Petroleum

Aug
29
2012
Posted by
admin
Comments

Explosion at Oil Refinery Raises Concerns about PDVSA’s Infrastructure

Amuay refinery explosion Explosion at Oil Refinery Raises Concerns about PDVSAs Infrastructure

Courtesy of: AFP / Getty Images

Early Saturday morning, a massive explosion occurred at Venezuela’s largest oil refinery, killing 48 and injuring 80, stopping production, and rocking the nearby town.

Residents reported smelling gas the night before, but many thought nothing of it, as the odor had occurred many times before. This time, however, was different. At 1 a.m. an explosion engulfed the refinery and also destroyed homes in the town of Amuay, injuring residents who were still sleeping. Two hundred homes were damaged by the blast and 33 families were displaced.

The fires burned for three days, causing several more oil tanks to explode, and were only extinguished yesterday. The refinery has not resumed production, and may not do so for several more days. Concerns remain that once production resumes, the fires may flare up again. Investors, meanwhile, worry that the halt in production from one of the world’s largest refineries could drive up prices.

President Hugo Chávez arrived on the scene Sunday, roughly a day and a half after the explosion first occurred, declaring three days of mourning for those killed in the accident. His initial response was to deny the residents’ reports of the gas leak, telling a reporter that it was “impossible” that there was any deficiency in maintenance at the plant. However, El Nuevo Herald reports that documents from a reinsurance agency that performed an inspection of the plant in March detailed a long list of maintenance problems and safety issues.

Chávez has promised a full investigation though, in light of his original remarks, some question how thorough it will be or whether it will be made public.

The accident calls attention to the decay of the PDVSA’s infrastructure, which has seen a steady decline in production since Chávez took power in 1998. Although Venezuela possesses the largest proven oil reserves of any nation, it lacks the infrastructure to extract and refine this oil safely and efficiently, a shortcoming which has caused serious problems for its economy.

The event couldn’t come for a worse time for Chávez, as new polls show opposition candidate Henrique Capriles with a lead in the polls. It also comes on the heels of an embarrassing moment last week when Chávez was blindsided by protestors in a national broadcast as well as another large prison riot, on which Chávez has refused to comment.

Upon arrival at Amuay, Chávez expressed solidarity for the victims and then stated, somewhat oddly, that “the show must go on.” Indeed, with just over a month before the presidential elections, Chávez probably wishes he could put this all behind him.

 
Aug
27
2012
Posted by
admin
Comments

ICYMI: Capriles has slight edge in new Venezuela election poll

Reuters
August 24, 2012
By Marianna Parraga and Diego Ore

capriles radonski ICYMI: Capriles has slight edge in new Venezuela election poll

Courtesy of: Reuters / Carlos Garcia Rawlins

A new poll in Venezuela put opposition candidate Henrique Capriles in front of Hugo Chavez for the first time before the October 7 election, contradicting most surveys that give the president a lead of more than 10 percent.

The Consultores 21 poll showed Capriles with 47.7 percent versus Chavez with 45.9 percent, overtaking the socialist leader since the group’s survey in June gave Chavez a 3.4 percent lead.

The poll, which was prepared for private clients and has a 3.2 percent margin of error, was obtained by Reuters on Friday. Its findings were confirmed by Consultores 21.

Opinion polls are controversial in Venezuela, where both political camps accuse each other of commissioning biased surveys. Most well-known pollsters give the president, who wants to extend his 14-year rule, a solid lead.

But Chavez, 58, has not had everything his own way.

Three cancer operations and sessions of chemo and radiotherapy during the last year mean he has not been able to match the tireless campaigning of the 40-year-old Capriles, who has been criss-crossing the South American country for months.

Since the formal campaign period began on July 1, the president has attended more than a dozen rallies, in addition to near-daily appearances on state TV. Normally, Chavez arrives at the rallies riding atop a truck, waving to cheering supporters before speaking from the stage.

But on Thursday night at an event in the eastern state of Sucre – perhaps mindful of opposition taunts that he seldom has physical contact with voters anymore – Chavez waded into the red-clad crowd, hugging children and embracing old women.

“The bourgeois say they are going to win, but they know they’re losing and it is impossible to reverse a gap (in the polls) of not less than 15 points with less than a month and half to go,” he said.

This election has turned into the toughest of Chavez’s political career, with his illness constraining his ability to hit the streets, and a newly-united opposition coalition backing a single, energetic candidate for the first time ever.

At stake is control of Venezuela’s huge oil reserves – and the fate of the leftist political movement in Latin America headed by Chavez, whose criticism of the United States “empire” has made him one of the world’s best-known politicians.

The local blogosphere was set alight this week after a “cadena” by Chavez – speeches that all local broadcasters are obliged to carry live – ended abruptly as striking workers from a state company could be heard in the background.

Chavez scoffed at suggestions by the opposition that the broadcast was halted because of the embarrassing disruption.

“To those who speculated that I was hospitalized, that the workers came up onto the stage, no,” he told reporters. “What happened was, the sound went and I waited for about two minutes. A cadena with no sound is pointless, so I ended it.”

(Additional reporting by Eyanir Chinea; Writing by Daniel Wallis; Editing by Vicki Allen)

To read this article on Reuters, please click here.

 
Aug
17
2012
Posted by
admin
Comments

In Case You Missed It… Articles Roundup Week of 8/17/12

Venezuelan Ministry of Petroleum In Case You Missed It… Articles Roundup Week of 8/17/12

Courtesy of: El Universal

This week: Growing concerns about food shortages and all-time lows in agricultural exports heap pressure on the Chávez campaign. Compounding matters, OPEC reports that Venezuelan oil production has also seen a decrease — a bad sign for a debt-ridden nation that relies on oil as its chief source of revenue. An American man was apprehended trying to cross the border from Colombia; Venezuelan officials call him a “mercenary,” as Chávez stokes fears by announcing that he will prepare the nation for an American “invasion” by raising a one million man strong guerilla army. After a period of confusion, American officials were able to meet with the detainee. Finally, to facilitate Chávez’s election-year increase in spending, the friendly National Assembly approves an increase in borrowing authority.

Venezuelan food shortages bode ill for Chavez’s re-election, USA Today

A year ago, Romero’s fields overlooking the Tacarigua Valley were neatly lined with green onions, peppers and tomatoes.

Venezuela plans a million strong ‘guerrilla army’ against US invasion, The Telegraph

“Plan Sucre” – apparently crafted with input from close ally and fellow US foe Cuba – covers the legal, logistical and other angles necessary to “transform a professional army into a guerrilla army,” Representative Maria Corina Machado told El Universal newspaper.

Fear of Mercosur weakening Venezuelan chemicals industry, El Universal

The recent entry of Venezuela into the Common Market of the South (Mercosur) is a threat to Venezuelan chemical industry, warns the Venezuelan chemical and petrochemical industry association (Asoquim).

Venezuela Prison Violence Rises, Report Says, AP (Huffington Post, Washington Post)

The number of killings inside Venezuela’s notoriously violent prisons has increased this year even as President Hugo Chavez faces mounting pressure to curtail the violence as he campaigns for re-election, according to a human rights group.

ONGC Sees Start of Venezuelan Project Delayed by Election, Bloomberg

India’s Oil & Natural Gas Corp. (ONGC) expects the start of production at the Carabobo 1 block in Venezuela to be delayed until early next year as the South American country prepares for presidential elections in October.

OPEC: Venezuelan oil production down 2.4%, El Universal

The Organization of Petroleum Exporting Countries (OPEC) has reported that Venezuelan oil production dropped in July.

US Officials Confirm Arrest of Citizen in Venezuela, Wall Street Journal

U.S. officials on Tuesday confirmed that a U.S. citizen has been detained in Venezuela, just days after President Hugo Chavez announced the arrest and suggested the man may be a “mercenary” for the leader’s ideological foe.

U.S. officials see ‘mercenary’ suspect in Venezuela, Chicago Tribune (Reuters)

Two U.S. diplomats on Wednesday visited an American man jailed in Venezuela whom President Hugo Chavez says he suspects of being a mercenary, the U.S. Embassy said.

Venezuela’s Chavez says U.S. given access to ‘mercenary’ suspect, Reuters

U.S. officials will be allowed access on Wednesday to an American citizen arrested in Venezuela on suspicion of being a mercenary, President Hugo Chavez said.

2012 Venezuela’s budget expense exceeds last year total amount, El Universal

The Venezuelan National Assembly authorized on Tuesday USD 768 million for additional credits. Consequently, the extraordinary operations approved during the year increase to USD 20 billion.