Petroleos de Venezuela Increases Social Spending

[pescao]

http://quote.bloomberg.com/apps/news?pid=10000086&sid=a0.J9.n0De5c&refer=latin_america

Petroleos de Venezuela Increases Social Spending

March 2 (Bloomberg) -- Venezuela's state-owned oil company raised for a second time in two months the amount it will spend on government programs this year, boosting the total to $1.6 billion.

Petroleos de Venezuela President Ali Rodriguez said in an interview with the Venpres state news agency the company will provide $500 million for a government housing program, $600 million for agricultural programs, and another $500 million for social programs.

The company said last month it would earmark $1.2 billion for government programs.

Increased social spending by Petroleos de Venezuela has raised concern among analysts such as David Voght, managing director of IPD Latin America, that it won't have enough funds to invest in maintaining oil output. The government counts on crude export taxes for about a third of government revenue.

...

[denverbill]

1. Good for them!

It's about time their oil resources benefited the people, rather than just a few billionaires.

[Guy Whitey Corngood]

2. 5, 4, 3, 2....

I'm just waiting for all the " But Chavez is a commie tyrant" posts to start pouring in.

[pescao]

3. dont worry

the bolivarians outnumber the escualidos here by a large factor (kinda like in venezuela...)

[Guy Whitey Corngood]

5. Eso espero.

:toast:

[Zhade]

9. I've heard people here on DU call other DUers 'commies' and 'traitors'.

And I'm talking about 1000+ posters! It's pathetic...and not too surprising, considering the amount of propaganda a lot of good people here still swallow. And the worst is that they're sanctimonious about it.

I hate the media. And I work in it! ARGGGGGGGGG!

[Guy Whitey Corngood]

10. How about "pro dictator" or 'leftist fringe"? I like those too.

[Zhade]

11. Oh, yeah. Those are so constructive and accurate, aren't they?

I've even heard the claim that "moderates" are somehow more progressive than "fringe leftists". How that works, I don't even know.

[Guy Whitey Corngood]

12. I've seen you going at it with a lot of people.

I don't post as much as I'd like to. Frankly I don't care to sometimes. It's not worth it. I think I've made enough "enemies" here already. :evilgrin:

[orwell]

4. Hugo Boss

Chavez is really asking for it. How dare he spend money on social spending. What kind of 'commie' crap is that?

Next thing you know, he will be calling King George an A**hole.

O

[prolesunited]

6. OMG!

Somebody MUST put a stop to this! What is become of the the billionaires and millionaires? If we let this continue, our citizens might get some ideas.

[Joanne98]

15. This is the worst sin

a third world country can do. If you feed the poor your dead. Way worst then calling * an ahole. lol

[bemildred]

7. In other news ...

Unemployment dropped 6% in the last ten months,
the economy expanded at a 9% rate in the last quarter of 2003,
and petroleum production is higher than before the strike.

All in Venezuela.

[Guy Whitey Corngood]

8. That's nothing but Fidel loving commie crap, boy.....

Yup I'm talking to you...

[bemildred]

14. I confess.

Put the cuffs on me and let's go.

[Guy Whitey Corngood]

16. All right come on buddy.....

(Sorry I can't help it i found all these dorky ass photos of him. I don't know what else to do with them.)

[worldgonekrazy]

17. Wow!

That 9% growth rate is big news. I thought all those benevolent geniuses at the World Bank and the IMF told us socialism was bad for the economy?

But the most amazing thing? All that progress despite the turmoil that has been caused in that country.

[bemildred]

18. Getting rid of the parasites can really help ... nt

[ctex]

19. I strongly doubt oil production is higher than before the strike

I know an awful lot of oil industry people here in Houston, TX and the consensus is overwhelming that Venezuelan production took a big hit early last year and has yet to recover.

Last fall when Chavez first claimed to have matched pre-stirke production the consensus of oil traders was at least a 300,000 bbl/day shortfall. Maybe they've made up some more lost ground since then, but it is not as simple as turning on the tap since some of the fields were damaged during the strike and will take a very long time to return to full output.

The people I rely upon for these opinions are not oil company CEO's etc, but hands-on oil traders whose paycheck & bonus depend upon knowing what's happening re: oil production & exports.

[bemildred]

20. Perhaps I exaggerate a bit.

:-)

Here's the story:

Venezuela's Economy Grew 9% in Fourth Quarter on Oil (Update2)

Gross domestic product, a measure of all goods and
services produced in the country, expanded 9
percent in the October-to-December period from
the same period a year ago, the central bank said.
The oil industry, which accounts for about a third of
Venezuela's GDP, grew 25 percent after the
two-month strike that ended in February 2003 cut
output by as much as 95 percent.

`We were pleasantly surprised to see oil
production revved back up pretty quickly,'' said
Morgan Harding, a sovereign debt analyst at the
Fitch Inc. rating service in New York. ``It's
remarkable.''

...

The non-oil economy grew 3.9 percent in the fourth quarter, led by a 16 percent rise in manufacturing.
Construction fell 15 percent, the bank said.

...

Oil production has risen to about 2.5 million barrels a day from as low as 150,000 barrels a day during the strike.

There is some spin and counter spin on how it's going, but I've
used up my four excerpts.


Edit, add link: http://quote.bloomberg.com/apps/news?pid=10000086&sid=aqd2nOfnw0sk&refer=latin_america

[ithacan]

13. but if this money were being paid to shareholders,

you can be sure no one would be complaining...

What bullshit!!!

Government ownership of industries like this is excellent! The profits go back to help everyone in the country, rather than into the pockets of the few rich.