MercoPress. South Atlantic News Agency

Latinamerica holds 13% of world oil reserves.

Latinamerica and the Caribbean hold 13% of known world oil reserves which represent 14% of world exports and 9% of global refining capacity according to Fernando Sánchez from the United Nations Latinamerica and Caribbean Economic Committee, Cepal.

The announcement was done during a meeting of the Latinamerican Parliament (Parlatino) Energy and Mines Committee, currently holding sessions in Cuba. The meeting is basically analyzing the role of government owned companies and how they have managed to develop and perform in their specific areas.

In his address Mr. Sánchez said that an oil barrel at 45 US dollars conditions the development of the world economy, however he also pointed out that mineral and commodity real prices are still lagging compared to manufactured goods and are actually below the 1997 level.

Another topic of the meeting was the current structure of government oil companies and Mr. Sánchez described three main categories: those companies which are monopolies with strategic international alliances but always under a strict national vision; and those which have government predominance but also have developed a negotiated opening plus promoting private investment. Finally, those companies with private prevalence and a tendency to vertical integration and internationalization but with limited foreign conditioning.

Chilean representatives described the experience of the world's largest copper producing company in the world, Codelco, government owned and which in the last decade has managed to double reserves, increased production estimated to reach three million tonnes per annum by 2010 together in the framework of a sustainable development, falling costs and growing productivity.