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CNN Sunday Morning

Venezuela's Government Tries to Regain Control of Oil Production Amid Strike

Aired December 22, 2002 - 09:06   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


MILES O'BRIEN, CNN ANCHOR: Venezuela's government is trying to regain control of oil production amid a crippling strike by petroleum workers. National guard troops have been sent to board tankers filled with gasoline as oil production has nearly halted since the strike began this month. CNN's Harris Whitbeck joining us from Caracas, via videophone, with the latest on the continuing crisis -- Harris.
HARRIS WHITBECK, CNN INT'L CORRESPONDENT: Good morning, Miles.

President Hugo Chavez personally supervising the military operations to retake control of the Venezuelan oil industry. He was aboard the Filene Lyonne (ph), the one oil tanker that became a symbol of the opposition's attempts to force Mr. Chavez from power.

That tanker carrying 280,000 barrels of gasoline, has now, we understand, docked at a refinery on Lake Maricaribo (ph). And government authorities say this morning that they'll will immediately start distributing that gasoline in Venezuela's major cities.

The gasoline shortage here is now very, very acute. We could see yesterday gas lines that were up to two miles long. Some people waiting more than 24 hours to try to fill up their gas tanks. That is only the domestic situation.

In terms of filling its international obligations Venezuela has had lots of trouble. Usually Venezuela export about 3 million barrels of oil per day. In the last three weeks, they have only been able to export 2.8 million barrels. And, of course, as you know, Venezuela is the second largest supplier of oil to the United States. And 15 percent of the U.S. oil supply comes from this country.

So there's a lot riding on the government trying to get the control of the oil industry back here. They say that they've lost about a billion dollars since this oil strike began.

Now, the opposition that organized this strike says that it has defined the government's efforts to retake control of the industry. The opposition says it will maintain its presence on the street; that it will maintain the nationwide strike, meaning that stores and businesses will not be opening anytime soon. Again, their effort is to try to force Mr. Chavez from power, or at least get him to declare early elections -- Miles.

O'BRIEN: Harris, what are the chances -- I mean, the pressure has got to be tremendous on Mr. Chavez at this point. What are the chances he might buckle under, or does he seem to be just willing to fight it out to the bitter end?

WHITBECK: He seems willing to fight it out to the bitter end, Miles. Just last Sunday, he does this every Sunday, he has a nationwide television address. He said he was going to fight to defend what he calls his revolutionary style government to the death. And he has lots of supporters who say they'll defend him to the death. And he's been very, very defiant.

Now, we do understand that the negotiating process, which has been brokered by the Organization of American States, is showing some results. At least both sides are now able to talk about the same issues without, you know, without disagreeing too much. The problem is that both sides say they are -- their arguments are based on the Venezuelan constitution.

They're basically using the same arguments to talk about their very different points of view. So people say that eventually, there might be a negotiated solution to this, there might be a new recall election here, but people aren't holding their breath. They don't expect that to happen anytime soon.

O'BRIEN: All right, Harris Whitbeck, keeping us abreast of the situation Venezuela. Reporting live from Caracas via videophone, thanks very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com




Production Amid Strike>


Aired December 22, 2002 - 09:06   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Venezuela's government is trying to regain control of oil production amid a crippling strike by petroleum workers. National guard troops have been sent to board tankers filled with gasoline as oil production has nearly halted since the strike began this month. CNN's Harris Whitbeck joining us from Caracas, via videophone, with the latest on the continuing crisis -- Harris.
HARRIS WHITBECK, CNN INT'L CORRESPONDENT: Good morning, Miles.

President Hugo Chavez personally supervising the military operations to retake control of the Venezuelan oil industry. He was aboard the Filene Lyonne (ph), the one oil tanker that became a symbol of the opposition's attempts to force Mr. Chavez from power.

That tanker carrying 280,000 barrels of gasoline, has now, we understand, docked at a refinery on Lake Maricaribo (ph). And government authorities say this morning that they'll will immediately start distributing that gasoline in Venezuela's major cities.

The gasoline shortage here is now very, very acute. We could see yesterday gas lines that were up to two miles long. Some people waiting more than 24 hours to try to fill up their gas tanks. That is only the domestic situation.

In terms of filling its international obligations Venezuela has had lots of trouble. Usually Venezuela export about 3 million barrels of oil per day. In the last three weeks, they have only been able to export 2.8 million barrels. And, of course, as you know, Venezuela is the second largest supplier of oil to the United States. And 15 percent of the U.S. oil supply comes from this country.

So there's a lot riding on the government trying to get the control of the oil industry back here. They say that they've lost about a billion dollars since this oil strike began.

Now, the opposition that organized this strike says that it has defined the government's efforts to retake control of the industry. The opposition says it will maintain its presence on the street; that it will maintain the nationwide strike, meaning that stores and businesses will not be opening anytime soon. Again, their effort is to try to force Mr. Chavez from power, or at least get him to declare early elections -- Miles.

O'BRIEN: Harris, what are the chances -- I mean, the pressure has got to be tremendous on Mr. Chavez at this point. What are the chances he might buckle under, or does he seem to be just willing to fight it out to the bitter end?

WHITBECK: He seems willing to fight it out to the bitter end, Miles. Just last Sunday, he does this every Sunday, he has a nationwide television address. He said he was going to fight to defend what he calls his revolutionary style government to the death. And he has lots of supporters who say they'll defend him to the death. And he's been very, very defiant.

Now, we do understand that the negotiating process, which has been brokered by the Organization of American States, is showing some results. At least both sides are now able to talk about the same issues without, you know, without disagreeing too much. The problem is that both sides say they are -- their arguments are based on the Venezuelan constitution.

They're basically using the same arguments to talk about their very different points of view. So people say that eventually, there might be a negotiated solution to this, there might be a new recall election here, but people aren't holding their breath. They don't expect that to happen anytime soon.

O'BRIEN: All right, Harris Whitbeck, keeping us abreast of the situation Venezuela. Reporting live from Caracas via videophone, thanks very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com




Production Amid Strike>