You might be interested in these two links - here's a link to an article about a U.S. Department of Commerce - International Trade Administration report that discusses the international energy situatioin w/regards to Y2k.

http://www.pcworld.com/pcwtoday/article/0,1510,11148,00.html

The ITA also has a Y2k website, which includes some interesting reports and links at: http://y2k.ita.doc.gov/y2k/y2k.nsf

If you go to the ITA site, pay particular attention to the menu on the left. Click on "Americas" and take a look at some of our neighbors to the south.

-- Anonymous, May 26, 1999

Answers

Speaking of our neighbors to the south, this appeared on Reuters today regarding Venezuela. I can't begin to tell you how bad this is for several sectors, oil, gas and electric. It has implications for the US, as they are a major producer of crudes which are imported to the US Gulf and East Coast. They also produce fuel oil which is imported to the US to be used where? Utilities. This is a bad sign for the international front. The Vens are a very proud group, and for them to come right out and say they are desparate is an indication of the depth of the problem down there.

Even if they get the money, which is a huge if, where will they be able to buy the manpower to fix this? This is the worst news I've seen on Y2K yet (I'm a crude oil analyst so it really hits home).

Wednesday May 26 4:18 PM ET Venezuela Faces $1.5 Billion Y2K Computer Problem CARACAS (Reuters) - Venezuela needs to spend $1.5 billion in an effort to prevent possible computer chaos coinciding with the change to the year 2000, with the nation's electrical system particularly vulnerable, senior officials said Wednesday.

Presidential Chief of Staff Alfredo Pena said the previous government, which left office in February, made absolutely no preparations for a problem that requires urgent attention.

``We are very behind and it is very, very serious. We need $1.5 billion for this, which was not approved by the previous government,'' Pena told journalists at the Miraflores presidential palace.

The government of President Hugo Chavez already is struggling to deal with a $5 billion fiscal deficit, equivalent to about 5 percent of gross domestic product.

State-run oil company Petroleos de Venezuela, the world's third- largest oil exporter, was aware of the so-called Y2K bug, Pena added, and made progress in preparing its computers for possible errors caused by the date change. But Pena said the electricity sector was very vulnerable.

``Public services could be paralyzed, mainly because of problems with electricity,'' he said.

The head of the government Central Office of Statistics and Computing, Gustavo Mendez, said Venezuela was one of the least well- prepared countries in the world.

The World Bank and InterAmerican Development Bank have just $200 million in loans available worldwide to help solve the problem, Mendez added.

-- Anonymous, May 26, 1999

3 Reason's The Vens are important to Electricity.

1. They supply a major portion of our crude oil. Interruptions in this supply mean interruptions in supply for fuel for utilities.

Venezuela is important to world energy markets because it holds proven oil reserves of 72 billion barrels, plus as much as 1.2 trillion barrels of extra-heavy oil, including orimulsion. In the first half of 1998, Venezuela was the largest supplier of total U.S. oil imports (although it ranked #2 in crude oil -- behind Saudi Arabia). Venezuela currently ranks as the world's fifth largest oil producer.

As of July 1998, Venezuela was producing around 3.0 million barrels per day (bbl/d) of crude oil, compared to its OPEC quota of 2.8 million bbl/d, and down from 3.4 million bbl/d in January 1998. About 1.4 million bbl/d of this was exported to the United States, which has become increasingly reliant on oil imports from the Western Hemisphere in recent years, and which in 1997 imported more oil from Venezuela than from the entire Persian Gulf region.

2. Venezuela exports refined products to the US, including fuel that goes to utilities.

About one-third of Venezuela's refined product exports are exported to the United States, where they are distributed mainly by Tulsa- based Citgo, PdVSA's U.S. refining and marketing subsidiary. With about 14,855 service stations in 48 states throughout the United States, Citgo ranks as the largest U.S. gasoline retailer. Venezuelan oil shipments to Citgo (and to its Lyondell Citgo joint venture) fell during the summer of 1998 vs. the same period in 1997.

3. Venezuelan Orinoco upgraded crude is used by utilities around the globe (thankfully, FFPL dodged a bullet here, they should thank the greenies for this one).

Orimulsion PdVSA is aiming to develop the country's vast extra-heavy oil reserves, particularly in the Orinoco Belt. PdVSA is examining four more Orinoco oil sands ventures for possible future development. PdVSA is counting heavily on foreign and private sector investment to achieve its goals. Bitumenes de Orinoco (Bitor), a PdVSA subsidiary, manages the production and marketing of the country's boiler fuel, Orimulsion. Orimulsion is made up of natural bitumen (70%), water, and non-toxic additives. Bitumen is abundant in the Orinoco Belt. Bitor anticipates exports of up to 20 million tons of Orimulsion by 2000. In the long term, Bitor is planning to build three new Orimulsion production plants at a total cost of near $1 billion.

Bitor's main marketing objective for Orimulsion in the United States appears to be electric utilities -- particularly those planning to switch from fuel oil. For instance, Florida Power and Light (FP&L) signed a 20-year contract in April 1994 to buy 4.5 million tons per year starting by 1998. In April 1996, however, state officials in Florida blocked the deal for environmental reasons (orimulsion contains high levels of sulfur and other pollutants). FP&L appealed the decision, and Florida Governor Lawton Chiles called a new hearing on the matter. In early August 1998, FP&L decided not to appeal the July decision by Florida's Cabinet and Governor Chiles to deny FP&L's orimulsion plan. FP&L had claimed that converting its 1,700-MW (nameplate capacity) Manatee power plant would have saved its customers $4.4 billion over 20 years while reducing emissions. Environmental groups warned that orimulsion could cause serious damage in the event of a spill.

Despite its lack of success with FP&L, Bitor exports Orimulsion to Canada, China, Denmark, Germany, Italy, Japan, and Lithuania. In August 1998, Bitor signed an agreement with the Korean Power Engineering Company (Kopec) to explore use of Orimulsion in South Korean power plants. At the same time, Taiwan has approved an environmental impact "basic proposal" for use of Orimulsion in a power plant in that country. Bitor also is looking at other possibilities in the United States.

-- Anonymous, May 26, 1999