Chavez secures South American markets for his oil in South Am..then tells George Bush to Fuck Off

Venezuela’s President Chavez spent 4 days on trip to key allies in the Southern Cone Economic Zone (Mercosur) countries, consolidating his vision of a South American energy structure… and according to his allies north of the Gulf of Mexico, reeking of cheque book populism…. A method of foreign influence they are familiar with.

In Uruguay, Chavez met President Tabaré Vazquez, and signed ten agreements, including the Social Charter of the Americas which is a document the Venezuelan government has been drafting, which, if adopted by the OAS, would commit all member countries to basic social rights, just as the OAS democratic charter commits them to the upholding of political rights.

An important agreement is to promote PetroSur—the continent-wide oil company Chavez visited , La Teja, refinery near Montevideo, which Chavez said Venezuela would help bring capacity, to process 50,000 barrels of Venezuelan crude per day. The aim is to double production and at a cost of US$600 develop it to refine Venezuela’s extra-heavy crude from the Orinoco Oil Belt. A vital part of Venezuela’s commitment to Uruguay would be to guarantee Uruguay’s oil supply for the next 25 years.

In Buenos Aires, Argentina, where he met the Patagonian, Peronist President Nestor Kirchner, he and Chavez signed agreements for Venezuela’s supply of fuel oil and gas and for Argentina to construct tankers for the Venezuelan oil company’s fleet. The ship building agreement, which will generate at least 1,500 jobs, is for four tankers, worth $200 million. The first tanker will be named Eva Peron.

Chavez also went to, Rio Santiago, where a Petroleos de Venezuela (PDVSA) tanker is being repaired and where the new tankers will be built. Chavez Frias has offered to send more tankers.

President Kirchner praised Chavez Frias for the purchase of US£800Mn of Argentinean bonds, saying the gesture of solidarity will not be forgotten.

Chavez Frias says the bonds should be called the Kirchner Bonds and the purchase is a sign of Venezuela's coherence in its regional integration discourse.

It must be remembered that Argentinean President Nestor Kirchner revoked a degree on obtaining office in 2003 that prohibited the extradition of Argentine officials accused of torture or murder during the 1976-83 military dictatorship's "dirty war" against leftist opponents.

In Brasilia, Chavez met President “Lula” da Silva to further the agreements already made to increase trade between the 2 countries from US$800 Mn in 2004 to US$3 Bn in 2005.

On the joint development of energy, plans for the Pernambuco refinery to handle Venezuelan crude were moved forward, and construction on this refinery should begin before the end of 2005 although the precise site location has to be decided.

The building of a gas pipeline connecting Venezuela’s Caribbean coast with Brazil, and agreeing for Brazil’s oil company Petrobras the opportunity to produce oil in Venezuela’s Orinoco Oil Belt, he world’s largest reserves of extra-heavy crude were furthered in the attempt to integrate the continents energy integration. “We want to give priority to Latin America to exploit this immense oil wealth,” said Chavez.

Chavez came to the defence of his ally who is currently facing charges of several members of his government have been accused of corruption. “I am absolutely certain that Lula is an honest man, a great partner…,” said Chavez, adding, “I feel that there is an action of the old political class, of the Brazilian right … it is a massive attack against the president of Brazil and this must come from some planning centre here within Brazil or—watch out—from outside the country.”

As a result Chavez was able this weekend in a speech at a youth festival in Caracas (see pic),. to threaten to cut off oil exports to the United States, and denounce the "aggressive" actions of the U.S. government against Venezuela, threatening that Venezuelan oil "instead of going to the United States, could go elsewhere."

Tensions rose when Venezuela recently stopped assisting the U.S. in their "War against Drugs". (Another one they seem to have lost)The US response wasto cancel the military visas of Venezuelan military personnel, working with U.S. anti-drug agencies. Venezuela then deported U.S. Drug Enforcement Agency (DEA) officials.

Venezuela controls the largest oil reserves in South America, making it the world's fifth largest oil producer and exports a vital 1.3 million barrels a day to the United States. That's 2 tankers every day.

Chavez has George "over a barrel"...1.3 Mn of them every day.....and George doesn't like it.