Venezuela Defends Equilibrium Price in Oil Market

Source: www.gulfoilandgas.com 10/26/2015, Location: South America

People’s Minister of Petroleum and Mining and President of Petroleos de Venezuela, SA (PDVSA), Eulogio Del Pino, participated along with the president of the Permanent Commission on Energy and Petroleum of the National Assembly, assemblyman Fernando Soto Rojas, in an interview on the "Assembly Live" program, on the ANTV channel.

On the program, Minister Del Pino spoke about Venezuela’s proposal at the Second Technical Meeting of representatives of the nations of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers in Vienna, Austria, geared at supporting the stabilization of the oil market.

Minister Del Pino said that the "equilibrium price" would ensure the necessary investment to replace the barrels that potentially would stop being produced in the short term.

"It is important for oil producing countries to be the ones that calculate it, as we have a responsibility to humanity for the price to be sustained over time. We must provide more than 92 million barrels per day. We must not enter into speculative markets, it would be unfair to the world”, said the minister.

The also president of PDVSA said that investment levels could be maintained with an equilibrium price. "A less than average price would bring in the short term a high price scenario. Some analysts have said it would be $118 per barrel and that's a scenario we don’t support, nor the $ 40 one, because we wouldn't be able to replenish the amount of oil that declines", he said.

At the Second Technical Meeting of OPEC member nations with major non-OPEC producers, among them Mexico, Brazil and Russia, Venezuela proposed a plan to balance the market for their consideration.

Minister Del Pino spoke about the destabilizing attempts that "since 2002 have been carried out by the unpatriotic right; they tried to use PDVSA to attack the Eternal Commander Hugo Chavez, as some multinationals have done too. Both groups do not forgive the sovereign control that the Bolivarian government has achieved over the oil industry in order to benefit the people”.

The minister also talked about the strength of PDVSA, the fifth company worldwide. It has been serving its international financial commitments in the midst of a crisis of falling prices and the economic war of sectors of the oligarchy

"PDVSA continues to produce responsibly. It is an industry that has more than 150,000 workers, whose labor rights have been vindicated, maintained and improved". PDVSA continues to ensure the fair distribution of oil revenues among the Venezuelan people through social programs and missions, said Minister Del Pino.

The president of the Permanent Commission of Energy and Petroleum of the National Assembly defended the importance of actively participating in decisions concerning the oil industry and the oil market.

"The foundation of OPEC was a successful political strategy. Fortunately, Venezuela has gained respect internationally with the foreign policy pursued by the Eternal Commander Hugo Chavez and continued by President Nicolas Maduro", said the assemblyman.


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