Greenfield South America is cheap

Upgrading electrical infrastructure in Latin America is cheap. For example, upgrading Guri hydroelectrical power would only cost around a billion dollars. Similarly, many thermal plants can be restored. In the whole continent, performing a full green field recovery of electrical generating facilities would cost about $30 billion, maybe $40 billion. That is absolutely nothing in comparison to other projects: such as road construction or upgrading construction and maintenance. Upgraders however are expensive. Just rehabilitating a few upgraders, or building new ones: like the Zuata and Machete upgraders in Orinoco, or the Talara refinery, Cartagena refinery, Esmealdas refinery, the new Essequibo refinery expected to be built between Venezuela and Guyana, plus additional refineries in Brazil, would add up to around $160 billion to $200 billion.

Road network expansion across Latin America would amount to $170 billion. Upgrading ports in addition to Chancay, such as Puerto Cabello, Buenaventura and Natal would add an extra few dozens of billion dollars. Educational projects for training workforce in enhanced oil recovery methods, sustainable mining and artificial intelligence tools are meant to reduce costs, at the meagre investment of $5 billion. Environmental preservation measures should always be budgeted, amounting to around $10 billion. Clinics to be built would add up to another $2 billion. Such clinics would serve various locations traversed by new roads. New pipelines would effectively link all the refineries that will be upgraded, and mining sites will also need investment. Yet, all of this doesn't even add to $1 trillion.

Comprehensive investment package adds to about $600 billion, subject to increase as we identify further projects. However, we try to be as comprehensive as possible for all countries. When comparing this figure with the national debt of the United States, around $40 trillion, it looks trivial as $1 trillion is a bargain. Latin America and the Caribbean require this investment, so that we develop millions of jobs and billions of dollars in additional output. Revenue coming from oil and mining fields, after investment, will quickly reach a trillion dollars within a few years. Business is sound because it is sought to profit from economies of scale. Mathematics is easy; however, it is more time consuming to gather the tourism and cultural festivals needed to support every single town served by the new Avanza roads. We make sure that every country, every municipality, every location gets their unique consideration needed: so that mayors or governors, as they become approached, will become anxious to participate in the Avanza road, ferry, pipelines, upgraders, oil sites, mining development projects: As a conclusion, politics again becomes the foremost.

What would CELAC think of this? What would United States, European Union, or even OPEC think of this? As Venezuela becomes more powerful and increases oil output, it will push to an increased quota of 9 million barrels a day, just like Saudi Arabia. Venezuela could perfectly ask for a 10 million barrels a day quota just as Saudi Arabia because we have more reserves than they do. We could probably produce that amount of oil in a few years, if all the steps of the Avanza project are completed on time by following its original design. Will the world be prepared for an oil price less than $55 a barrel? It should. Venezuela already receives $51 per barrel, as mentioned in oil price website, and it's profitable. Chevron is coming back in. That means that we can produce petroleum and be profitable, even if we sell it at $51 per barrel. Maybe the profit is not too much, but we get a profit.

Why would Venezuela have to respect quotas for other countries, if other countries do not respect the right of Venezuela to produce 8, 9, or 10 million barrels of oil per day? so does Saudi Arabia, we indeed have similar amounts of reserves. A greenfield development project assumes that all refineries, pipelines and electrical facilities will be built. It is just a matter of compiling all manufacturers of the planet, allocating different refineries and electrical facilities: both already in existence, also in design or construction status. Mathematics is easy. Perhaps there are oil producers in other regions who do not want oil prices to fall below $51 per barrel: because they would get out of business. But those are the same countries that wanted Venezuela to be out of business by imposing sanctions. So, it is in our best interest to produce as much as we can even if the global oil price goes down. Besides, lowered oil prices will become a plus for consumers. Isn't good economics supposed to benefit the consumer? That's what you are taught in macroeconomics classes in college.

Venezuela is already used to selling oil at $51 per barrel. We cannot expect the United States sanctions to be lifted, at least while Marco Rubio is the secretary of state. He has a personal animosity against Cuba and Venezuela. Other countries will have to compete. In other businesses, if you produce below breakeven point: you are out of the market. Maybe that's what's going to happen to shale oil producers. Analysts who are bullish on oil assume that Latin America will not increase its production: with a greenfield structure of pipelines, uniting all of South America. We are aiming into Central America as well. In Honduras they have Geotérmica, in Guatemala they have Xan. Tabasco oil fields are not too far. North of Varadero Cuba boasts considerable offshore deposits. Venezuela has already helped the Cuban oil industry to develop.

As this massive infrastructure construction in Latin America commences, a special allocation will be provided to Cuban electrical facilities. They may develop alternative energy sources such as wind energy producing facilities or battery operated facilities, so that Cubans can handle four or eight extra hours of electricity whenever the national grid goes down. It is technologically easy to solve electrical problems in all of Latin America. The projects are designed, the costs are known, and it's not much money at all. Adding up all items we do not get to spend a trillion dollars, unless we increase scope into secondary projects.It doesn't seem like that much money is needed.

United States spends $40 trillion in emission of treasuries. What is more important for the world? $1 trillion worth of verifiable Latin American investment will promote a safe supply of energy and minerals, needed for high-tech industries and roads. The international community can travel to Latin American countries, to enjoy our beautiful natural resources. Alternatively, we may continue creating U.S. treasuries out of nowhere. What would big companies in Latin American business think of this? For example, Chevron already works in many of these countries with substantial investments. Chevron would be benefited by a courteous relationship between Venezuela and Guyana: sharing a new refinery instead of pointless border disputes. Rare earth mining customers are eager to untap resources across the continent.

Environmental concerns are tantamount. What is more harmful for the environment? Each production type entails specific challenges. Oil, lithium or copper are intertwined for energy facilities and transportation vehicles. Northern Chilean mountains, Arco Minero and Lake Maracaibo are each an environmental mess. Technologies exist, that have been designed to lower environmental impact. Why aren't these technologies promoted? Why don't countries ask for stiff environmental requirements for this kind of production? Adding up environmental cleanup to the investment, building up an entire greenfield, South America and the Caribbean would finally approach the $1 trillion target. It's actually cheaper than expected.

Any unforeseen contingencies that would increase Latin American infrastructure investment to a figure exceeding $1 trillion, would still add up to a total significantly lower than the $40 trillion wasted by the United States Department of Treasury. They print obscene debt. Maybe there is a silent goal that Latin American countries are explicitly prevented to reach economic development, because then they would be formidably competitive. In the early 1990s Canadians complained that if China developed, and if everyone had a refrigerator in China, such an increase in Chinese standard of living would be obnoxious for the environment. Nowadays China is an economic powerhouse, and China investment in South America is notable.

Much of this Avanza roads project assumes that Chancay port will be very important in the Pacific. Puerto Cabello in the Caribbean could actually be developed in the manner Chancay is being addressed. Trunk 7 of Avanza roads goes from Venezuela into Brazil, crossing the Amazon by ferry: it then continues into Porto Velho, Pucallpa and Chancay in Peru. Northern and Southern South America required enhanced connectivity. It can be safely concluded that Latin American and Caribbean development is cheaper than initially thought. Latin American and Caribbean development is easier than initially thought. Main trouble is convincing politicians from quarreling countries to work together. Organizations such as CELAC and CARICOM are requested to support Avanza roads and infrastructure projects.