Chavez's Bolivarian Alliance: The Geopolitics of Oil.
Jorge Cruz Inclan
July 09, 2009
A new force is born, A New Latin American imperialism? Oil and the tactical alliance with Cuba has allowed Venezuela to move from being a country with little international journey to lead a bloc of countries every day has more weight in the entire hemisphere.
The Bolivarian Alliance has based its growth tactics in the oil, in the ideas and mechanisms Cubans, as well as the creation of a new regional policy, monetary and military is called on to fill the power vacuum that the United States are allowing in Latin America. Few years in the ALBA may become the new power in the hemisphere and the United States will then have a real enemy.
The oil goes to gasoline and diesel.
Data from Cuba show a stabilization of production upward Cuban oil refinery. The figures confirm earlier which provides for the Cienfuegos plant output daily of over 50 000 barrels of Venezuelan oil. Information from Reuters brings news that refinery can process Venezuelan oil at 20% heavy oil in Cuba. From the technical point of view of production shows that Cuba dominates the petroleum refining technology and has managed to use the Cuban heavy oil to produce diesel and gasoline. Both the Cuban and Venezuelan oil is heavy and extremely dense.
This makes refining has a higher cost. Besides the high sulphur component makes installations have greater wear and special materials required for the early stages. One sees that the formulation of 80% of Venezuelan oil with 20% of Cuban oil is sustainable and that is good news for oil production.
These data are not as good from a strategic point of view. The aid is crucial to Cuba's foreign policy in oil Chavez. For the first time this country is able to extract the oil markets and to provide a full range of products such as gasoline for cars, aviation fuel, diesel, oils ready for use.
Oil Diplomacy is now in a position to supply oil "cheap" to small countries in the region. In the future if there is a dispute with the United States, Venezuela can not threaten to sell oil to the United States and other markets can easily buy their produce.
Petrocaribe, purchased goodwill and countries with oil
Under the preferential sale of oil to Petrocaribe partners, conditions of supply of Venezuelan oil is apparently attractive, financing 40% when the price of oil exceeds $ 50, to 50% when it exceeds the $ 80 and 60% when passing the barrier of $ 100. The deadline for funding is 25 years and the interest rate applied is 1%.
"From a commercial standpoint, the supply of PDVSA (Petroleum of Venezuela) to the member countries of Petrocaribe is very beneficial. No country can says no, so now to Costa Rica and Panama will be incorporated this year" said Jorge Piņon, an expert on oil and power of the Center for Hemispheric Policy at the University of Miami. But this apparent Venezuelan aid has a high price in the future, as the so-called soft loans, as such, when making long-term financial costs are not insignificant.
In practice, these countries always have problems of funding and budget requirements to address large ambitious social programs, the Venezuelan provides greater liquidity in the early years. The debts will be paid by the next generation. There is talk of financing the purchase of oil, not giving away oil
The procedure aimed by Venezuela serves as a credit card, gives the idea that more money is available, but the debt exists. It's very different situation when a country makes an investment in a specific industry, bridge, etc... an expense as the oil that is made forever. If many poor countries tend to be buying what they can now enters an expansionary phase. 20 000 barrels of oil per day is not much, but after 30 years is a fortune, a lot of money to disburse.
Venezuelan oil policy compromises the independence of these countries. Ten to 15 years in Venezuela will be the owner of the national wealth of these countries. Make numbers and be surprised by the magnitude of the trap.
ALBA grows to govern
ALBA is soon to set up a field of political dependence around the Havana-Caracas axis of a disturbing magnitude. The supply of Venezuelan oil is a dead end. To gain access the oil to pay their grandchildren, countries have to fold to the guidelines for Chavez to be in agreement with ALBA in international and regional forums.
Start does not require membership in this body, but everything is structured for this. The entrance to the ALBA is a farewell to national sovereignty. Membership of the ALBA is increasingly politicized and will soon premiere its military aspect.
Since early 2008, Venezuelan President Hugo Chavez said in Hello President TV Show "the Bolivarian Alternative for Latin America, ALBA is a political-military strategy which commits its member states to form an alliance to defend themselves from an assault of United States.
Currently belong with this forum, Venezuela, Cuba, Nicaragua, Bolivia and Dominican Republic. In 2009 he joined Ecuador, Antigua and Barbuda, St. Vincent and the Grenadines and Honduras. There are besides participating in various programs and as invited guests and Paraguay Grenada, Belize, Jamaica, Honduras, Guyana and Suriname.
Chavez was clear: "We should work on the Alba, among Nicaragua, Bolivia, Cuba, Dominica and Venezuela to form a joint defense strategy and to articulate our armies, our air forces, our navy forces, our own National Guard, forces for cooperation against disasters, the security and intelligence, because the enemy is the same: the Empire of the United States. "
At the last meeting of the ALBA is ratified in 2009 this line, changing the name "Alternative" to "Alliance". On the path to a real power structure is agreed with create a council of Ministers of the ALBA and the next assembly must approve the new common currency "SUCRE" suffice in all member states.
From this moment ALBA begins to transform into an organization likes the European Union in the government and NATO in the military for Latin America. Now the range of independence of small and economically weak countries will be almost nonexistent. A high dependence on energy, a huge foreign debt generated by the oil and within a military force that will be considerably more than reasonable grounds for this assertion.
A network of Oil refineries outside Venezuela.
Chavez's policy of increasing oil refining is encouraged from Cuba. They believe that oil extraction ends when the final products reach the market, added value is higher, the unit is broken into buyers able to process Venezuelan oil, replacing other companies in countries of ALBA. When the network of refineries reaches a high percent of the Oil production, Venezuela may sell the same to the United States than to China.
The new oil diplomacy of Venezuela has the Havana as an equal partner. There are technical reasons but there is also a strong strategic alliance that makes it attractive about this union around oil. Cuba in the alliance feels comfortable, because the country has always refined oil and has qualified personnel at all stages. Without Cuba, Chavez would not be so bold.
While Chavez announced earlier this Diplomacy new oil refineries built in up to nine points, this is not behaving well in practice. The guidelines marked the Havana, a dictatorship oldest and astute; he knows very well use the carrot with the stick. They are being waiting to get the most benefit.
For now the Cienfuegos refinery is the flagship and the modernization of other large Cuban refineries are just about ready. These capabilities join the new refinery in Matanzas with deep-water port is included.
In couple of years Cuba will have a significant oil refining capacity, particularly in fuels for cars, industry and aviation, as well as lubricating oils. Cuba in this way leaves behind the days of sugar and oil will be the largest source of foreign exchange in the country.
Venezuelan geopolitics now buys 50% of the former Shell Refinery Co. of Santo Domingo to enlarge. In this operation, the Dominican leaders are changing independence by a handful of money. This refinery is especially desired by Chavez because it is close to the United States and near Puerto Rico.
For Cuba it is also attractive because the domain of oil will put in a Dominican government akin to Havana and Caracas. Oil has to achieve political change that could do the guerrilla invasion of Cuba in 1959. Include Puerto Rico to try to destabilize and remove it from the American system.
The president of Ecuador was complaining a few months ago for delays in investment in the refinery by Chavez promised to Correa. Does the game of the carrot, Ecuador enter the ALBA. Until this has not been confirmed Venezuela had halted all work.
This demonstrates the political significance that goes along with each agreement on oil and petroleum refineries. Investments in refineries are expensive and Chavez only wants where there is no danger, countries faithful, very loyal.
Oil pays the staging.
Many of the activities being carried out to favor Chavez forces allied in many Latin American countries are made with oil money dell. If oil is now a depressed price to rise again soon and for years has allowed Chavez to an impressive surplus. Figures are comparable to the drug trade, which is not difficult to buy support.
The oil leaves the country for the refineries. From refineries to other emerging markets. All operations are performed abroad and hamper the monitoring of money.
While the Venezuelan congress or other entity could hire an international audit, the Cuban variant has thought about it. The formula of the joint venture is great. A refinery enters a low price; it leaves a product that belongs to another owner.
This movement of oil makes the Magic cut the trail of possible legal inquisitors. The practice of re-export Cuban oil goes back to the Soviet and Cuba has more than 30 years of experience in the marketing of petroleum products. In addition, the dictatorship is well established within the oil markets of London and the South-Eastern Asia.
Poor statistics, the information is hidden in Cuba.
Cuba's government recently reported that production of refined oil products exceeded five million tons; these figures could be manipulated and adulterated. Revenue by $ 880 million in 2008 is not an amount that corresponds to the oil that enters Cuba from Venezuela and has nothing to do with refining capacity for the real Cuban facilities.
Havana makes the perfect game to Chavez and delivers all the necessary infrastructure for the oil from Venezuela could be used as currency in this phase of creating the new block. The new Bolivarian Alliance has aspired to be a military bloc to impose economic criteria in the hemisphere.
While the economies of its members are still not enough size, but will grow by addition. Now have the resources to exert political influence in different countries.
It is a time problem and they know the conditions of indebtedness of many countries and oil dependency is good recruitment tools. If gone unnoticed for many, the fact is that the Alliance has already invested in the political changes of Paraguay and some smaller countries of Central America.
In the passed Mexican elections was remarkable supporting Obrador. Could not be, but will continue trying. The same situation was present in Peru, where support for Humala was great. The recent turmoil in Peru supports the Alliance lead and thinks about the next election.
Honduras, the first real test.
For many readers, it may not be clear whether the removal of Zelaya legal or not, many may outweigh the topics of the military coups in Latin America. What no one can fails to recognize is that the Bolivarian Alliance is doing a great stage set around Honduras.
Honduras is being viewed in a large domain of the Bolivarian Alliance of the collective body of nations in the hemisphere. The OAS in this dispute is doing the role of the Alliance appendix, folding completely to its designs. The figure of Mr. Insulza as OAS Secretary General is very much like that of a Roman proconsul, by imposing the opinion of ALBA and leaving aside any kind of negotiation.
On this occasion, the ALBA has made an absolute media power. There are most of the region's political, media and television. In the network system including span have filled all the news sources with their positions. Knowing the tools of democracy are being undermined in their interest and are at the UN with a D'Escoto Sandinist serves no dialogue, is imposing the criterion ALBA over any other position.
The aircraft failed to return deposed Zelaya accompanied by the secretary of the UN Dīescoto and the presidents of Ecuador and Argentina are unprecedented. The media scene was organized with the live broadcast of the event by television stations in Cuba and Venezuela.
The capitalist Europe fears for their investments in the region and supports ALBA also statements of support Zapatero and Sarkozy who has little to do with this area but feared for their colonies in the Caribbean.
From the distance, the old enemies, the Russians and Chinese are smiling seeing things that are going to think that someone might never occur. They feel sorry for the weaker and complexes United States today. Are snares, they also want a bit of vacuum left by the Americans.
Spanish version of this article is in Cuba out: http://cubaout.wordpress.com/2009/07/08/el-alba-de-chavez-la-geopolitica-con-petroleo/
The Bolivarian Alliance has based its growth tactics in the oil, in the ideas and mechanisms Cubans, as well as the creation of a new regional policy, monetary and military is called on to fill the power vacuum that the United States are allowing in Latin America. Few years in the ALBA may become the new power in the hemisphere and the United States will then have a real enemy.
The oil goes to gasoline and diesel.
Data from Cuba show a stabilization of production upward Cuban oil refinery. The figures confirm earlier which provides for the Cienfuegos plant output daily of over 50 000 barrels of Venezuelan oil. Information from Reuters brings news that refinery can process Venezuelan oil at 20% heavy oil in Cuba. From the technical point of view of production shows that Cuba dominates the petroleum refining technology and has managed to use the Cuban heavy oil to produce diesel and gasoline. Both the Cuban and Venezuelan oil is heavy and extremely dense.
This makes refining has a higher cost. Besides the high sulphur component makes installations have greater wear and special materials required for the early stages. One sees that the formulation of 80% of Venezuelan oil with 20% of Cuban oil is sustainable and that is good news for oil production.
These data are not as good from a strategic point of view. The aid is crucial to Cuba's foreign policy in oil Chavez. For the first time this country is able to extract the oil markets and to provide a full range of products such as gasoline for cars, aviation fuel, diesel, oils ready for use.
Oil Diplomacy is now in a position to supply oil "cheap" to small countries in the region. In the future if there is a dispute with the United States, Venezuela can not threaten to sell oil to the United States and other markets can easily buy their produce.
Petrocaribe, purchased goodwill and countries with oil
Under the preferential sale of oil to Petrocaribe partners, conditions of supply of Venezuelan oil is apparently attractive, financing 40% when the price of oil exceeds $ 50, to 50% when it exceeds the $ 80 and 60% when passing the barrier of $ 100. The deadline for funding is 25 years and the interest rate applied is 1%.
"From a commercial standpoint, the supply of PDVSA (Petroleum of Venezuela) to the member countries of Petrocaribe is very beneficial. No country can says no, so now to Costa Rica and Panama will be incorporated this year" said Jorge Piņon, an expert on oil and power of the Center for Hemispheric Policy at the University of Miami. But this apparent Venezuelan aid has a high price in the future, as the so-called soft loans, as such, when making long-term financial costs are not insignificant.
In practice, these countries always have problems of funding and budget requirements to address large ambitious social programs, the Venezuelan provides greater liquidity in the early years. The debts will be paid by the next generation. There is talk of financing the purchase of oil, not giving away oil
The procedure aimed by Venezuela serves as a credit card, gives the idea that more money is available, but the debt exists. It's very different situation when a country makes an investment in a specific industry, bridge, etc... an expense as the oil that is made forever. If many poor countries tend to be buying what they can now enters an expansionary phase. 20 000 barrels of oil per day is not much, but after 30 years is a fortune, a lot of money to disburse.
Venezuelan oil policy compromises the independence of these countries. Ten to 15 years in Venezuela will be the owner of the national wealth of these countries. Make numbers and be surprised by the magnitude of the trap.
ALBA grows to govern
ALBA is soon to set up a field of political dependence around the Havana-Caracas axis of a disturbing magnitude. The supply of Venezuelan oil is a dead end. To gain access the oil to pay their grandchildren, countries have to fold to the guidelines for Chavez to be in agreement with ALBA in international and regional forums.
Start does not require membership in this body, but everything is structured for this. The entrance to the ALBA is a farewell to national sovereignty. Membership of the ALBA is increasingly politicized and will soon premiere its military aspect.
Since early 2008, Venezuelan President Hugo Chavez said in Hello President TV Show "the Bolivarian Alternative for Latin America, ALBA is a political-military strategy which commits its member states to form an alliance to defend themselves from an assault of United States.
Currently belong with this forum, Venezuela, Cuba, Nicaragua, Bolivia and Dominican Republic. In 2009 he joined Ecuador, Antigua and Barbuda, St. Vincent and the Grenadines and Honduras. There are besides participating in various programs and as invited guests and Paraguay Grenada, Belize, Jamaica, Honduras, Guyana and Suriname.
Chavez was clear: "We should work on the Alba, among Nicaragua, Bolivia, Cuba, Dominica and Venezuela to form a joint defense strategy and to articulate our armies, our air forces, our navy forces, our own National Guard, forces for cooperation against disasters, the security and intelligence, because the enemy is the same: the Empire of the United States. "
At the last meeting of the ALBA is ratified in 2009 this line, changing the name "Alternative" to "Alliance". On the path to a real power structure is agreed with create a council of Ministers of the ALBA and the next assembly must approve the new common currency "SUCRE" suffice in all member states.
From this moment ALBA begins to transform into an organization likes the European Union in the government and NATO in the military for Latin America. Now the range of independence of small and economically weak countries will be almost nonexistent. A high dependence on energy, a huge foreign debt generated by the oil and within a military force that will be considerably more than reasonable grounds for this assertion.
A network of Oil refineries outside Venezuela.
Chavez's policy of increasing oil refining is encouraged from Cuba. They believe that oil extraction ends when the final products reach the market, added value is higher, the unit is broken into buyers able to process Venezuelan oil, replacing other companies in countries of ALBA. When the network of refineries reaches a high percent of the Oil production, Venezuela may sell the same to the United States than to China.
The new oil diplomacy of Venezuela has the Havana as an equal partner. There are technical reasons but there is also a strong strategic alliance that makes it attractive about this union around oil. Cuba in the alliance feels comfortable, because the country has always refined oil and has qualified personnel at all stages. Without Cuba, Chavez would not be so bold.
While Chavez announced earlier this Diplomacy new oil refineries built in up to nine points, this is not behaving well in practice. The guidelines marked the Havana, a dictatorship oldest and astute; he knows very well use the carrot with the stick. They are being waiting to get the most benefit.
For now the Cienfuegos refinery is the flagship and the modernization of other large Cuban refineries are just about ready. These capabilities join the new refinery in Matanzas with deep-water port is included.
In couple of years Cuba will have a significant oil refining capacity, particularly in fuels for cars, industry and aviation, as well as lubricating oils. Cuba in this way leaves behind the days of sugar and oil will be the largest source of foreign exchange in the country.
Venezuelan geopolitics now buys 50% of the former Shell Refinery Co. of Santo Domingo to enlarge. In this operation, the Dominican leaders are changing independence by a handful of money. This refinery is especially desired by Chavez because it is close to the United States and near Puerto Rico.
For Cuba it is also attractive because the domain of oil will put in a Dominican government akin to Havana and Caracas. Oil has to achieve political change that could do the guerrilla invasion of Cuba in 1959. Include Puerto Rico to try to destabilize and remove it from the American system.
The president of Ecuador was complaining a few months ago for delays in investment in the refinery by Chavez promised to Correa. Does the game of the carrot, Ecuador enter the ALBA. Until this has not been confirmed Venezuela had halted all work.
This demonstrates the political significance that goes along with each agreement on oil and petroleum refineries. Investments in refineries are expensive and Chavez only wants where there is no danger, countries faithful, very loyal.
Oil pays the staging.
Many of the activities being carried out to favor Chavez forces allied in many Latin American countries are made with oil money dell. If oil is now a depressed price to rise again soon and for years has allowed Chavez to an impressive surplus. Figures are comparable to the drug trade, which is not difficult to buy support.
The oil leaves the country for the refineries. From refineries to other emerging markets. All operations are performed abroad and hamper the monitoring of money.
While the Venezuelan congress or other entity could hire an international audit, the Cuban variant has thought about it. The formula of the joint venture is great. A refinery enters a low price; it leaves a product that belongs to another owner.
This movement of oil makes the Magic cut the trail of possible legal inquisitors. The practice of re-export Cuban oil goes back to the Soviet and Cuba has more than 30 years of experience in the marketing of petroleum products. In addition, the dictatorship is well established within the oil markets of London and the South-Eastern Asia.
Poor statistics, the information is hidden in Cuba.
Cuba's government recently reported that production of refined oil products exceeded five million tons; these figures could be manipulated and adulterated. Revenue by $ 880 million in 2008 is not an amount that corresponds to the oil that enters Cuba from Venezuela and has nothing to do with refining capacity for the real Cuban facilities.
Havana makes the perfect game to Chavez and delivers all the necessary infrastructure for the oil from Venezuela could be used as currency in this phase of creating the new block. The new Bolivarian Alliance has aspired to be a military bloc to impose economic criteria in the hemisphere.
While the economies of its members are still not enough size, but will grow by addition. Now have the resources to exert political influence in different countries.
It is a time problem and they know the conditions of indebtedness of many countries and oil dependency is good recruitment tools. If gone unnoticed for many, the fact is that the Alliance has already invested in the political changes of Paraguay and some smaller countries of Central America.
In the passed Mexican elections was remarkable supporting Obrador. Could not be, but will continue trying. The same situation was present in Peru, where support for Humala was great. The recent turmoil in Peru supports the Alliance lead and thinks about the next election.
Honduras, the first real test.
For many readers, it may not be clear whether the removal of Zelaya legal or not, many may outweigh the topics of the military coups in Latin America. What no one can fails to recognize is that the Bolivarian Alliance is doing a great stage set around Honduras.
Honduras is being viewed in a large domain of the Bolivarian Alliance of the collective body of nations in the hemisphere. The OAS in this dispute is doing the role of the Alliance appendix, folding completely to its designs. The figure of Mr. Insulza as OAS Secretary General is very much like that of a Roman proconsul, by imposing the opinion of ALBA and leaving aside any kind of negotiation.
On this occasion, the ALBA has made an absolute media power. There are most of the region's political, media and television. In the network system including span have filled all the news sources with their positions. Knowing the tools of democracy are being undermined in their interest and are at the UN with a D'Escoto Sandinist serves no dialogue, is imposing the criterion ALBA over any other position.
The aircraft failed to return deposed Zelaya accompanied by the secretary of the UN Dīescoto and the presidents of Ecuador and Argentina are unprecedented. The media scene was organized with the live broadcast of the event by television stations in Cuba and Venezuela.
The capitalist Europe fears for their investments in the region and supports ALBA also statements of support Zapatero and Sarkozy who has little to do with this area but feared for their colonies in the Caribbean.
From the distance, the old enemies, the Russians and Chinese are smiling seeing things that are going to think that someone might never occur. They feel sorry for the weaker and complexes United States today. Are snares, they also want a bit of vacuum left by the Americans.
Spanish version of this article is in Cuba out: http://cubaout.wordpress.com/2009/07/08/el-alba-de-chavez-la-geopolitica-con-petroleo/
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