Call 1-877-JOE-4-OIL

If there are Venezuelans going through horrible darkness, as surely there are, and they can't find a job, and the prices of the essentials only go up, perhaps they should give a little call, asking for a little help, to former United States Senator Joseph P. Kennedy II, at 1-877-JOE-4-OIL

The JOE that, by way of a “Citizens Heating Energy Program”, is dedicated to a fabulous job of helping the poor in various American cities.

On the website of that organization we find, for example, the following testimonials:

Laura Austin: "Throughout the entire process I found a staff who was attentive and able to listen to our misfortunes and always ready with helping hands."

Tonya Wilson: "God uses people and organizations like yours as a blessing to those in need and I thank you from the bottom of my heart. Thanks to you, we are able to stay warm on cold winter nights."

Karin Paine: "Four days ago, I ran out of oil. Two days later, I received my voucher. It brought tears to my eyes because now I can continue to recover from very serious surgery and not worry about how to stay warm."

However, the point is that according to the expensive television spots that are broadcast every so often, this program is announced as financed by Citgo, the Venezuelan people and by the currently absent Cacique on duty... and that last thing makes me angry. Even when you accept that Citgo may have an advertising interest, when it comes down to it, the program is financed exclusively by the Venezuelan people.

The absent Cacique, as a Venezuelan citizen, what he has put in is only about a thirty millionth part of our barrels and, the Venezuelan people, everything, everything else. So, what right does that Cacique have to do so much publicity for himself with what belongs to others?

Am I complaining about that JOE? Not! He also takes advantage of this program for personal advertising, but who can complain about someone helping their own, even when is is done at the expense of others.

During the week Venezuela has devalued the official rate of the bolivar, which is not the same as a devaluation of the bolivar, since that presumes that such official rate was a reflection of the real value of our bolivar, and that is not. The bolivar rate is the result of dividing all the bolivars used in Venezuela by all the dollars purchased. The fact that we do not know that rate, because some do not want it to be known, does not make it any less certain. Moreover, reducing what is given away via the official rate may even result in a revaluation of the real bolivar.

And another lie that circulates is the one that says that the poor are the ones who will suffer the most from the devaluation of the official rate, and as if the poor were the ones who would have benefited the most from an exchange system, which could have been justified. In a moment of acute crisis, it is maintained only on account of its usefulness to extort favors, and allow enrichment that is definitely not that of the poor.

I had always been a defender that the country should operate with its own currency, since not doing so would mean sacrificing a very useful monetary policy instrument in times of crisis. However, the continued ineptitude of our governments has led me to think that perhaps we should become dollarized, or since the dollar may also be somewhat doubtful, distribute our oil results in gold morocotas among the citizens.

Translated from El Universal

https://www.citizensenergy.com/meet-the-team

 

Oil, Citgo, and gov't policies

An interview by Daily Journal’s Leopoldo Taylhardat 

The DJ recently interviewed columnist Per Kurowski on his views regarding the Venezuelan and international oil industry. We caught up with him with his foot virtually on the plane's steps for a flight to Guatemala. He was committed to a week's work there for the Inter-American Development Bank (IADB).

As usual with him, his statements were clear and frank. Per has been writing well-balanced opinion articles for the DJ for several years now.

PK: "The OPEC Summit Conference results? In general, very good. Results will depend on the unity of OPEC and its decision to defend its interests in very specific areas such as the fiscal and environmental discrimination against oil.

“I hope I'm not seen as ungrateful, but it looks to me as a poor beginning when we give so much publicity to the donation by the European Union of 250 million euros, almost one year after the Vargas disaster, because we all should know that even the least discrimination against our oil will, in the mid-term, easily save the EU that amount - through volumes and prices - in one-month additional revenue. 

“The good future results for Venezuela we may get from OPEC depend mainly on how we push the organization's lazy bureaucrats, normally afraid of the risks involved in any change. Let's not forget that the high-taxes problem has been affecting us for several years. Why didn't they point it out before? 

"About the San José Pact I can't say much. I'm not familiar with the subject but-and it seems to be an international procedure -any country has, I thinkthe right to use any strength it may haveto defend its interests in any way it feelsreasonable. At least it seems politicallyproper when it's done by the world's superpowers. The New York candidate to Congress, J. Lazio said, during a debate with Hillary Clinton: ... ask our allies and those who went to bat in the Desert Storm War, to think about our needs ...'- or words to that effect. So, if someone can send some of his own people to fight and die for the oil, what's wrong with giving out some oil, out of good will or, as some people claim, because of foolishness? 

"The volume of oil involved in the San José Pact is very small, so selling it at discount to other poorer countries may be a minor sin, if anything. Except when it is used for purely political reasons - now that would be a major sin.”

"On the other hand, Venezuela need not feel guilty for the difficulties other poorer countries may experience due to increasing oil prices. We are innocent infants compared to those countries selling renewable products such as medicines at prices thousands of times their cost, including raw materials and production. Let's stop sucking our fingers ... 

“Let me elaborate some more on this subject that, after all, is in fashion. The discussion over "fair prices" is, in my opinion, irrelevant. As long as oil is needed and scarce, its price will be high. If it becomes abundant and could be replaced by some other energy source, its price will go down. Any reference or comparison to the prices of other products is irrelevant, because regularly and naturally, the prices of any product or group of them can go up while others fall.

“Fairness is, to me, a matter of participation: the products obtained from a barrel of crude oil are sold in Europe for the equivalent of $200. Laborers housewives, teachers, and so on must pull out of their pockets that $ 200 and pay in cash. So it is evident that this is the market price for it. In other words, oil has never before been so valuable.

"On the other hand, we the oil owners and producers, we do not get much for a barrel of oil. Our share is only about $30 - or 15 percent - out of the $200. The rest is shared by refiners, transporters and distributors, who get $25, and the ever-hungry European government that grabs up to $160 - 80 percent.So it's unfair for the country selling that non-renewable resource to get only percent of the market value. It's like selling our house and being obliged to pay the real estate office over 80 percent of the price." 

Will the current Venezuelan government's oil politics contribute to change the world oil panorama? 

"I'm not sure. It depends on the government's capacity to strengthen the country and to encourage the nation to defend our interests. All our interests, not only the oil. Since consumer countries do know how to defend their interests, including oil, we must be continuously defending ours. Not just spasmodically. Results will depend on the strength of will displayed by all of us. What cannot be denied is that the oil politics promoted by our current government were not only necessary, they were taken just in time, at the eleventh hour." 

Shouldn't we emphasize conservation over production? 

"We must either preserve or sell our oil. It's up to us. What we must not do is fall into the death trap of producing while the price stays above the cost of extraction and shipping – that is, accepting as valid the idea that we must be satisfied as long as the oil pays for its production and transportation. 

"I am definitely against that. The nation must obtain a higher level of added value. And that's what we have OPEC for. If we get only 15 percent on the selling price of our product, then we are such poor users of our buried-for millions-of-years-wealth that we deserve having the wells locked up so future generations can benefit from oil. That also applies to the use of oil revenues. If we continue being as inefficient as in the past, we don't deserve to benefit from the nation's oil.” 

The appointment of a Venezuelan as " Citgo president is it convenient or not? 

"A Venezuelan as president of Citgo? Why not? Of course, it depends on who that Venezuelan is. Personally, I believe the Venezuelan state must control 100 percent of the exploration, extraction and basic refining operations. This is the only way it can have the possibility for using it as a weapon for geopolitical negotiations or ensure its value via, for example, OPEC. Until someone convinces me of something different, I insist that anything else the Venezuelan state tries to do with oil means a loss or a net reduction of the benefits brought by the first phases of the operation

"Because of that and the fact that I have seen the corporation's reports, I still can't understand the economic reasons for having bought and kept Citgo. There is evidence in the reports that it's being subsidized by PDVSA. 

“And, for those who argue so much in favor of privatizing PDVSA, I challenge them to make an IPO for Citgo, subject to their obligation to purchase oil products at market prices."

PS. I am still for Venezuela getting rid of Citgo

The Petroleum Ombudsman revisited

Almost one year ago, I published an articled titled “The Petroleum Ombudsman”. In this article I raised the need to institutionalize the figure of a qualified entity that could satisfy the requirements of the Venezuelan citizens of objective and independent information and analysis related to the country’s oil industry.

At that time, my observations were initially driven by a desire to know what effects on the industry the vast restructuring of PDVSA’s organization would have. In my opinion, there was a risk of centralization of the company.

Today, upon reviewing the myriad of questions PDVSA’s actions have raised in the Venezuelan society over the past year, I am even more convinced that the matter of the ombudsman for the petroluem sector must pass from being a mere suggestion to being an outright and urgent requirement. Let us see some examples:

The Oil Opening was justified by a lack of availability of resources to continue PDVSA’s investment plans. All of the funds raised by the opening, however, went directly into the Nation’s fiscal coffers. Who can explain that?

Without the slightest remorse, the National Executive requested that PDVSA withhold or delay payment of its obligations to local suppliers in an effort to further fight inflationary pressures, thereby becoming just another poor payer. Could this have been the beginning of an interesting swap aimed at sending Mr. Giusti to the Central Bank in return for Dr. Casas?

We are continually bombarded by adds in the press, selling courses and seminars to be dictated by an educational affiliate denominated PDVSA Cied. One single session, from 8 AM to 5 PM costs Bs. 300,000, an evident divorce from the economic realities of the country. When was PDVSA authorized by the country to expand its scope of activities in this manner?

Everyone has been made aware of the dangers of lead in gasoline. The solution for this seems to be of lesser importance than the revamping of an immense amount of service stations which, in addition to dispensing gasoline, are also to sell snacks. Who establishes investment priorities?

If any market is to be considered a captive client for PDVSA, it should be the Venezuelan one. I find it difficult to visualize a supertanker from the gulf trying to pass gasoline through our port authorities with the aim of selling me the concept “Put a camel in your tank”. If this is so, and if PDVSA truly is short of resources, on what basis can they announce a plan to invest US$ 800 million over the next nine years in order to improve their service station network. Why aren’t these resources invested in countries who’s markets we should be conquering?

And while we are talking of PDV, how much did the changes in image and the marketing of a new logo and trademark cost us?

And speaking of logos and trademarks, I haven’t seen any of the large oil companies now coming into Venezuela to participate in the local markets make these changes in order to compete in our environment. In a world of global markets, global coherence would seem to be important. We are all aware of the PDVSA’s important participation in the US markets through its holdings in the CITGO network. Why, then, don’t we support this trademark and market it in Venezuela as well?

By raising these questions, I don’t wish to give the impression that I argue in favor of the Petroleum Ombudsman only to supervise PDVSA. It is also important to note that this office could also launch a vigorous defense of the industry’s interests at times when fiscal pressures are brought to bear by the National Executive. These pressures could ultimately lead to further indebtedness and/or endanger our goose of the golden eggs in many other ways.

If anyone still harbors doubts as to the need for the office of this ombudsman, it should be enough to reflect on the confusion and ado created by the question as to whether PDVSA has or has not legally complied with is fiscal obligations.

PDVSA is a State owned company, headed by Directors and Management designated by the State. We should therefore be able to expect a certain confidence an adherence by the same with the norms handed down by the State. If this were not so, it would seem to indicate a much more serious problem, one that cannot be solved merely by establishing a special SENIAT office within PDVSA.