CHAVEZ SPEAKS

Hugo Chavez is to the dawn of the 21st century what John D. Rockefeller was to the dawn of the 20th century: Hero to some, demon to others, Oil Oligarch to all. Rockefeller, of course, never got so involved in politics (except for buying and selling politicians). That’s the worrisome thing about Chavez: A power broker is one thing; a potential demagogue is another.

Chavez offers LatAm energy pact; Venezuela President Hugo Chavez has pledged to guarantee the energy needs of his allies in Latin America
8 August 2007 (BBC News)
and
Chavez keeps up South American energy diplomacy
Conrado Hornos, August 8, 2007 (Reuters via Yahoo News)

WHO
Venezuelan President Hugo Chavez, Argentine President Nestor Kirchner, Bolivian President Evo Morales

WHAT
In a tour of 4 South American countries, Chavez promised “energy security” and “energy investment” from oil-rich Venezuela for the developing economies of the countries he visited.

click to enlarge

WHEN
Chavez was in Buenos Aires August 7 and Montevideo August 8.

WHERE
Chavez stopped in Buenos Aires, Argentina, Montevideo, Uruguay, and then went on to Ecuador and Bolivia.

WHY
- The trip appeared to bolster Chavez regional popularity. His speeches included jibes at the US. He compared US oil consumption to Count Dracula’s nocturnal adventures and asserted that US oil policy had been imposed on Latin America at the point of a gun.
- He talked about developing LNG facilities in Montevideo and Buenos Aires. Such facilities could cost $1 billion and produce 10 million cubic meters of natural gas/day.
Uruguay, largely agricultural, imports all gas and oil supplies, some from Venezuela at cut-rate prices.
- Argentina is desperately in need of Venezuelan energy. It has been rationing natural gas to cope with the demand of an economy growing 8%/ year. Argentine President Nestor Kirchner is a Chavez ally. In return for the promise of energy, Argentina will buy $500 million more in Venezuelan debt, making the total purchases $5 billion.
- Venezuelan state oil company PDVSA and Bolivian state oil company YPFB will cooperate on oil and electric companies, with an initial $670 million investment.
- A gas pipeline running the length of South America is also on the Chavez agenda, as is a “energy treaty” with Nicaragua.

The proposed pipeline. (click to enlarge)

QUOTES
- Chavez: "We're talking about a regasification [LNG] plant here too, another in Argentina, where the three countries could converge…"
- Chavez: “…We are proposing a southern gas line to bring Venezuelan gas through Brazil to Uruguay, Argentina and Paraguay…Venezuela has gas to last 150 years."
- Chavez: "The United States has 5% of the world's population, but it consumes more than 20% of the energy used in the planet…The US has a very serious problem. Its oil reserves won't last for many more years. It has used up its own reserves, and it has used up the reserves of half the world."