Venezuela Cuts Supply to Some Citgo Gas Stations, for Greater Efficiency

Caracas, Venezuela, July 14, 2006—Citgo, a subsidiary of Venezuela’s state owned oil company PDVSA, announced yesterday that it plans to stop supplying approximately 1,800 of its 14,000 gas stations in the United States. The reason is that it no longer wants to purchase gasoline for these stations from refineries other than its own.

Currently Citgo purchases 130,000 barrels of gasoline per day from refiners outside of its own refinery network, in order to cover the demand that its 14,000 affiliated gas stations generate. Citgo decided that such purchases leave it at a disadvantage with respect to other gas station chains and thus decided to cut off supply to some of its stations.

Venezuela’s Minister of Petroleum and Energy, Rafael Ramirez, explained today that the cutback to Citgo stations does not in any way imply a cutback of Venezuelan crude oil to the United States.

The supply to the 1,800 gas stations that will no longer receive Citgo gasoline will be cut simply but not renewing their supply contracts. “We are avoiding contracts that do us harm,” said Ramirez.

Ramirez further clarified that, “There are no plans to leave the U.S. market, something that President Hugo Chavez has declared before.”

Alejandro Granado, the President of Citgo’s Board of Directors, said that with this measure “we are adjusting Citgo’s distribution capacity in accordance with the availability of production that PDVSA has in the United States and the Caribbean.” The measure would thus allow Citgo to better serve its clients, he added.

The decision was the result of an evaluation that was started when “the new PDVSA” was launched following the opposition-led shutdown of the oil industry in December 2002 to January 2003.

Felix Rodriguez, Citgo’s CEO explained that the move would mean that Citgo will focus its activities on its markets in the Northeast, the South and Mid-Atlantic, and part of the Mid-West, where its refineries are located. Citgo has eight refineries in the U.S., which are located in Lake Charles, Louisiana; Corpus Christi, Texas; and Lemont, Illinois.

Energy Minister Ramirez said that the contracts that forced Venezuela to purchase gasoline from non-Citgo refineries were typical of the types of businesses that the “4th Republic,” the pre-Chavez governments, engaged in. According to Ramirez, the former PDVSA management specifically sought to avoid profits, so it would not have to pay these to the Venezuelan state.

While emphatically denying that Venezuela has any plans to sell PDVSA or to reduce refining in the U.S., Ramirez did say that Citgo is considering the sale of one of its refineries because that refinery is not being supplied with Venezuelan crude. Venezuelan crude tends to be fairly heavy and refineries have to be especially equipped to handle this type of crude.

Currently Venezuela purchases crude elsewhere for this refinery, which results in significant losses for Citgo. Ramirez has previously explained that similar situations exist in Europe, such as its refinery in Germany, which uses Russian crude, at a heave expense to PDVSA.

Tour Brings Venezuelan Rhythms and Styles to American Ears

BERKELEY, Calif. -- When petroleum prices hit record highs last year, Venezuelan President Hugo Chavez made headlines by selling more than 12 million gallons of home-heating oil to low-income Americans in the Northeast at below-market prices.

Now Venezuela is offering Bostonians an option on another natural resource: The Venezuelan Sounds 2006 tour, which includes concerts in Washington , D.C., New York, Berkeley, and Puerto Rico, showcases some of the South American nation's finest musicians. It comes to the Regattabar on Wednesday.

The Boston portion of the festival features two stellar bands led by Venezuelan players who have settled in the United States. On the bill are multi-instrumentalist Jackeline Rago and her band Snake Trio, based in the San Francisco area, and Boston-based pianist Leo Blanco's jazz trio with bassist Peter Slavov and percussionist Jamey Haddad.

While the heating oil program was widely seen as an effort by Chavez to thumb his nose at the Bush administration (the blustery Venezuelan president has been outspoken in his opposition to US economic policy in Latin America) Venezuelan Sounds is a rather more sincere initiative to increase awareness of the country's largely untapped musical riches.

``Venezuela is full of wonderful music and artists, and there are more than 150 different rhythms throughout the territory, so we should try to project our culture abroad," Berklee graduate and Venezuelan cultural attache Patricia Abdelnour says from Washington. A violist and recording engineer who graduated from Berklee in the mid-'90s, Abdelnour has played a leading role in promoting Venezuelan music in the United States since she launched the Venezuelan Sounds festival in 2004.

``Music can help build bridges with the embassy and the Venezuelan community in the US," Abdelnour continues, ``and between our countries."

It's certainly true that the music of Venezuela is one of the great cultural treasures of the Americas, a fabulously rich tradition in which the intermingling of indigenous, European, and West African influences has yielded an array of musical forms.

So why isn't it better known outside of South America?

One reason is that until recently, most Venezuelan musicians tended to stay close to home.

``Venezuela is a country where people consume what they produce, including music," says Rago in an interview after a Snake Trio performance in Berkeley.

``Our artists are famous within the country, and we're really proud of our musical roots. It's something like Brazil or Cuba on a smaller scale. But meeting a Venezuelan musician outside of the country is rare, because there are few of us here."

Rago, who was raised in Caracas, started playing mandolin at age 5 and grew up performing in folkloric ensembles. She moved to the Bay Area to continue her music studies in 1982, eventually graduating from the now defunct Music and Arts Institute of San Francisco, where she majored in classical mandolin.

Although she's a master of Afro-Venezuelan percussion, her main instrument is the cuatro, the four-string national instrument of Venezuela that she points out should also be considered a percussion instrument.

``It's a little Renaissance guitar from the Andalusian part of Spain, and it's traditionally been used in Venezuela to accompany other instruments," Rago says.

Rago and Viscuso, best known as a founding member of the world jazz band Wild Mango, founded Snake Trio in 1996 with the goal of blending traditional Venezuelan forms and jazz. They produced and recorded an excellent album in 2000, ``The Dance of the Snake," but the trio took a deeper turn during a 2002 trip to Venezuela, where it recorded rhythm tracks with a battery of top Venezuelan percussionists.

The resulting album, ``Light the Candle," captures the Snake Trio's latest incarnation, which is built on the sinuous bass work of Saul Sierra, a Berklee alum who hails from Mexico City. With a rhythmic palette that encompasses much of Latin America, from Venezuela's joropo beat to Dominican merengue, the group has developed a captivating repertoire of original material and classic jazz compositions such as Wayne Shorter's ``Footsteps," Charles Mingus's ``Goodbye Porkpie Hat , " and John Coltrane's ``Mr. PC."

``We try to bring the different cultures together," Viscuso says. ``We don't play traditional music. I bring in my influences, and Saul brings in his. When we played at functions in Venezuela, the people were impressed. Jackie's one of the few musicians doing this kind of thing."

Rago's evangelical approach to her country's music made her a regular presence at the Venezuelan embassy, where the culture-minded ambassador has converted a wing of the building into an intimate concert hall. She's performed in every Venezuelan Sounds festival and returns to Venezuela often to continue studying folkloric styles.

``Jackie's prodigious," Abdelnour says. ``She's in love with Venezuelan music, rhythms , and traditions, and that comes through whenever she's playing or talking." 

Original Source: Boston Globe

Venezuela Criticizes U.S. Efforts to Undermine Venezuela and Cuba

Caracas, Venezuela, July 12, 2006 —Venezuelan President Chavez and other high level government officials sharply criticized U.S. efforts to undermine both Venezuela and Cuba. Yesterday, Chavez directed his comments against a Bush administration report, which claims that Venezuela is providing funds for Cuba to “subvert democratic governments” in Latin America. Vice-Foreign Minister Mari Pili Hernandez also attacked the Bush administration, but on the issue of its efforts to prevent Venezuela from acquiring a temporary seat on the UN Security Council.

Recently U.S. Secretary of State Condoleezza Rice presented President Bush with a report on “Assistance to a Free Cuba,” which claimed that Cuba “is using money provided by the Chavez government in Venezuela to reactivate its networks in the hemisphere to subvert democratic governments.” The report goes on to specify exactly how the U.S. government should help organize a “transition government,” once Fidel Castro dies.

Chavez reacted angrily to the report, saying “This is what I say to U.S. imperialism: Now is when Venezuela will support the Cuban revolution, because there will be no empire, no matter how powerful it believes it is, that could demoralize us.” Chavez went on to say that the report represented yet another threat that the U.S. has launched and that it also affects Venezuela because the plans also aim to stop any country that supports Cuba.

Instead of working on transition plans for Cuba or Venezuela, the U.S. ought to prepare for its own transition, said Chavez, because, “this century will put an end to the U.S. empire.”

Chavez also confirmed the Caribbean countries’ support for Venezuela as one of the ten temporary members of the UN Security Council. The Prime Minister of Antigua and Barbuda, Baldwin Spencer, visited Venezuela a few days ago and said that he ratifies the Caribbean Community’s support for Venezuela.

Vice-Minister Says U.S. Lobby Against Venezuelan Seat is Illegal

Vice-Foreign Minister for North America, Mari Pili Hernandez, made extensive remarks today about Venezuela’s effort to secure a UN Security Council seat and U.S. efforts to prevent this. According to Hernandez, U.S. efforts to prevent Venezuela from acquiring the seat are illegal.

The U.S. “has launched a furious campaign on an international level against the aspiration of our country to form part of the Security Council,” said Hernandez. “It cannot be accepted that the United States uses its power and its position within the Security Council to make a campaign against the legitimate aspiration of Venezuela,” she added.

Venezuela should have a seat because, “it has demonstrated that it is an independent country that does not accept pressure from any state,” affirmed Hernandez. Also, Venezuela “respects the sovereignty of all nations,” in contrast to the U.S.

The country the U.S. supports for the Security Council vacancy is Guatemala. If no consensus can be reached within the Americas region, then the decision for which country gets the sear goes to the UN General Assembly, where a two-thirds vote is needed to win. The decision about the open seat will be made in October.

See also:

• Venezuela Gets Nod for UN Seat from Caribbean Nations
• U.S. Is Aiming to Block Venezuela's Bid for U.N. Role

Venezuela’s Economy Posts Strong First Quarter

Last week the Central Bank and National Statistics Institute released quarterly figures to suggest Venezuela’s strong economic performance continues in 2006. Inflation climbed in June but remains near historic lows, as does unemployment. While strong economic growth the first quarter of this year added to international reserves and consumer confidence.

The nation’s unemployment rate fell in June to 9.7%, according to the National Statistics Institute (INE). The number reflects a two-percentage point drop from the same month last year, and down half a point from May. In 2005 the jobless rate declined by 6.6 percentage points to finish at 8.9 percent in December. The government does not include part-time workers or those in state-funded social programs in its employment surveys.

The Central Bank of Venezuela (BCV) revealed inflation figures for June rose to 1.9%, a 13-month high up from 1.6% in May. Price increases in the food and beverage sectors contributed to the increase. As did the 66% increase in government spending the first four months of the year, which pushed up the money supply further adding to inflationary pressure. Still, the first quarter numbers stand at 5.5%, the lowest since 1986. The annual rate stands at 11.8%, up from 20-year lows of 10.4% in May. The government has set inflation targets of 10% for the year, a figure not reached in Venezuela in decades. Inflation for the whole of 2005 was a reported 14.4%.

Despite the recent increase in inflation, consumers continued to show great confidence in the economy. According to the Venezuela Automotive Chamber (CAVENEZ) new car sales in June rose 38.5% over the same month in 2005, and 13.2% over May sales. A total of 28,968 new cars were sold in June, a strong indicator of solid economic health and consumer confidence.

Moreover, the economy as a whole continued to post remarkable growth. The Central Bank reports the nation’s economy grew at 9.4% in the first quarter of this year and international reserves increased to over $32 billion. The Venezuelan economy grew at 9.3% in last year.

Even with inflation climbing in June, Venezuelans remain confident in the booming economy. According to recently released figures for the first four months of 2006, the Venezuelan economy continues astounding growth, with reserves up, and unemployment down.

Venezuela to Compensate Campesino Families for Assassinations

Caracas, Venezuela, July 10, 2006--The government of Venezuelan President Hugo Chavez decided today to set aside $10 million for a compensation fund for the families of campesino (peasant) leaders who have been assassinated in the past seven years in the course of Venezuela's land reform program. Peasant organizations say that over 170 peasant leaders have been murdered by assassins hired by land owners.

Elias Jaua, the Minister for Agriculture and Land, made the announcement about the new fund today, at the conclusion of a cabinet meeting.

The $10 million will go towards the first 54 families that the country's human rights defender office has identified as victims of the land struggle. The money will not go directly towards the families, but rather towards projects that will improve the families' standard of living and to make sure that "those guilty for the killings pay for their crimes," said Jaua.

"What will definitely be achieved is justice at least with regard to the well-being of the families of those who were murdered by landowners," added Jaua.

A few months ago the Human Rights Defender. German Mundarain, submitted a report on the progress in the prosecution of the assassinations of campesino leaders. According to this report, there have been 54 contract killings of campesino leaders between 1999 and 2006. 72% of the cases are still in investigation, 18.5% are in an intermediary phase, and 9.2% have gone to trial. In addition to the 54 dead, there have been 21 wounded and 41 death threats.

Venezuela initiated an ambitious land reform program in 2001, which was one of the main policy disputes with the opposition, which spurred the 2002 coup attempt. Since the start of the land reform, about 300,000 families or 1.5 million Venezuelans have received plots of land.

While most of the land reform land has been state-owned, land reform beneficiaries often enter into conflict with large landowners because many times large landowners lay claim to land that the government says belongs to the state. Peasant leaders are often killed in the ensuing conflict by assassins who charge very little to carry out murders.

Venezuela, Panama, and Colombia Inaugurate Gas Pipeline Construction

Caracas, Venezuela, July 10, 2006—On Saturday, the presidents of Venezuela, Hugo Chavez, of Colombia, Alvaro Uribe, and of Panama, Omar Torrijos, inaugurated the construction of a gas pipeline, which will run from Colombia’s Guajira region to the Venezuelan city of Maracaibo in Zulia state. The pipeline will have a length of 225 kilometers and will at first supply Venezuela with Colombian gas and will later reverse direction for gas exports to Colombia’s pacific coast.

Once completed in May 2007, the pipeline is designed to transport 150 million cubic feet of gas per day (mcf/d) to Venezuela, to cover Venezuelan demand for natural gas. However, once Venezuela’s own gas production and transportation capacity increases so as to be self-sufficient, around 2011, 200 mcf/d will be transported to Colombia. Later, the pipeline will be extended towards Panama, when the total transport capacity increases to 1,000 mcf/d.

Venezuela’s President Chavez, called the pipeline “a central nerve, a locomotive for integration” and emphasized that Panama is being incorporated into the project. Chavez also reiterated his support, first expressed a few weeks ago in Panama, for Venezuela to construct a refinery in Panama.

Colombia’s President Uribe also praised the project, saying that this kind of agenda is “giving fruits for a deeper integration [of Latin America].”

After making the first soldering of the pipeline, the presidents signed a memorandum of understanding that committed them to continuing the connection to Panama. Panama’s President Omar Torrijos thanked his hosts for the invitation and said that this project is “a commitment with our peoples, in order to pay off the social debt.”

The pipeline’s total cost will be $335 million, of which 10% will be dedicated towards investments in the regions around the pipeline, in the areas of health, education, culture, and sports.

Also, the project will create an estimated 6,000 jobs in Venezuela and 4,000 in Colombia, according to Chavez.

Along with the gas pipeline, Venezuela and Colombia will lay a fiber optic cable, so as to improve communications between the two countries.