[NYTr] Chavez's Regional Petro-Diplomacy

[All the News That Doesn't Fit]

The Los Angeles Times - August 8, 2007
http://www.latimes.com/news/nationworld/world/la-fg-chavez8aug08,1,1745720.story


Chavez's petro-diplomacy tour

By Patrick J. McDonnell

BUENOS AIRES -- Venezuelan President Hugo Chavez heralded new economic
and energy ties to Argentina on Tuesday as part of a renewed
petro-diplomacy initiative highlighting his bid for regional leadership.

Opening a four-nation South American swing, Chavez signaled his
oil-rich nation's willingness to purchase up to $1 billion in Argentine
bonds and help fund a $400-million gas plant designed to meet this
country's growing energy needs.

Venezuela's oil-funded largess is expected to be on display during
planned stops in Uruguay, Ecuador and Bolivia, all of which are
expected to forge new energy deals with the government in Caracas.

The trip underscores Chavez's strategy of doling out funds and fuel to
an energy-starved region to win or bolster friendships, even as he
remains a divisive and controversial figure in much of Latin America.

Opposition leaders here in Buenos Aires immediately assailed President
Nestor Kirchner's economic reliance on Caracas, which has purchased
more than $4 billion in Argentine bonds in recent years and has bailed
out a financially ailing dairy industry.

"Since Kirchner couldn't fill the financial pothole, now he's asking
his usurious Uncle Hugo to help him," said Ricardo Lopez Murphy, a
right-wing candidate in October's presidential election.

Kirchner, a moderate leftist, has welcomed Chavez's aid as a key to
Argentina's continuing recovery from its 2001-02 financial crisis. Much
to the chagrin of the Bush administration, Kirchner has remained a
steadfast Chavez ally. "Venezuelan [natural] gas is going to have a
direct importance in the Argentine economy," said Kirchner, referring
to a deal for a new liquefied natural gas plant here.

Venezuela's latest aid package comes at an important time, analysts
said, because Argentina has been suffering energy shortages during a
cold Southern Hemisphere winter and has been hard hit by volatile
financial markets.

Though Chavez's visit to Argentina was generally low-key amid the
presidential campaign here, Chavez stressed one of his favorite themes:
Latin American unity.

"We need to unite, and the North American empire doesn't want us to
unite," he told reporters. "It is a battle of interests, but we will
win this battle."

The Bush administration has labeled Chavez the biggest impediment to
Latin American economic integration. President Bush's visit to the
region in March was widely viewed as an effort to counter Caracas'
spreading influence, which has been amplified by the high price of oil.

But Chavez's vision of leading a united Latin America has suffered
setbacks in recent months, notably the fierce protests about Caracas'
controversial decision to shut down the broadcast network RCTV, a
frequent Chavez critic. A miffed Chavez told lawmakers from Brazil,
Chile and elsewhere who criticized his actions to mind their own
business.

In addition, the Venezuelan president has recently sent what amounted
to an ultimatum to member nations of the South American trading bloc
known as Mercosur, saying his government would withdraw support if not
granted full membership status. Some critics see a thwarted Chavez
seeking allies in Iran and elsewhere as the regional leadership role
falls to Brazilian President Luiz Inacio Lula da Silva, who is
currently on a swing through Mexico and Central America, cementing
biofuel agreements and other deals.

"There's a growing isolation of Chavez in South America and in the
world context," said Jorge Castro, a political analyst here. "That is
linked to the parallel political and economic strengthening of Brazil."

After leaving Argentina, the Venezuelan president arrived in Uruguay on
Tuesday evening for a stop meant in part to mend strained ties with
President Tabare Vazquez. Vazquez, another moderate leftist, didn't
appreciate Chavez's anti-Bush tirade in Buenos Aires in March, just as
Bush was heading to Uruguay.

But Uruguay is reported to be in line for discount purchases of about
40,000 barrels a day of Venezuelan crude.

                                  ***

BBC News - August 8, 2007
http://news.bbc.co.uk/2/hi/americas/6936201.stm

Chavez offers LatAm energy pact

Venezuelan President Hugo Chavez has pledged to guarantee the energy
needs of his allies in Latin America.

Speaking in the Argentine capital, Buenos Aires, he announced the
signing of what he called an "energy security treaty" with Argentina.

Mr Chavez said he intended to sign similar treaties with Uruguay,
Nicaragua, Ecuador and Bolivia.

Venezuela regularly uses its large oil and gas reserves as a tool to
help broker deals with other countries.

The deal with Buenos Aires came at a good time for Argentina - which is
currently suffering a severe winter and fuel shortages.

'Dracula' jibe

Mr Chavez used a speech at the end of his trip to Argentina to launch a
verbal attack on Washington.

"The United States has 5% of the world's population, but it consumes
more than 20% of the energy used in the planet," he said.

He described the US as having an "insatiable voracity", before
comparing the country to Count Dracula - sucking more than its fair
share of fuel from the world's reserves.

"The US has a very serious problem. Its oil reserves won't last for
many more years. It has used up its own reserves, and it has used up
the reserves of half the world."

Mr Chavez said the country's insatiable appetite for oil had led it
many times to impose its will on Latin America at the point of a gun.