A decade-long dependence to oil subsidised by Venezuela may be coming to an end for severalCaribbeannations, with a nudge from the United States.
Fears that falling oil prices could knock the wheels off the already wobbly economy of oil-dependent Venezuela have sparked apparent interest in alternatives to Petrocaribe, a trade program created by the late President Hugo Chavez.
Evidence of that interest was on display Monday, asCaribbeanleaders converged in Washington for the firstCaribbeanEnergy Security Summit, hosted by Vice President JoeBiden. Plans for the event have been in the works for months, but with oil recently falling to below $50 a barrel, a sense of urgency has emerged.
All the countries of the region, except Cuba, participated in closed talks with Bidenand other U.S. officials, as well as representatives of the European Union, the U.N., and multilateral financing agencies such as the World Bank and Inter-American Development Bank.
The focus was on exploring ways to helpCaribbeancountriesuse alternative energy sources to reduce the nearly complete dependence on oil that has made energy expensive in the region.
The word "Venezuela" may not even get mentioned, but it will be on everyone's minds.
"These folks are in a situation where Petrocaribe is not as sweet of a deal as it used to be," said an official, who spoke on condition of anonymity to discuss the private, multilateral talks in Washington.
At the moment, there is no sign that Venezuela will end Petrocaribe. Earlier this month, President Nicolas Maduro praised it as a "guarantee of peace, stability, mutual benefit, shared development and fair commerce shared by the entireCaribbean."
Venezuela, which created the program as part of an effort to counter U.S. influence in the region, provides oil and refined products such as diesel at market prices, but it requires member countries to pay only a small portion of the cost up front and allows them to finance the rest under generous long-term debt agreements, as well as to barter for agricultural products or services.
But there have been downsides. It has discouraged theCaribbeanfrom trying to become more self-sufficient and shift to natural gas, which produces fewer greenhouse gases and would make their economies more competitive by bringing down energy costs. (AP)