Adamant: Hardest metal
Tuesday, January 14, 2003

Venezuela oil officials accuse strikers of sabotage

www.planetark.org

VIENNA - Venezuelan oil officials said on Sunday that sabotage at oilfields, refineries and computer systems was causing pollution and preventing a swift recovery in the industry, crippled by a six-week-old strike.

Arriving at an emergency OPEC meeting in Vienna called to deal with the extended Venezuelan stoppage, state oil company chief Ali Rodriguez said the South American country was aiming to supply its minimum supply obligations by the end of January.

Striking executives at Petroleos de Venezuela, many of whom have now been sacked by Rodriguez, say incompetence by replacement workers is to blame for the accidents.

"There has been electronic sabotage and sabotage on valves, because the (strike) campaign has been aimed at causing accidents, and we have to take anti-sabotage measures to start up safely," he told reporters on arrival in the Austrian capital.

Rodriguez, a former secretary-general of OPEC, said the country still aimed to meet its minimum contractual supply obligations by the end of January, but declined to provide any figures on output in the world's fifth largest exporter. Venezuela previously supplied 13 percent of U.S. oil imports.

A full recovery in ouput by the end of February, a previous target, would not be achieved because of the extensive sabotage, he said.

Striking oil company executives, demanding the government's resignation, said crude flows dropped below half a million barrels per day last week, from more than three million in November.

The country's main oil refineries have ground to a virtual halt, export terminals have closed or drastically reduced loadings and long lines have formed at gasoline stations, while Venezuela resorts to importing fuel.

"Internal market distribution is being normalised, we have managed to free up port operations and we have drawn down stocks whose build-up had blocked production," Rodriguez said.

"This has helped a sustained rise in output, so this month we should achieve our objectives," he said without providing details.

"Our objective is to reestablish basic production this month and restart the refineries to satisfy the internal market because we are importing gasoline at prices far above what we sell it at, which is creating losses for the company," Rodriguez said.

In Lake Maracaibo, where Venezuela pumps about half its crude oil, Rodriguez blamed a recent oil spill on sabotage. In the country's largest refinery, Amuay-Cardon, he said striking workers had shut the plant incorrectly, leaving deposits of asphalt and sulphur in some units.

In the smaller El Palito refinery, Rodriguez said a fire last week was caused by a faulty seal which has now been corrected and output there was restarting.

Asked whether oil production would be fully restored by the end of February, Rodriguez said, "Not totally because damage has been very great and we don't know if there has been sabotage in some wells, so we have to be very careful."

Story Date: 14/1/2003

Strike backlash in Venezuela?

www.krnv.com

Caracas, Venezuela-AP -- Some Venezuelan opposition leaders are afraid of a public backlash from the general strike. And they may ask doctors, teachers and small business owners to go back to work. One opposition leader says strikes by doctors and educators could be counterproductive.

There's also concern that small businesses may go under if the strike strategy continues.

The opposition is trying to drive President Hugo Chavez from office -- but he's now taking steps of his own.

Last week he threatened to send soldiers to seize food production plants taking part in the strike. He also threatened to fire or jail striking teachers.

The opposition vows the strike that has crippled Venezuela's oil production will continue.

Copyright 2002 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Washington File

usinfo.state.gov

Q: What's the U.S. reaction to OPEC's decision to increase production, and how much the oil strike in Venezuela is impacting the U.S. economy right now?

MR. FLEISCHER: The President views OPEC's action to increase production, particularly given the protracted dispute in Venezuela, as a welcome step. It will increase global energy supplies and support global economic growth. The President views this as a welcome step.

I'm sorry, the second part of your question?

Q: How much the oil strike in Venezuela is impacting the U.S. economy right now?

MR. FLEISCHER: I think that's a question that I -- you can talk to any number of economists and get any number of different answers about it, particularly given the fact that OPEC is going to take this action that is, as I indicated, a welcome step that does address the situation in Venezuela.

Q: Ari, I have two questions. Just a follow-up on the OPEC decision. Is that enough? What they're doing is enough to fulfill the needs of the American people and U.S. market? And if the U.S. government had asked the Mexican government to sell the U.S. more oil in any event and -- well, in any event?

And my second question is in regard to a Mexican national. This is an article that was published in The New York Post, January the 4th. It's in regards to Salvador Martinez Gonzalez, who used to work at the White House as a supervisor of attendance information for social events. And he came to work to the White House with a fake U.S. passport. And I don't understand how this happened knowing how effective is the Secret Service when it comes to screening.

MR. FLEISCHER: Okay, on your first question about Venezuela, as I said, the President views this as a welcome step that OPEC has taken. It's a significant increase in production. Ultimately, the markets will be the determinant of whether or not it's sufficient or not. But obviously, the President views this as a welcome matter.

On the second issue, I have not had an opportunity yet to take a look into that. I'll try to do so and see if there's any additional information.

Venezuela's Strike Into 7th Week, Threats of Military Move

www.islam-online.net

Chavez has repeatedly warned the armed forces were ready to wage battle in defense of his social revolution CARACAS, January 13 (IslamOnline & News Agencies) - Venezuela's crippling strike entered its seventh week Monday, January 13, amid renewed violence and threats by President Hugo Chavez to beef up military efforts to end the protest that throttled the vital oil industry.

In what has become an almost daily routine, police and National Guard troops fired teargas and rubber bullets to disperse protesters in Caracas and the country's second largest city, Maracaibo, reported Agence France-Presse (AFP).

On Monday, it was Chavez supporters who were targeted by security forces, in Caracas after they hurled rocks at government opponents and in Maracaibo as they tried to stage a protest outside the governor's offices, according to television footage.

The pictures showed a group of people chanting pro-Chavez slogans and hurling rocks at a dozen government opponents who converged at a square in central Caracas for a brief ceremony before a statue of South American independence hero Simon Bolivar.

At least two people, including a National Guard member, were visibly injured by the rocks.

National Guard troops fired tear gas and rubber bullets to disperse the Chavez supporters.

On Sunday, January 12, military troops dispersed thousands of anti-government protesters who gathered outside a huge military complex in Caracas.

While some protesters Sunday taunted soldiers blocking access to the army installations, the opposition has been courting the armed forces and urging them to take sides, while Chavez insisted the military were firmly behind him.

Military Still Behind Chavez With both sides firmly entrenched in their positions, attention was closely focused on the military establishment, which to date has generally steered clear of political pronouncements on the volatile crisis.

Chavez has repeatedly warned the armed forces were ready to wage battle in defense of his self-styled social revolution threatened by the business, labor and political leaders heading the strike that was 43-days-old Monday.

Over the weekend, he announced elite army rangers were being deployed to patrol oil distribution centers and pipelines.

He also threatened to use troops to seize food processing plants idled by the strike and suggested sending soldiers with teachers' degrees to replace striking school staff.

On Sunday, Chavez warned that the armed forces would close any account they have with banks that side with the strike. Last week, several financial institutions closed for two days, and many banks work a half-day schedule in support of the protest.

Chavez had already used troops to seize from strikers installations of Petroleos de Venezuela (PDVSA), the giant state oil company that has been the main target of the strike launched on December 2 in a bid to force Chavez from office.

The embattled president has repeatedly rejected calls for his resignation or snap elections.

He also dismissed opposition plans for a February 2 referendum on his mandate, saying the constitution only allowed for a recall referendum in August, half-way through his six-year term.

His foes accuse the leftist-populist president of wrecking the economy and dividing the country. Chavez, in turn, accuses his opponents of sabotage, for choking the oil industry.

With shipments from the world's fifth largest oil exporter reduced to a trickle by the strike, OPEC agreed Sunday to increase oil production by 1.5 million barrels per day in a bid to curb a surge in prices.

Venezuelan Leaders Review Strike Strategy

www.newsday.com By ALEXANDRA OLSON Associated Press Writer

January 13, 2003, 5:40 PM EST

CARACAS, Venezuela -- Venezuelan opposition leaders said Monday they were considering asking doctors, teachers and small business owners to return to work, saying aspects of the 43-day-old walkout could become "counterproductive."

But the strike will continue where it matters most, in the key oil industry, said Enrique Naime, a leader of the opposition political movement Democratic Coordinator. The industry provides half of government revenue and 80 percent of export earnings.

"The oil people are insisting they aren't going to cede," Naime said. "The strike will continue but it's important to continue without kicking goals into our own net."

The opposition is worried that suffering caused by the strike could lead to a popular backlash, even though it says it has taken measures to ensure there are no acute shortages of essential goods.

Most private schools and some public schools have been closed since the strike began Dec. 2. Hospital workers supporting the strike are only attending emergencies. Many small businesses complain they can't sustain losses much longer. Gasoline and bank lines are long; gas shortages have disrupted commerce. Many Caracas supermarkets have run out of fresh milk and are running low on basics such as flour and drinking water. Many medicines no longer are available at pharmacies.

"At this moment, the doctors' strike could be counterproductive, just like the educational strike could be counterproductive," Naime said.

He said strike leaders were considering asking medical workers, teachers and small business owners to resume work.

William Davila, another Democratic Coordinator leader, said the food industry also should be given the freedom to ensure supply. But Davila said any easing of the strike should depend on a pending decision by the Supreme Court on the legality of a nonbinding referendum of Chavez's rule. The National Elections Council has set the referendum for Feb. 2.

The strikers are trying to force Chavez to accept a nonbinding referendum on his rule. Chavez's presidency runs until January 2007, and Venezuela's constitution says a binding referendum may be held halfway into his six-year term, or August.

Chavez's opponents cite a clause in the constitution that allows citizens to petition for referendums on "matters of national importance" at any time. They delivered 2 million signatures asking for the vote.

The strike is strongest in the state oil monopoly, Petroleos de Venezuela S.A., where 30,000 of 40,000 workers are striking. The government fired at least 1,000 managers. Energy and Mines Minister Rafael Ramirez said the government will bring oil production back to 2.5 million barrels a day by mid-February.

Once the world's fifth largest oil exporter and No. 4 supplier to the United States, Venezuela now exports less than 300,000 barrels a day, according to striking executives. The government says exports are 800,000 a day.

According to the Lundberg Survey of 8,000 U.S. service stations, Venezuela's strike has helped raise U.S. gasoline prices by 5 cents per gallon in the past three weeks to an average $1.50 a gallon.

Citing scarce gasoline imports from Venezuela, the U.S. Energy Department said American motorists could pay up to $1.54 per gallon of gasoline this spring even if war is averted in Iraq.

"The market underestimated the tenacity of the Venezuelan strikers," said Phil Flynn, head of the energy trading desk at Alaron Trading Corp. on the Chicago Mercantile Exchange. "People are finally starting to wake up not just to the strike but also to Venezuela's importance as a U.S. supplier."

In Maracaibo, 340 miles west of Caracas, police used tear gas to keep pro- and anti-Chavez rallies apart. National Guard troops used tear gas to stop a small clash in Caracas.

Chavez -- who purged the military of dissidents after a brief April coup -- has sent troops to seize striking oil tankers, commandeer gasoline trucks and lock strikers out of oil installations. Last week, he threatened to send soldiers to seize food production plants participating in the strike and fire or jail striking teachers.

"We are spending millions of dollars to import food," Chavez said Friday. "I can't allow the people to be strangled by hunger. I can't allow children to die because there are no medicines, or no milk."

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