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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
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