Posted on 05/31/2006 8:21:37 AM PDT by mgist
Chávez to sign oil agreements, sparking optimism in Ecuador
QUITO, May 30 – Social movements, campesinos and Ecuadorian politicians today welcomed the visit of Venezuelan President Hugo Chávez and expressed optimism regarding the agreements that he will sign to strengthen bilateral ties and cooperation.
“The presence of Chávez makes it possible to reinforce cooperation agreements between the two nations and at this moment I think this is crucial for the country,” stated Virgilio Hernández of the Foro Urbano.
He emphasized that the proposal by Caracas regarding crude oil refinement is absolutely key; it must be taken advantage of in terms of cooperation, but also in terms of mutual interests.
Other groups such as Ecuarunari, an indigenous organization from the Sierra; Fenocin, the indigenous and Black campesinos of Ecuador, and Bolivarian movements also welcomed the arrival of the Venezuelan leader.
Agreements such as those that will be sealed today are not possible with the United States, they can be reached only between brother nations of the South and we hope that this step will be understood by the Ecuadorian authorities, maintained a Fenocin leader.
For Pedro de la Cruz, president of this group, now is the time to deepen relations among Latin Americans and take into consideration the Bolivarian Alternative for the Americas (ALBA) and the People’s Trade Treaty.
Ecuador and Venezuela have made the world hear their position by making their laws respected by the United States, which in its thirst for war and expansion tries to impose conditions on free trade agreements, he said.
De la Cruz considered it important to reach agreements with the Venezuelans, especially after Washington transformed a judicial issue – the expiry of the contract with the transnational oil company OXY – into a political matter.
The optimism of social, youth and indigenous organizations and movements contrasts with the attitude of some business organizations that are looking warily on the energy agreements that are to be signed in a few hours.
Ecuador will benefit from these agreements, since it will be able to refine its crude at Venezuelan refinery prices, which will adversely affect those businesses that have for years speculated with the wealth of the country.
The other pact, which establishes cooperation from technicians of the state-owned Petróleos de Venezuela (PDVSA) in modernizing the Ecuadorian refineries, affects intermediaries who have enriched themselves in that industry.
The agreements with Venezuela imply that the Ecuadorian government is looking southward, which it must do in order to prevent its economy from being choked, political analysts warn.
According to official estimates, the country must direct the majority of its income from the sales of crude (some 530,000 barrels daily) to purchase its derivatives, due to the inability of Ecuadorian refineries to cover internal demand. (PL)
I am sure his state controlled monopolies will create jobs and wealth the country has never dreamed of...down with the evil "coporatists." / sarcasm.
Moral of the story: The people of Latin America are about to shoot their own feet off.
"Moral of the story: The people of Latin America are about to shoot their own feet off."
Moral of the story is the people of Latin America will flood to the US once the prison camps are built and the killing starts.
No wonder why Fox is hell bent on not seeing a wall. He will need to be able to pass all these illegals through.
Yep! That too! Unfortunately...
The history of Latin America is replete with such cases.
Say hello to the new boss. Same as the old boss...
Exactly. They just kicked out their primary source of income. The problem is that their own national oil company is incapable of making any money. It has first pick of the prime oil fields, and still they can't even maintain production, or pay their contractors.
You will note in the article that their refineries don't even produce enough gasoline for the country, so they spend the money they make selling crude to buy gasoline. This is the national oil company for you.
The only way they make money, and the only way they are able to increase production, is through concessions to private oil companies, who are only allowed to exploit the lower quality oil fields. And now they've kicked out the main one, no one in their right mind is going to invest any more money trying to increase production in fields that may be taken from them at any time. And no international bank is going to loan them any money until the dispute with Oxy is resolved, if then.
Since they are starved for investment, this will force them into the arms of Chavez, who has gallantly offered to take over Oxy's assets. All the leftists agree that private oil companies that pay their way represent slavery for Ecuador, while Chavez, who will put up nothing, represents freedom.
Trying to build a country when its full of leftists is like trying to swim with an anchor tied around your neck.
Worse than that, they stole the private assets of equipment and the lease Oxy had paid for.
PIng
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