Peter Howard Wertheim
OGJ correspondent
RIO DE JANEIRO, Oct. 13 -- US Sec. of State Colin Powell said during a visit to Brazil earlier this month "that despite the rhetoric of Venezuela's President Hugo Chávez, Venezuela is a reliable oil supplier and the [US President George W.] Bush administration has not ruled out the possibility of improving bilateral relations."
Venezuela's status as the world's fifth largest oil producer, and the fact that it supplies 1.5 million b/d of oil to the US—about 15% of total oil imports—are key factors seen by analysts as influencing relations between Washington, DC, and Caracas.
Also, Chávez's mandate was strengthened when 59% of voters expressed their support for him in the Aug. 15 presidential recall referendum, the results of which were endorsed by the Organization of American States (OAS) and the Carter Center headed by former US President Jimmy Carter.
Referring to the referendum, Powell said, "That's over and behind us. We still have differences of opinion with Venezuela, of course. . .but we're looking for ways to cooperate" with Caracas.
Chávez has repeatedly accused the US of supporting the Venezuelan opposition alliance in its attempt to remove him from power in a short-lived coup attempt in April 2002.
"Nowadays, over 50 international companies are conducting business in the hydrocarbon sector of Venezuelan soil, in tune with Venezuela's clear and coherent legal policy which fosters the participation of both Venezuelan and international capital in the sector," said Alí Rodríguez Araque, president and CEO of Petroleos de Venezuela (PDVSA), at a news conference at the Rio Oil & Gas Expo 2004 in Rio de Janeiro. The Brazilian Petroleum and Gas Institute (IBP) organized the event.
"PDVSA is preparing a plan that calls for investments of $37 billion over the next 5 years, with part of this investment being covered by company resources and approximately $10 billion from third parties," Rodríguez said.
