LATIN AMERICA ALLIES ON ETHANOL

ALLIES, as in "forms an alliance." Could be a form of "lies" if you think about it. Chavez obviously did.

South American presidents agree to form strategic energy alliance
April 17, 2007 (AFP via Yahoo News)

WHO
South American leaders: Colombian President Alvaro Uribe, Venezuelan President Hugo Chavez, Brazilian President Luiz Inacio Lula Da Silva, Bolivian Hydrocarbons Minister Carlos Villegas, Brazilian Energy Minister Sillas Rondeau, as well as the presidents Argentina, Bolivia, Chile, Ecuador and Paraguay, the prime minister of Guyana and the vice president of Uruguay. Peru's President Alan Garcia, a fierce critic of Chavez, did not attend.

WHAT
Formation of the South American Energy Council, a strategic alliance to insure energy security.

WHEN
This week.

WHERE
Margarita Island, Venezuela

WHY
By backing away fromhis earlier criticism of ethanol as detrimental to corn prices, Chavez made agreement possible. Chavez acknowledged there is the need for ethanol as a gas additive. This settled, the leaders were able to iron over or postpone differences between energy-exporting (Venezuela, Bolivia) and energy-importing (Brazil) governments. Pipeline projects between countries were also discussed.

QUOTES
Chavez: "We want to clarify that we are not against biofuels…[as long as they do not] take corn away from people ... to feed cars."
Uribe: "I believe the bases are being set for a South American agreement that includes the issues of oil, natural gas, alternative fuels, fuels based on agricultural product, the question of hydro-electric energy, and the issue of interconnection.."
Villegas: "I believe we will eventually move from regional markets to a global gas market, and that is when it would be important to have price targets so that prices can be regulated at a global level…"