Page 4 - LatAmOil Week 41 2022

LatAmOil COMMENTARY LatAmOil

(Photo: Facebook/Petrocaribe)
Venezuela’s overblown

ambitions for Petrocaribe

Barring a change in US sanctions policy, reviving the regional oil and fuel supply group is likely

to prove difficult for a country that cannot easily export oil or keep its refineries in good repair

FOR the government of Venezuela, which holds of Petrocaribe, a group whose member states
socialism as envisioned by the late Hugo Chavez were entitled to secure imports of crude oil and/
WHAT: as its highest ideal, oil is not just part of the eco- or refined petroleum products from Venezue-
PdVSA is reportedly urg- nomic scenery; it’s not just a commodity that can la’s national oil company (NOC) PdVSA on
ing Caribbean states to be used or sold; it also has a political purpose favourable terms. The group’s 17 members, most
strike new Petrocaribe oil and is supposed to serve as an instrument of of which are Caribbean and Central American
and fuel delivery deals. justice, a means of generating revenue that can countries, are eligible to pay PdVSA a portion
be used constructively to uphold the interests of of their bills up front and then finance the rest
WHY: the people. over a period of 25 years. They have sometimes
The Petrocaribe pro- In rhetorical terms, those may be stirring settled their debts in kind, with tangible goods
gramme aims to promote words. In practical terms, though, it is useful to such as clothing and food rather than money.
Chavez-style socialism remember that under Chavez-style socialism,
but also has an economic
purpose. upholding the interests of the Venezuelan peo- The Petrocaribe group
ple typically involved upholding the interests of Petrocaribe has never accounted for a huge
WHAT NEXT: the Venezuelan state. Even so, rhetorical flour- share of global crude oil flows since the signing
Caracas is likely to have ishes do reappear from time to time, as the state of an accord establishing the group in 2005. The
trouble upholding its is fond of scenarios in which it can portray itself group’s shipments to member states (including
pledges unless the US as the defender of the downtrodden and the Cuba, which is not always added to the total
loosens or lifts sanctions. righter of wrongs. count) appear to have peaked at around 400,000
These scenarios can have practical conse- barrels per day (bpd) in 2012 and were signifi-
quences – as in the case of the establishment cantly lower in most years.

P4 www. NEWSBASE .com Week 41 12•October•2022