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Editorial Commentary
Gustavo Coronel:
I challenge Rafael Ramirez to a debate on PDVSA
A recent speech given by Rafael Ramirez* to the managers of PDVSA clearly reveals an irresponsible man, charged with hate. While someone like him remains at the helm of the company there is no hope for its recovery. PDVSA’s collapse is damaging all Venezuelans.
The country has to know about the tragic situation of PDVSA. Ramirez does not represent a simple case of bureaucratic incompetence or a manager with a slightly different management philosophy. He represents a fundamental gap between prudent and sensible management and the criminal use of a company as a political and ideological tool.
In his speech Ramirez posed the question: “Where would the revolution be without PDVSA”? The answer is simple: it would already be in the dustbin of history. There is no revolution in Venezuela but a farce lubricated by oil money, almost $300 billion that Venezuela will never see again, wasted by a dishonest and inept regime. The scandals of the drilling rigs contracted with inexistent companies or of the Antonini $800,000 bag have brought to light the mediocrity and corruption of the group that currently manages PDVSA. But they are not satisfied with the destruction the oil company. They now pretend to convert PDVSA into a jack-of-all-trades, a PDVSA to manufacture clothing, one to build houses, one for agriculture.
A company that tries to do it all ends up by not doing anything well. PDVSA has already lost 800,000 barrels per day of production capacity and has replaced well-known and technologically sound international oil companies with state-owned companies from socialist countries that have nothing to contribute to the Venezuelan petroleum industry. Ramirez pretends that the “new” PDVSA should sell at cost. This means that the traditional laws of the economy will be replaced by a handouts-to-beggars system that will inevitably lead us to bankruptcy. The poor cannot become rich through handouts. Poverty can only be defeated by the conversion of the poor into producers and self-starters. Throwing a fish to the poor solves only their day’s problem but does not teach them to fish.
Ramirez claims that in PDVSA only the “revolutionaries” can have a place. The problem is that most of the “revolutionaries” are opportunistic and inept, not the technical and managerial class that the company requires. In his speech Ramirez made fun of meritocracy, calling it a “stupidity”. Meritocracy is the system that promotes the best and the brightest. How can this be more stupid than converting PDVSA into a manufacturer of panties?
Ramirez admitted that PDVSA does not have a planning function or an office of accountability. They don’t know how! The financial resources of PDVSA are going directly into Chavez’s pockets, for him to give away to Castro, Morales, Kirchner, Ortega, Correa and other members of the gang, to buy weapons or to dream of building 14 refineries, including one in the Fiji Islands. As a result PDVSA is lacking drilling rigs or well locations and is a company with record amounts of industrial accidents and oil spills.My Challenge.
I challenge Rafael Ramirez to a public and open debate or debates about the past, present and future of PDVSA, to be held when he wants, where he wants, as long as anyone can attend and the media can freely report on its results and the moderator is impartial. My professional credentials are sufficient. I was an oilman before Ramirez learnt to talk. My civic credentials are impeccable, since I have never have stolen public (or private) funds or killed anyone. There are many Venezuelan oil managers who could challenge Ramirez and probably do a better job but I just thought of it first.
If Ramirez declines I will say he is a coward and an ignorant. If he accepts I will not say he is a coward.
*Rafael Ramirez is Venezuela's Minister of Energy and Petroleum and CEO of PDVSA, the country's national oil company.
Gustavo Coronel is a 28 years oil industry veteran, a member of the first board of directors (1975-1979) of Petroleos de Venezuela (PDVSA), author of several books. At the present Coronel is Petroleumworld associate editor and advisor on the opinion and editorial content of the site. All Coronel's articles can be read at its blog lasarmasdecoronel. Petroleumworld not necessarily share these views.
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Petroleumworld News 10/05/07
Copyright© 2007 Gustavo Coronel. All rights reserved.
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