Chavez proposes to expand oil alliance

[Judi Lynn]

By NATALIE OBIKO PEARSON
Associated Press Writer

Chavez proposes to expand oil alliance

SEP. 29 2:41 P.M. ET Venezuelan President Hugo Chavez said Thursday he is seeking to share his country's oil wealth with every nation in South America, aiming to strengthen ties while offering an alternative to the U.S.-backed Free Trade Area of the Americas.

Chavez says his "Petroamerica" initiative is intended to reach countries across the hemisphere, and that Venezuela has ample reserves to help the region deal with high oil prices for generations to come.

"With this mission of energy integration, Venezuela guarantees petroleum and gas for the South American continent for at least 200 years," Chavez said as he arrived for a South American summit in SEP. 29 2:41 P.M. ET Venezuelan President Hugo Chavez said Thursday he is seeking to share his country's oil wealth with every nation in South America, aiming to strengthen ties while offering an alternative to the U.S.-backed Free Trade Area of the Americas.

Officials have not excluded the possibility that Chavez may also extend new offers of oil sales under preferential terms as he has before.
(snip/...)

http://www.businessweek.com/ap/financialnews/D8CU3B282.htm?campaign_id=apn_home_down&chan=db

[marmar]

1. The rest of the world is realizing they don't need us, methinks...

Even Canada, our next door neighbor, might decide they're better off in the EU.

[katty]

4. BINGO! they don't Need U.S.- America is an obstacle

[tainowarrior]

2. this is all nice and dandy

but the last time a country started selling everything they had under preferential terms (Soviet Union), their economy tanked.

I'm scared for the Venezuelan Revolution. The duty of sharing resources shouldn't fall on one, poor country.

Hugo, remember how Cubans felt when Fidel was sending their doctors to Africa. They felt those resources were needed at home. Don't go crazy, please.

[Judi Lynn]

3. Venezuela has used preferential terms for various Central American

and Carribean countries for years, but this is the biggie, isn't it?

There are two previous contracts with countries called the San Jose Accord, and the Carracas Accord which allow better rates for these poorer countries which have been in effect for quite a while.

I was just thinking after looking at this article that one thing DOES follow these better rates, and that would be, possibly, greater loyalty from the other Latin American countries... Don't know. Is it possible?

[Missy M]

6. Chavez is sharing his resources with other poor countries in SA and...

I don't see a problem with that. I believe Venezuela has the most oil in SA with Colombia next. Do you think he should keep most of it in Venezuela and what good would that do? I somehow can't relate oil exports to sending doctors to Africa.

[tainowarrior]

7. He should sell the oil at the prices it's worth

If he gives it at preferential terms, it's his people who will have to come up with the remainder of the oil costs through taxation, and its his economy that will have to "take the hit" in order to artificially subsidize the oil to poorer nations.

Cuba tried this, and the Cuban people were very angry at the doctor shortages in Cuba while the Cuban army and doctors were in Algeria.

I support Chavez. I support the Venezuelan Revolution. I support his Bolivarian Alternative. I just think that this is something all countries in South america have to work together. My fear is that Chavez overextends the resources of Venezuela, thereby endangering his regime (from domestic anger and protest), and endangering the more important project: the unification of Latin America along progressive lines.

I fear for the Venezuelan and general latin American left revolution that is going on. I want to see it succeed.

The Soviets did the same, helping all the commie poor countries, and they ended up overextending themselves. One country alone couldn't keep afloat the inefficient economies of all the other commie nations. I fear the same happening to Venezuela.

[Missy M]

9. It seems you are getting your info for the Cuban army and doctors...

in Algeria from sites that are less than supportive of Castro. Mainly people associated with Washington DC and the Cubans in Miami. I would hardly say that is an objective source. I cannot find anything on the Cuban people in Cuba being very angry and I don't think Cuba has a shortage of doctors. I still admire Chavez for helping poor Latin American nations with oil and I believe he sells the oil at its worth to countries who are the largest consumers of oil.

[tainowarrior]

10. trust me

I'm the most anti-gusano Miami exile Latino you'll find. The people of Cuba were very disturbed by the revolutionary internationalism of Cuba around the world. They were proud of it, but when hard times hit, they not surprisingly wanted resources back at home. Venezuela, in its goal to make all of Latin America happy, can be overstretching itself. I fear for the revolution there.

[tatertop]

5. There he goes again, doing good works: Viva Chavez!

[Skink]

8. A united South America could easily rise and reclaim their resources

from the Economic Hit Men. I bet Chavez also becomes the number one importer of toyota Prius's. Oil wealth is only a stepping stone.