http://quote.bloomberg.com/fgcgi.cgi?ptitle=Bloomberg%20Energy&touch=1&T=energy_news_story.ht&s=816a4339f88a2f5a4ff13b3856113190 Bloomberg Energy
Mon, 21 Feb 2000, 11:40am EST


2/21 9:09 Venezuela's Biggest Oil Workers' Union Calls Meeting, Threatens Strike
By Joshua Schneyer

Caracas, Feb. 21 (Bloomberg) -- Venezuela's largest oil worker
union called an emergency meeting and threatened a nationwide
strike over stalled contract negotiations with the government.

Fedepetrol said its regional leaders will meet at 11 a.m.
local time to decide whether to strike this week, after state oil
company Petroleos de Venezuela SA delayed negotiations for a new
contract.
``We'll decide at this meeting whether it's necessary to
strike,'' said Fedepetrol spokesman Bladimiro Blanco.

PDVSA and Fedepetrol have been quarreling over wages since
November, when a contract for approximately 40,000 oilfield
workers expired. Fedepetrol is demanding that worker salaries be
more than doubled in a new contract. PDVSA, offering an 11 percent
raise, canceled contract talks for up to eight months and said it
won't negotiate until the oils unions elect new leaders.

A prolonged strike could affect shipments of oil to the U.S.
from one of its largest suppliers. Fedepetrol threatened eight
times to strike last year, carrying out two 24-hour strikes,
without jeopardizing exports.

-- Helium (HeliumAvid@yahoo.com), February 21, 2000

Answers

Hmmmm. Venezuela is the largest exporter of oil to the U.S., and most of that oil is crude. Unless Venz. has a large stockpile (or can replace it quickly) this doesn't sound good, especially in combo with the refinery problems Venz. has had. Good to remember that agreements among the oil ministers doesn't necessarily guarantee movement of product. Thanks, Helium

-- Brooks (brooksbie@hotmail.com), February 21, 2000.

I wouldn't be surprised if this was a maneuver to maintain or increase the price of oil but why not? We're addicted to oil and if they can manipulate and scheme to make there remaining inventory worth twice as much. More power to them. At some point in time the American public will have to realize its a finite resource.

The funny thing is, if you convert your car to alcohol and run a still using sugar beets or what have you, you get arrested by the Bureau of Alcohol, Tobacco and Firearms.

-- Guy Daley (guydaley@bwn.net), February 21, 2000.

Guy, I don't think that's what Venz. had in mind. What I have been reading lately is that Venz. is desperate to keep the price up so they can get as much money *right now* to dig themselves out of the flood disaster from last year. Sounds more like the union laborers recognizing a leverage point.

-- Brooks (brooksbie@hotmail.com), February 21, 2000.