Today's broadcast was a first step towards the ultimate goal of covering all of the Americas, including the United States and Canada, said the Bolivarian News Agency (ABN). The Communication and Information Ministry press office would not tell The Daily Journal if the twenty-four-hour-long test signal left Venezuela, but another ministry official confirmed that it did reach the other four countries. The channel plans to beginning twenty-four hour coverage on July 24 and aims to provide an alternative to US and European-owned channels, Reuters reported. The promotional video broadcast by satellite on Tuesday covered the United States' aid program in Colombia. Telesur will devote 40 percent of its programming to journalistic pursuits such as news, interviews and documentaries, while the remainder will be dedicated to independent and regional programming. The channel's board of directors includes Uruguayan journalist Aram RubÈn Aharonian and other professional journalists from around Latin America. Columbia journalist Jorge Enrique Botero said that one distinguishing element of the station will be its emphasis on Latin American film, ABN reported. Telesur's web site (www.telesurtv.net) says that another key difference will be the station's "unique discourse supported by big corporations that deliberately deny and ignore the right to information." The web site adds also calls the channel an "alternative capable of representing the fundamental principles of authentic media: truth, justice, respect and solidarity." By Jens Erik Gould
Daily Journal This is part of a series of re-published articles I wrote in 2005 for the Daily Journal in Caracas. Jose Miguel Vivanco, Human Rights Watch director for the Americas, criticized recent Venezuelan legislation for limiting freedom of expression on Tuesday. "The notion of giving extra protection to the reputation of authorities goes against an elemental democratic principal," said Vivanco at a human rights forum at the Catholic University Andres Bello (UCAB). Vivanco said that the Law of Social Responsibility in Radio and Television and recent reform of the Penal Code contain language that is "highly open and very vague, from which arbitrary activity and abuse can arise." The legislation in Venezuela is contrary to movements in other Latin American countries and Europe, he said, where the media is putting increasing pressure on state officials. But Communication and Information minister Andres Izarra rejected Vivanco's statements at Tuesday's inauguration of Telesur, Latin America's new television channel. "We reject these types of alienated descriptions along with other extreme opinions coming from the United States," said Izarra, referring to Washington-based Human Rights Watch "In Venezuela, we are providing teams to community media, we are opening new media like (Telesur), we are democratizing radioelectrical space," continued Izarra. "In Venezuela the liberty of expression has tremendous support in the management of the Bolivarian government." Yet Vivanco, who also said that Venezuelan judicial powers failed to protect values like freedom of expression, was not the first to criticize the recent legislation. Carlos Correa, director of the Venezuelan Program for Education and Action of Human Rights (Provea), said on May 4 that the reform of 22 articles of Penal Law in March makes it easier to commit crimes against public officials and increases prison time for offenders. "Political debate is a public good and very important to a democratic society," said Correa. "What's more, the possibility to access information allows for social control of public governance. It's necessary to guarantee that any type of scrutiny of public officials doesn't have consequences." Correa published a study earlier this month showing a 22 percent rise in Venezuelan violations of freedom of expression in 2004. March 2005 Penal Law reform did not influence the study. Journalist Sebastian de la Nuez of Ultimas Noticias said at a forum put on by IPYS in early May that Venezuelan society and media could do more to protest the legislation. "In a participatory democracy, we assume that society has something to say about a matter as delicate as the freedom of the press and penal law," said De la Nuez. "But they haven't [said anything], or they've done it half-way," he added. "And I believe the media itself hasn't collaborated sufficiently; they haven't done everything they could so that this law can be debated publicly." The Financialist
Traffic and smog are so bad in China that authorities in six cities have put the brakes on new car purchases. Last month, officials in Hangzhou, the capital of the eastern province of Zhejiang, capped new passenger car and minibus purchases at 80,000 for 2014 – less than half of the 200,000 bought last year. To do this, authorities made license plates available only through a lottery and auction system. Hangzhou’s measure will hardly make a dent in China’s overall automobile sales, only trimming annual sales by an estimated 0.6 percent, according to Credit Suisse analysts Bin Wang and Mark Mao. The bigger impact will likely be on sentiment towards auto stocks, since investors may worry more Chinese cities will follow suit. Who is celebrating the news? Fuel-efficient vehicle makers such as China’s BYD Co. Ltd: electric, plug-in hybrid and fuel cell cars are all exempt from the restrictions. First published in 2014 |
JENS ERIK GOULDJens Erik Gould is a political, business and entertainment writer and editor who has reported from a dozen countries for media outlets including The New York Times, National Public Radio and Bloomberg News. Archives
February 2020
Categories |
RSS Feed