PLANNING OF ALL PRODUCTIVE AND SERVICE SECTORS, ECONOMIC PLATFORM OF SOCIALLY DEVELOPED COUNTRIES

PLANNING OF ALL PRODUCTIVE AND SERVICE SECTORS

ECONOMIC PLATFORM OF SOCIALLY DEVELOPED COUNTRIES

CONTENT

About the Author
Foreword

1.    NORWAY: VALUES AND DEVELOPMENT PLANNING

2.    DEMOCRACY AND OIL PRODUCTION IN VENEZUELA

3.     GUAYANA DEVELOPMENT PROGRAMME

VISIONARY BUILDERS OF GUAYANA

RAFAEL ALFONZO RAVARD

LEOPOLDO SUCRE FIGARELLA

ELECTRIFICATION OF THE CARONÍ RIVER

MINERAL RESOURCES

IRON

BAUXITE

STEEL AND ALUMINIUM INDUSTRIES

4.    THE MISSED OPPORTUNITY, AND WITH IT, THE LOSS OF DEMOCRACY AND THE REPUBLIC

5.     THE UNSUCCESSFUL PRIVATIZATION ATTEMPT OF ALUMINIUM COMPANIES

6.     RECONSTRUCTION, SUSTAINABLE DEVELOPMENT, AND THE NEW WORLD ENERGY REALITY

7.     PLANNING OF THE ALUMINIUM SECTOR IN VENEZUELA

8.       CONCLUDING REMARKS

9.       BRIEF HISTORY OF DR MIGUEL RODRIGUEZ

10.    BRIEF HISTORY OF DR JESUS IMERY

About

Juan Guzmán was born in Caracas in 1955.

He earned his degree in Metallurgy at Brunel University London in 1980 under the tutelage of Professor Bernard Davies. Between 1977 and 1980 under the modality of studies combined with industrial training periods at Brunel University, he carried out training in the companies: British Aluminium Company, London and Scandinavian Metallurgical Company, and Aluminium Extrusion and Rolling Mill Plant of Aluminium Company of Canada, ALCAN.

He presented his thesis work on Oxidation of molten Aluminium-Magnesium Alloys, at ALCAN Laboratories in Banbury, Oxon, England, with which he was awarded the CONICIT-London Prize 1980 to the best research work carried out by a Venezuelan student in the UK.

In 1980 he began his professional career in Venezuela at Industria Venezolana de Aluminio, CVG Venalum, in Puerto Ordaz. He served as Cell Operations Supervisor, Process Engineer, and for 25 years headed the Research and Development Centre, forming since its inception in 1986, its multidisciplinary technical team.

He earned his PhD in Chemistry, Specialization in Aluminium Reduction Technology, and Carbon Technology for the Manufacture of anodes and cathodes for the aluminium industry, at the Norwegian University of Science and Technology, NTNU, Trondheim, where he was student of Professors Kai Grjotheim and Harald Øye. He underwent training at the Norwegian Hydro Aluminium Industry.

He was Director of the Aluminium Technological Innovation Centre, CINTAL, General Coordinator of CVG Alcasa Line V Project, and Manager of the CVG Venalum Expansion Project, Reduction Lines VI and VII.

He was Director at CVG Alcasa, Director at CVG Bauxilum and President of Conductores de Aluminio del Caroní, CVG Cabelum.

He was Member of the Superior Council of the National Council for Scientific and Technological Research, CONICIT, period 1994-1999, on behalf of the National Executive.

Between 1988 and 2008, he was Member of the Board of Directors of the Fundación Instituto de Ingeniería, FII.

Sustainable Development Planning

In addition to academic training, technical and managerial experience in the Aluminium Industry, having studied in countries such as England and Norway has allowed him to assimilate the strategies of these countries, in terms of planning their potential to structure government policies that have allowed significant growth in the technological and productive sectors, which support the high standard of living of the inhabitants of these countries.

To undertake these tasks, Venezuela has the Aluminium Industry as an important ally for such noble goals, just as the Countries of the Cooperation Council for the Arab States of the Gulf have done, which have seen in this industry a powerful tool for the diversification of its economy, and the generation of wealth and well-being.

Foreword

The socioeconomic and political history that holds the most profound resonance among all Venezuelans and the global community, as formally represented by institutions like the Organization of American States, the United Nations, the European Union, and the International Criminal Court, primarily pertains to the events that have transpired in the 21st century.

From a standpoint of logical reasoning and scientific methodology, assessing the socioeconomic and political transformation of Venezuela based solely on the events of the 21st century appears impractical. A more rational and informative approach involves scrutinizing the country's evolution during the period spanning from the 1950s through the close of the 20th century.

For a comprehensive comparative analysis, it is imperative to juxtapose Venezuela's trajectory with that of various nations within the same timeframe. Notable examples include the Scandinavian countries, Canada, New Zealand, Australia, Singapore, South Korea, among others.

What transpired during this era that led Venezuela to experience a deteriorating trend across all economic and living standard indicators, in stark contrast to the aforementioned countries which, in the 1950s, some of them faced relatively unfavorable conditions when compared to Venezuela? To address this, it is crucial to examine the strategies and actions undertaken by the Venezuelan state to reverse this perilous trend.

Real and per capita oil production in Venezuela 1970-2005. Source: ECLAC

Poverty in Venezuela, 1976-2006 (% of poor households or individuals)

LA ECONOMÍA DE VENEZUELA, 1975-2006. UN FRACASO DIFÍCIL DE ENTENDER

Failing to connect the past with the present is a significant error when diagnosing the present and forecasting the future. In any scenario, it is crucial to develop comprehensive plans, including short, medium, and long-term strategies, to pave the way for a prosperous and sustainable future.

To chart a course that guarantees sustainability for future generations, a thorough understanding of a country's history is indispensable. Effective planning for a nation's future hinges on correctly linking past diagnoses with the present, allowing for more accurate forecasts and the creation of a sustainable future.

Irrespective of the circumstances, it is imperative to maintain preparedness by having plans in place, whether they are for contingencies, humanitarian crises, or the reconstruction of societies, in addition to those designed for short, medium, and long-term goals. Neglecting or postponing medium and long-term visions under the pretext of current circumstances eliminates the potential for future progress and development, ultimately dooming a country to failure.

The goal of "VENEZUELA, SOME LESSONS FOR RECONSTRUCTION" is to encapsulate these aspects of national planning, specifically addressing the planning of productive and service sectors as the economic foundation for socially developed countries. Throughout history, planning across all productive and service sectors has been a fundamental and elemental activity for ensuring the normal subsistence of societies and the sustainable economic and social development of nations.

The economic and social advancements achieved by countries like Norway, Sweden, Finland, Denmark, Germany, Japan, Canada, England, Singapore, South Korea, New Zealand, Australia, and other European and Asian nations have been largely rooted in a methodical approach to designing sustainable economic plans. These plans leverage a country's inherent potential and opportunities by harmoniously aligning all productive and service sectors with local, regional, and national needs and capabilities. This interconnectedness ensures the effective adaptation of these sectors across the entire national landscape.

Recently, there has been a trend in some opinion articles and information sources associating Norway's standard of living with the development of its oil industry. It's crucial to highlight that the high standard of living and the remarkable economic and social development achieved by Norwegian society have never been reliant on its oil industry. To draw a parallel, both our countries share certain economic aspects, having been significant producers of oil, aluminium, and hydroelectric energy. We consider these factors as crucial for Venezuela's economic recovery.

Norway's level of social development far surpasses the standard of living achieved by countries in Europe, Asia, Japan, the United States, China, and Russia. This remarkable achievement is a result of their extensive long-term planning, which shields Norwegians from the repercussions of economic crises, eliminates economic cycles, and minimizes surprises.

Similarly, like their neighbors Sweden, Finland, and Denmark, Norway's development has consistently been grounded in fortifying various sectors of their economy across different regions of the country. In addition to their natural resources, their growth has been rooted in hard work, an activity that dignifies individuals and elevates the nation, thereby attaining the highest quality of life. They have also secured approximately a trillion dollars in the Norwegian Government's Pension Fund, sourced from reasonable oil price increases, ensuring prosperity for future generations.

The forthcoming report provides a concise overview of how economic planning has been conducted in Venezuela, encompassing the plans pertaining to productive and service sectors, with specific emphasis on the oil sector.

Since the methodological design of an economy hinges on comprehensive planning across all productive and service sectors, including food, oil, hydroelectric energy, iron and steel, aluminium, silviculture, agriculture, fishing, industrial products, mining products, tourism, and high technology, we will consider the oil sector, the hydroelectric sector, and the aluminium sector as examples. These have, for nearly half a century, represented untapped potential in Venezuela, despite the country's advantageous position for the development of these activities to generate wealth and well-being.

With the exceptions of two notable cases:

The Guayana Development Programme, and
The Programme of economic adjustments and Planning for the Sustainable Development of the country, which were designed and implemented by Dr. Miguel Rodríguez, an economist and the Minister of State, Head of CORDIPLAN, between February 2, 1989, and February 24, 1992, during the second government of Carlos Andrés Pérez in Venezuela during the 20th century.

Proper planning for all productive and service sectors in Venezuela was never effectively executed, in contrast to the practices of economically and socially developed countries.

Even the oil sector, which held significant potential, lacked the meticulous methodological design necessary for effective planning.

NORWAY

VALUES AND DEVELOPMENT PLANNING

Lessons for the reconstruction of Venezuela

Lifestyle. System of Justice and Guarantee of Compliance with Laws. Development Model and Long-term Strategic Planning for a Sustainable Economy. Work, activity that dignifies and exalts the nation.

Between 1983 and 1986 I had the opportunity to study at the University of Trondheim, now the Norwegian University of Science and Technology, NTNU, an experience that gave me a very particular vision of Norway in terms of its way of life and development model. At that moment, thanks to this experience, the discussion, and the doubt about which development model should be the most convenient for Venezuela ended for me.

Norwegian University of Science and Technology, NTNU

In Norway, from an early age, education involves basic and fundamental elements that range from honesty as part of its idiosyncrasy, its culture, and way of being, which follows of conduct that is consolidated in ethics, scale of values, where the focus of everything is the human being, society, its environment, the country, the planet, to live together in peace.

Values and principles for basic education

Values and principles for basic education are part of the curriculum, and it is determined by royal resolution on 1 September 2017 based on the Education Act § 1-5.

The main part applies to basic education in Norway. Basic education consists of primary school and upper secondary education. It thus includes the education children and young people receive from the first grade of primary school up to and including study preparation and vocational education programs in upper secondary education, where parts of the education take place in business and working life.

Human dignity

The school shall ensure that human dignity and the values that support it are used as a basis for the education and the entire activity.

The purpose clause is based on the inviolability of human dignity and that all human beings are equally valuable, regardless of what else separates us. When teachers show care for students and see the individual, human dignity is recognized as a fundamental value for the school and society.

Human rights have their basis in human dignity and are an important part of the foundation of the rule of law.

They are based on universal values that apply to everyone no matter who they are, where they come from and where they are. The Convention on the Rights of the Child is part of human rights and gives children and young people special protection. The education must be in accordance with human rights, at the same time as the students must acquire knowledge about human rights.

Democracy and participation

The school will give students the opportunity to participate and to learn what democracy means in practice.

The training shall promote support for democratic values and democracy as a form of government. It should give students an understanding of the rules of democracy and the importance of upholding them. Participating in society means respecting and endorsing fundamental democratic values such as mutual respect, tolerance, the individual’s freedom of belief and expression and free choice. Democratic values must be promoted through active participation in the entire training process.

The school shall promote democratic values and attitudes as a counterweight to prejudice and discrimination. The school must also create respect for the fact that people are different, and the students must learn to resolve conflicts in a peaceful way.

A democratic society is based on the entire population having equal rights and opportunities to participate in decision-making processes. The protection of the minority is a crucial principle in a democratic state governed by the rule of law and a democratic society.

A democratic society also protects indigenous peoples and minorities. The indigenous peoples ‘perspective is part of the students’ democracy education. All participants in the school community must develop awareness of both minority and majority perspectives and create space for cooperation, dialogue, and dissent. The work of cultivating diversity on the one hand and including the individual on the other requires a conscious view of values and the exercise of professional judgment.

The school should be a place where children and young people experience democracy in practice. The students must experience that they are listened to in everyday school life, that they have a real influence, and that they can influence what concerns them. They will gain experience with and practice various forms of democratic participation, both in the daily work in the subjects and through, for example, student councils and other council bodies. The dialogue between teacher and student, and between school and home, must be based on mutual respect. When students’ voices are heard in school, they experience how they can make their own conscious choices. Such experiences have value here and now and prepare students to become responsible citizens.

Accompanying this process, the solid Norwegian Justice System leads to the respect, strengthening and consolidation of values. To have values, one must not only count on the good education at home and at school. To coexist harmoniously in society, values also depend on an Adequate Justice System and the guarantee of compliance with laws.

Norway ranks as the fifth least corrupt country in the world, mainly because its legislation punishes corruption very harshly. Its Penal Code imposes sentences of up to 10 years in prison for crimes such as breach of trust, active and passive bribery, or money laundering, even if committed abroad. In addition, Norway enjoys the best press freedom index in the world, according to data from Reporters Without Borders.

When the goal is to live together in peace, around it all economic, political, and social aspects develop in a very healthy way, where solidarity is inside and outside the borders, where the forecasts are established so that there are no surprises in decades in the long run. In long-term country planning, as is the case of Norway, in more than half a century no major surprises have been observed in the economic or social scenarios. Assertive Development Planning is essential to consolidate the guarantee of respect and peace.

In modern history, Norway has not shown the world, inside or outside its borders, any profile close to that of a country with opportunistic intentions of taking advantage of other countries to the detriment of their inhabitants. Rather, it has always supported and offered its solidarity to the countries of the world with the greatest difficulties.

The social development achieved by Norway represents a much higher scale of living standards than those achieved by countries in Europe, Asia, the United States, Japan, China, Russia. Given its level of long-term planning, Norwegians do not suffer from the consequences of economic crises. There are no surprises. Everything is planned to have the human being, society, and peace in focus.

Norwegian National Day

Norwegians celebrate their national day differently than other countries. It is not a military parade where war power is exhibited with the presence of soldiers, tanks, and weapons of war.

May 17 is the quintessential children’s day, having the school as a natural centre with the flag hoist in the schoolyard, the school parades behind the banner of the respective centre, and the various types of games and entertainments in those involving teachers and parents. Dressed in a combination of red or blue, depending on the orientation of their studies, they are a colorful element of the celebration of May 17.

That day, people wear spring clothes, but the characteristic is to wear the bunad, a typical regional costume. Each of the regions has its own costume and the Norwegians mark, with this festive outfit, their identity, and their local and national belonging.

Norway, Energy, and Oil

The association of Norway’s standard of living with the development of its oil industry has recently been observed in the content of some opinion and information articles. It is important to emphasize that the standard of living, economic and social development achieved by the Norwegian society, never depended, nor has it depended, on its oil industry.

In the same way as the economic development of its neighbors, Sweden, Finland, and Denmark, its development was always based on the strengthening of the various areas of its economy, in the different regions of its geography. Its development, in addition to natural resources, has been based on work, thereby achieving the highest levels of quality of life on the planet. As reported by the Norwegian state, more than 90% of all profits from oil income, that is, more than one trillion dollars, is part of the Government’s Global Pension Fund, not to be used at present, but to reserve it for the pensions of future generations.

Dr Svein Richard Brandtzæg*, a Norwegian friend who was a classmate during my studies at the University of Trondheim, once sent me the following message:

“Norway, as you point out, saved the oil money for later use. We know that oil resources will be depleted, and by then, it is important that we are not finished in an economy that does not have the platform to sustain itself.”

*Dr Svein Richard Brandtzæg:

From 2009 to 2019, President and CEO of Norsk Hydro ASA, a Global and Integrated Energy and Aluminium Company with 36,000 employees in 40 countries

From 2014 to 2020, Chairman of the Board of Directors of the Norwegian University of Science and Technology, NTNU

Chairman of the Council of Ethics for the Norwegian Wealth Fund

As a reference, there are some similarities between Norway and Venezuela regarding the economic area, as both countries have been important producers of oil and aluminium, as well as important generators of hydroelectric power, aspects that we consider fundamental for the economic recovery of Venezuela.

CLEAN ENERGIES IN NORWAY

Since the late 1800s, Norway has generated most of its electricity from hydropower. More than 99% of electricity production in mainland Norway comes from hydroelectric plants.

Although hydroelectric power is dominant in Norway, the planning of productive and service sectors is not only focused on their immediate basic needs, but also on making the most of all the opportunities and potentialities the country has, as well as on the innovative capacity of its people, in this case, for the development of other renewable energies and technologies to make them work at their optimum level. Norwegian companies are pioneering in other areas: solar energy, marine energy, bioenergy production from wood, and energy storage.

GREEN HYDROGEN

This technology is based on the generation of hydrogen through an electrochemical process known as electrolysis. This method uses electric current to separate the hydrogen from the oxygen in water, thus electricity is obtained from renewable sources, producing energy without emitting carbon dioxide into the atmosphere.

In Norway, as part of Hydro’s strategic direction to strengthen its position in low-carbon aluminium and explore new growth opportunities within new energy sources, a green hydrogen company was established in early 2021 that will enable the change of hydrogen gas based on renewable energies in several of Hydro’s aluminium complexes, in addition to developing and serving the foreign market.

NORWAY AND CLIMATE CHANGE

Currently in all countries facing the global climate crisis, there is a substantial shift towards renewable energy sources as an environmentally sustainable alternative for power generation.

The following are the objectives that Norway has set itself with respect to climate change:

reduce emissions of harmful greenhouse gases and keep the increase in the planet’s surface temperature below 2˚C, the goal being to limit the increase in global warming to 1.5˚C

place the most vulnerable countries in a position to adapt to climate change

prevent the consequences of climate and natural disasters

prevent deforestation and thus reduce emissions of harmful greenhouse gases

ensure economic development and food security in the future

The following are the contributions provided by Norway for the fulfillment of the objectives:

supports the implementation of the Paris Agreement, the United Nations Sustainable Development Goals, and the Sendai Framework for Disaster Risk Reduction, all negotiated by UN member states

foresees the reduction of its own greenhouse gas emissions by 40 percent between now and 2030

contributes funds to international efforts against climate change through the Green Climate Fund (GCF, Global Environment Facility (GEF), the World Bank and and other funds and multilateral partners
is at the forefront of international engagement in the field of health and climate

promotes the gradual elimination of fossil fuel subsidies
favours sustainable urban development and the development of renewable energies, to promote sustainable social development and economic growth

contributes to the sustainable management of marine resources

Renewable energies are decisive

The energy sector accounts for more than 60 percent of greenhouse gas emissions. Therefore, access to renewable energy is key to sustainable development.

DEMOCRACY AND OIL PRODUCTION IN VENEZUELA

Venezuela: Some Lessons for Reconstruction

DEMOCRACY AND OIL PRODUCTION IN VENEZUELA

YEARS 1973 – 1998

THERE IS NO ECONOMIC AND SOCIALLY DEVELOPED COUNTRY IN THE WORLD WITHOUT THE IMPLEMENTATION OF AN ASSERTIVE PLANNING OF SUSTAINABLE DEVELOPMENT

A STABLE DEMOCRACY IS NOT POSSIBLE TO MAINTAIN WITHOUT ASSERTIVE PLANNING FOR SUSTAINABLE DEVELOPMENT

A comparative analysis must consider the pattern of the evolution of different countries within the same period, such as the Scandinavian countries, New Zealand, Singapore, among others.

What happened in this period that made Venezuela culminate with a negative trend in all economic and standard of living indicators compared to the countries mentioned above, which around the 1950s, some of them observed comparatively unfavorable conditions with respect to Venezuela? What plans and actions did the Venezuelan state implement to reverse this dangerous trend?

Figure 1. Real and per capita oil production in Venezuela 1970-2005. Source: ECLAC

Figure 2. Poverty in Venezuela, 1976-2006 (% of households or individuals)

LA ECONOMÍA DE VENEZUELA, 1975-2006. UN FRACASO DIFÍCIL DE ENTENDER

https://bdigital.ufp.pt/bitstream/10284/2547/3/37-56.pdf

PLANNING OF OIL PRODUCTION IN VENEZUELA

PERIOD 1973 – 2000

Venezuela is the leading country in terms of oil reserves, with more than 304 billion barrels of oil under its surface. Saudi Arabia is second with 298 billion, and Canada is third with 170 billion barrels of oil reserves. These do not include the oil reserves currently extracted from the continental shelf of the Essequibo Territory, under concessions from the government of Guyana.

Figure 3. The 15 countries with the most oil reserves

Venezuela also has the largest reserves of light crude oil in the entire Western Hemisphere.

Venezuela becomes the main exporter of oil in the world, and the second world producer of oil for the year 1958, a condition that it maintains for several years. Venezuela observed a sustained growth in oil production until the historical peak of the year 1970.

Figure 4. OIL PRODUCTION IN VENEZUELA, 1950-2012

https://commons.wikimedia.org/wiki/File:Venezuela_Oil_Production.png

Graphed data from OPEC website. Pre-1960 data is from US Bureau of Mines Minerals Yearbooks

Gráfico elaborado por https://commons.wikimedia.org/wiki/User:Plazak

The same information on Oil Production in Venezuela between 1943 and 2004 can be obtained in the work of Ramón Espinasa: The rise and collapse of PDVSA thirty years after nationalization.

http://ve.scielo.org/scielo.php?script=sci_arttext&pid=S1315-64112006000100010&lng=es&nrm=iso&tlng=es

In 1976, all the assets of the oil companies in the country were nationalized. In the year of 1975, President Carlos Andrés Pérez set the «execute» to the Law that reserves to the Venezuelan State the industry and trade of hydrocarbons, with which the oil industry was nationalized. However, it was not until January 1, 1976, that the Law for the Nationalization of the Oil Industry came into effect.

On that date, the property, plant, and equipment of the foreign concessionaire companies, as well as the assets of the Venezuelan concessionaires, became the property of the State, and it is the Republic of Venezuela that, from that moment and through a group of companies of its property, plans, resolves, finances, executes and controls each and every one of the activities of the oil industry.

In other countries, such as Norway, the State, although it allows extraction to private companies, intervenes in the oil industry through companies with majority state participation, such as the Norwegian case of Equinor, whose profits are deposited in the Norwegian sovereign fund » Norwegian Government Pension Fund”. This practice is also used by other oil producing countries.

Unfortunately, Venezuela did not have the vision that would allow it to plan what an oil country had to do, which was to increase its production to levels of 10 million to 12 million barrels of oil per day.

Countries such as Saudi Arabia, the United Arab Emirates, Kuwait, Iran, the rest of the OPEC countries, and other oil-producing countries had this clear vision and planning.

Venezuela, in addition to not having planned a level of oil production adequate to its possibilities and needs, was charged with the highest percentages of oil production cuts among the member countries of OPEC, with the serious consequences that this caused to the country.

Oil production in the country decreases, going from 3.7 million in 1970 until, in 1984, production does not reach 2 million barrels per day.

Production levels in the 1980s show values lower than the production levels observed during the 1950s.

With the multinational oil companies, Venezuela steadily increased its oil production, as can be seen in the positive trend that goes from 1950 to the historical peak of 1970.

As observed in Graph, from the comparison of oil production between 1973 and 2000, the production levels of Saudi Arabia, the United States and Russia are much higher than that produced by Venezuela in that period.

Figure 5. Oil production 1973 – 2000. Saudi Arabia, Venezuela, United States, Russia

The comparison of the average daily oil production of these countries in the period 1973-2000 is presented in Figure 6:

Figure 6. Comparison of the average daily oil production in the period 1973-2000 between Russia, the United States, Saudi Arabia, and Venezuela

Figure 7 shows the production of the world’s largest oil producers in the period 1960-2006, including Iran and the former Soviet Union.

As can be seen in Figure 7, Iran, in the years 1970-1980, reached production levels of around 5 million barrels per day, while the production of the former Soviet Union between 1980 and 1990 was close to 12 million barrels of oil per day.

Figure 7. The largest oil producers, 1960 – 2006

One aspect that can be observed in Figure 8, Oil Production–Price Variation in the period 1973-2000 in Venezuela, is the decrease in production below two million barrels around 1984, while prices are observed in levels between 27 and 37 dollars a barrel between 1981 and 1985.

Figure 8. Oil production – Price variation in the period 1973 – 2000

Dr Miguel Rodríguez, together with the President of Petróleos de Venezuela, PDVSA, Andrés Sosa Pietri, made it possible to achieve the only sustained growth trend in oil production achieved by the Venezuelan State in the history of oil production, thanks to the Comprehensive Development Programme designed and implemented by Dr Miguel Rodríguez in 1989.

Figure 9. Oil production in Venezuela with the Comprehensive Development Programme implemented, in box, period 1989-1997

The lack of proper planning of oil production in the analyzed period generated, and was accentuating over time, a greater damage to the living conditions of the neediest people, given the high degree of dependence of the economy on oil revenue.

Greater income from sales of increased oil production has very easily been able to leverage a more efficient development of other productive sectors, as has been done, for example, by the United Arab Emirates. In the same way, it was able to contribute to the improvement of the conditions of the habitat, housing, food, health, education, in general, in a better standard of living.

CONCLUSIONS

Unfortunately, in Venezuela the proper planning of the oil sector was not carried out, which was to increase production levels to values close to 10 million barrels of oil per day. Venezuela’s oil reserves have been among the highest in the world, so they undoubtedly justified, together with the growing needs of the population, high levels of production.

Dr Miguel Rodríguez, along with, Andrés Sosa Pietri, President of Petróleos de Venezuela, PDVSA, made it possible to achieve the only trend of sustained growth in oil production achieved by the Venezuelan State in the history of oil production. This achievement was possible thanks to the Development Programme designed and implemented by Dr Miguel Rodríguez in 1989.

The platform for sustainable development designed and implemented by the Economist, Dr Miguel Rodríguez, and with it the democracy and the life of the majority of Venezuelans, was destroyed by the vested interests of some political parties, right and left, along with some high-ranking businessmen, among others, from the media. These, with the fracture of democracy, prepared the scene that led to the loss of the Republic. (Especial Salida a la crisis de Venezuela Año 1992. Programa efectuado en julio de 1992 con YouTube.com https://www.youtube.com/watch?v=i13ibbmu_YA)

The platform for sustainable development designed and implemented by the Economist, Dr Miguel Rodríguez, and with it, democracy and the life of most Venezuelans, was destroyed by the vested interests of some right and left political parties, along with some high-ranking businessmen, among others, from the media. These, with the fracture of democracy, prepared the scene that led to the loss of the Republic.

The Reconstruction and Sustainable Development of the Nation must also necessarily consider the new world energy reality, especially in our case, due to the loss of importance that oil has experienced.

For some time now, the boom and expectations about the future use of oil as a fuel have diminished, mainly due to the problem derived from the generation of carbon dioxide emissions, one of the main sources of atmospheric pollution that contributes to increasing the effect greenhouse.

Currently, burning oil is responsible for 30% of carbon dioxide emissions into the air. In short: we are in a period of transition, and the decline of the oil and gas sector is politically at stake.

The energy industry itself is on the move. Oil companies like BP, Shell, Equinor, Total and ENI, though not so much the US oil majors, are investing in renewables, responding to pressure from consumers and investors.

World demand for oil is going to fall. The traditional indicator, oil per inhabitant, is going to be even lower than in the past.

The activity of the oil sector must be more competitive, low cost and low emissions. The processing of extra-heavy crude generates higher CO₂ emissions.

This scenario, however, exerts positive pressure to direct efforts towards adequate planning of all productive and service sectors.

With the installation of hydroelectric plants, Venezuela had already advanced to the stage of the Energy Transition.

GUAYANA DEVELOPMENT PROGRAMME

EXAMPLE AND VALIDITY OF PLANNING FOR DEVELOPMENT

ELECTRIFICATION OF THE CARONÍ RIVER

GUAYANA BUILDING VISIONARIES:

«Long-Term planning is not concerned with future decisions but with the future with current decisions» Peter Drucker

In 1953, the Venezuelan State created the Study Commission for the Electrification of the Caroní River (CEEC), attached first to the Ministry of Development, and chaired by General and Engineer Rafael Alfonzo Ravard, then to the Venezuelan Development Corporation, and later in 1960 to the Venezuelan Corporation of Guayana, CVG. In 1963, the company CVG Electrificación del Caroní, C.A., EDELCA, was officially established.

The following are the areas that were addressed by the Venezuelan Corporation of Guayana in this Long-Term Strategic Planning process for the development of the country, in the Guayana region, which, with the approval of the National Executive, had a close relationship based on a complementary vision with other regions of the country seen as a whole:

Electrification of the Caroni River
Interconnection with the rest of the country through high voltage lines
Forest and mineral resources: iron, bauxite, gold, diamonds, and other minerals
The CVG, with the creation of this development pole in the region, helps to mitigate somewhat the lack of planning in the distribution of the population, historically excessively concentrated in the strip that includes the Andes Mountain range, the state of Zulia, the coastal area from Falcón state to Sucre state, offering a harmonic habitat. It helped in this sense from the point of view of the deconcentration of the overpopulated areas that already existed, decentralization, and over time, to assimilate part of the population growth, taking advantage of the benefits and potential of the region. Ciudad Guayana went from having 4,000 inhabitants in 1951 to 700,000 thousand or more in the year 2,000
Agroforestry and agricultural development with the bringing of buffalo for the first time to Venezuela

VISIONARIES OF GUAYANA: THE WATER BUFFALO BREEDING AS A COMPLEMENT TO THE SOLUTION OF THE NATION’S FOOD CRISIS

https://juanguzman88.blogspot.com/2020/09/visionaries-of-guayana-water-buffalo-in.html

The beginning of the tests until the planting of the largest forest in the world planted by man, with around 600,000 hectares in Caribbean Pine forest plantations in Uverito, between the states of Anzoátegui and Monagas, for the production and marketing of boards wood for furniture and interior architecture as well as for house construction
Pellet plant, pre-reduced iron ore plants (briquettes)
Construction and installation of the steel complex and aluminium industries
Production of lime, necessary for the iron and steel industry, alumina, gold, for agriculture and water purification
Promotion and development of the small and medium-sized industry to cover the sectors: metalworking, maintenance, services
Construction of the City of Puerto Ordaz with its zoning, public services, hospitals, schools, Universities: UDO, UNEG, UNEXPO, urban and extra-urban communication routes. Construction of the Angosturita bridge at the mouth of the Caroní River with built-in railway

Figure 10. City of Puerto Ordaz

Promotion of industrial development in the region both in the public and private sectors
Ideas embodied for future projects such as the Orinoco-Apure Hub and the Orinoco-Amazonas River interconnection

Fortunately, that Long-Term Strategic Planning in the southern region of the country was so visionary that today, in 2023, all Venezuelans depend on an extraordinary platform that was conceived in 1953. Almost 70 years have passed, and it will continue for a few more decades. Hence, for the reconstruction of the country for the support of future generations, we are obliged to conceive and execute the 2022-2080 National Plan, at least at the level of the legacy left by our great Visionary Builders of Guayana.

VISIONARY BUILDERS OF GUAYANA

RAFAEL ALFONZO RAVARD LEOPOLDO SUCRE FIGARELLA

Figure 11. VISIONARY BUILDERS OF GUAYANA

RAFAEL ALFONZO RAVARD

In 1953 Rafael Alfonzo Ravard was appointed president of the Study Commission for the Hydroelectric Development of the Caroní River. He chaired the World Energy Council in 1954, the date from which Venezuela, first through the study commission and later through the company EDELCA, ELECTRIFICACIÓN DEL CARONÍ, became a permanent member. In 1958 he is appointed president of the Venezuelan Development Corporation and in December 1960 he is appointed president of the Venezuelan Corporation of Guayana, CVG.

In 1961 and under his presidency, the CVG signed an agreement with the Joint Center for Urban Studies of the Massachusetts Institute of Technology and Harvard University for technical assistance in the development and planning of a new and avant-garde urban nucleus, Puerto Ordaz.

Upon completion of the study and planning phase for the use of the Caroní River, the first hydroelectric plant in the country was built: Macagua I, intended to supply energy for the future industrial development of Venezuela.

In turn, the installation and construction of the iron and steel complex advanced, since for the reduction of iron ore, energy supply from the hydroelectric plant was a requirement.

Between 1965 and 1974, Alfonzo Ravard simultaneously held the presidency of EDELCA and the vice-presidency of Aluminio del Caroní, Alcasa. In 1973 he also assumes the presidency of Venalum, all companies attached to the CVG.

In 1963, the Guri hydroelectric project was launched, at the time, with the largest capacity in the world and one of the most colossal engineering works carried out in the history of Venezuela.

Alfonzo Ravard traces new horizons with agricultural development projects to provide agro-industrial products to the area; In 1969 he carried out the afforestation project in Uverito, in the south of Monagas state, where 26 million Caribbean pine trees were successfully planted.

LEOPOLDO SUCRE FIGARELLA

In 1962 Leopoldo Sucre Figarella was appointed Minister of Public Works during the government of Rómulo Betancourt, a term that lasted seven years, since President Raúl Leoni decided to keep him in office.

At the head of this ministry, several of the most important infrastructure works in 20th century Venezuela were built, such as Boyacá Avenue, La Araña Distributor and the second stage of Libertador Avenue, in Caracas; the «Rafael Urdaneta» bridge over Maracaibo Lake, «Angostura» over the Orinoco River and «José Antonio Páez» over the Arauca River; the Tejerías-Valencia, Valencia-Puerto Cabello, and Ciudad Bolívar-Puerto Ordaz-Upata highways, the expansion of the Simón Bolívar International Airport and the startup of the second stage of the Guri dam.

In 1984 he is appointed president of the Venezuelan Corporation of Guayana, with the rank of Minister of State.

In this position, he powers, intensifies and strengthens in an extraordinary way the development of the Guayana region, concluding and inaugurating the Guri hydroelectric plant, the Ciudad Bolívar-Ciudad Guayana and Ciudad Guayana-Upata highways; the El Dorado-Santa Elena de Uairén and Ciudad Bolívar-Caicara-Los Pijiguaos highways, including bridges over the Caura, Cuchivero, Suapure, Parguaza and Caroní rivers.

During his management, the works of the «Macagua» and «Caruachi» power plants were completed and the production capacities of the basic companies in the region were expanded: Sidor, Ferrominera, Venalum, Alcasa and Interalumina.

Likewise, during his management, the region’s health infrastructure was improved, with the construction of the Caicara, El Callao and Santa Elena de Uairén hospitals.

Almost 10 years of Engineer Leopoldo Sucre Figarella’s management at the head of the Venezuelan Corporation of Guayana were decisive for the consolidation of the Guayana Programme as the non-oil alternative, support of the Venezuelan economy.

LEOPOLDO SUCRE FIGARELLA. CONSTRUYENDO EL DORADO

https://youtu.be/IpgtIUXqvqc

The process of Planning the Economy of a country must necessarily go through the identification of the potential and opportunities of each region for its assertive use, hence the importance of the orientation of a Sectoral Planning based on the conditions and characteristics of each region.

Placing the Guayana Region as an example, this has a potential that has been harnessed for the installation and operation of industries associated with, in addition to the mineral resources it possesses, the electrical potential provided by the Caroní River. This experience in Guayana is clear evidence of Development Planning, linked to the benefits of its hydroelectric potential.

ELECTRIFICATION OF THE CARONÍ RIVER

Figure 12. ELECTRIFICATION OF THE CARONÍ RIVER

In 1953, the Commission for Special Studies for the Electrification of the Caroní River was created, with the aim of investigating and taking advantage of its hydroelectric potential. For two years, the Commission studies and explores the Lower and Upper Caroní and identifies possible sites for future Hydroelectric Power Plants, indicating the following places in Lower Caroní:

Salto La Llovizna, 10 km from its mouth
Paso Caruachi, 25 km upstream from Salto La Llovizna
Tocoma, 75 km upstream from Salto La Llovizna
The Nekuima Canyon, 100 km upstream from its mouth

In 1955, the preparation of the preliminary project for the Macagua I Hydroelectric Power Plant in El Salto La Llovizna began. On August 1, 1956, the construction of this Complex began with an estimated capacity of 372 MW, which was completed at the end of 1961, so that on April 8, 1962, the Orinoco Mining Company, the iron ore mining company from Cerro Bolívar received the first electrical power supply from Macagua I.

Motivated by the beginning of the exploitation of the hydroelectric potential of the Caroní River, the Venezuelan Corporation of Guayana CVG, formally constitutes the Electrificación del Caroní, CVG EDELCA, on July 23, 1963, an institution that will be in charge of continuing the project started in 1956.

In 1963, the contract for the construction of the Guri Hydroelectric Power Plant was signed, in the Nekuima canyon, 90 km upstream from Macagua I, so that in August 1963 work began on a 106-meter-high dam.

On November 8, 1968, Raúl Leoni, President of the Republic, set into operation the first 3 turbines of the Central, so that in 1978 the first stage would end, and immediately the second stage would begin to raise the capacity of the Guri Power Plant to 10,000 MW.

On November 8, 1986, President Jaime Lusinchi, inaugurated the last phase of the Power Plant to become the second Hydroelectric Power Plant in the world after ITAIPU, between Brazil and Paraguay.

Subsequently, President Jaime Lusinchi, on June 7, 1988, inaugurated the construction works of the Macagua II Power Plant next to Macagua I, for an estimated capacity of 2,540 MW, which entered into service on January 23, 1997, being inaugurated by President Rafael Caldera.

In this same year, 1997, the construction of the Caruachi Hydroelectric Power Plant began, 25 km upstream from Macagua I and II with a capacity of 2,196 MW, which entered into operation on March 31, 2006.

Finally, the construction of the Tocoma Hydroelectric Power Plant, 15 km downstream from the Guri Hydroelectric Power Plant with an estimated capacity of 2,160 MW began and was expected to be completed by mid-2012. In 2022, this work has not been completed.

Later, CVG EDELCA C.A would focus on the hydroelectric development of Alto Caroní in places known as: Tayucay, Aripichi, and Eutobarima. The following Table shows the hydroelectric capacities and potentialities of the Guayana region.

Figure 13. Hydroelectric Potential of the Guayana Region

As backup and complement to the National Electric System consisting of a series of Thermoelectric Plants located in the rest of the territory, the interconnection with part of the rest of the country was installed through high voltage lines. Support and complement of the National Electric System, which for the year 2000 would mean the use of Thermoelectric Plants and Hydroelectric Plants in a process of alternating supply balance depending on the season or periods of drought and/or rain, that is, during the lowering or raising of the levels of the dams.

For the year 2000, the total electricity supply capacity of Venezuela was designed and made up of 40% of the supply capacity coming from thermoelectric plants, and 60% coming from hydroelectric plants. Thermoelectric generation has always had a sufficient design capacity to supply energy to the country’s demand in dry years. As the design of hydroelectric generation depends on rainfall, there is always a guaranteed minimum value in dry years.

During the dry season, the hydroelectric plants would work at a lower intensity, being compensated with a greater use of the capacity of the thermoelectric plants, and vice versa, in rainy seasons when high levels of water are generated in the dams, there would be energy reserves from hydroelectric power plants. In this way, an uninterrupted electrical service was guaranteed for the entire country.

The Plan for the Supply of Electric Power nationwide, period 2003–2012, presented by Engineer Ángel Negrín on behalf of CVG EDELCA, at the XXXVI Round Table on the Electricity Industry, Advances in the Reform of the Venezuelan Electricity Sector, in Barquisimeto, Lara State, in September 2002, contemplated a scheduled new generation goal of 9,930 megawatts to reach a grand total of approximately 30,000 megawatts by the year 2012.

The criteria considered in the plan for the preparation of demand-generation balances, among others, included:

an average year-on-year growth of 4.5%
the new oil developments that were known at the time
the new industrial developments in Guayana: for the aluminium industry, the V Line of Alcasa and the VI line of Venalum, the Danielli Iron and Steel Project, the Serfoca Forestry Project, for the production of newsprint, an item that does not exist in the country and of which were imported for the year 2003, 140,000 tons per year to supply national and regional newspapers

MINERAL RESOURCES

VISIONARIES OF GUAYANA. MINERAL RESOURCES

https://juanguzman88.blogspot.com/2020/08/visionaries-of-guayana-mineral-resources.html

The Guayana Region has the energy and natural resources to be a power in the production of iron, steel, aluminium, and the installation of an associated industrial park. It is a land of enormous deposits of different metallic and non-metallic minerals, among which are iron, bauxite, gold, manganese, titanium, granite, coltan, diamond, among others.

Thanks to the great positive impact on the economic and social development of the Guayana Region and the country, the greatest emphasis on the use of mineral resources has been directed for several decades, to iron, for the production of steel, and to bauxite, for the production of alumina (aluminum oxide), and from it, for the production of aluminium.

IRON

CVG Ferrominera Orinoco C.A. arises as a consequence of the nationalization of the iron ore industry. The two North American companies that were responsible in Venezuela for the exploitation and commercialization of iron ore in the Guayana deposits since the end of the 1940s were:

· Iron Mines Company of Venezuela
· Orinoco Mining Company

The initial activities began with the exploitation of ore from Cerro El Pao, located east of the Caroní River, 50 km from Ciudad Guayana. In 1974, the iron industry was nationalized, and the minutes’ agreement was approved between the Venezuelan Corporation of Guayana, CVG, and the companies Iron Mines Company and Orinoco Mining Company, and their parent companies.

In 1975 the Venezuelan State, through the CVG, assumes direct control and exercises the right of full ownership of the Iron Industry, as well as complete management.

Located in the vicinity of Ciudad Piar, in the south of Bolívar State, Cerro Bolívar and Cerro Altamira deposits were the first two to be exploited. Later, Cerro Redondo, Cerro Los Barrancos and Cerro Las Pailas, among others of smaller size, thus forming what is called the San Isidro Iron Quadrilateral.

The San Isidro mine began operations in 1985, and at the same time Ferrominera was advancing plans to support the mining development of the Pijiguaos (Bauxite), the rescue of the Minorca Plant and its supply with mineral from the company, and the Construction of the Iron Ore Transfer System to increase export capacity and conquer new markets.

CVG Ferrominera Orinoco C.A. as an exploiter and processor of iron ore, has a current installed capacity of 24 million tons/year. This is generated in:

Mines (Extraction and Mineral Processing): 24 MM t/year
Pellets Plant (Pre-reduced): 2.5 MM t/year
Briquette Plant (Steelworks): 1.5 MM t/year

A Second Pellet Line of 2.5 MM t/year and a Quartzite Concentration Plant are currently under construction to process 12 MM t/year and produce 8 MM t/year.

With proven reserves of 4,200 million tons (MM t), the company carries out its own mineral transport between the mines and the production centers, and at the same time between these and the docks through a system of railways and ships. Additionally, it has a Transfer Station in open waters at the mouth of the Orinoco River with a storage capacity of 180,000 t, which allows it to carry out movements of more than 6 MM t/year.

BAUXITE

The Guayana Shield is very prolific in mineral deposits, among which large extensions of bauxite can be found, one of which is already commercially exploited in the Cedeño Municipality of Bolívar State, specifically in Los Pijiguaos area where CVG Bauxilum operates a mine that It has a current installed capacity of the order of six million tons per year.

In 1985, CVG Ferrominera Orinoco (FMO) company, with the intervention of its teams of geologists and mining engineers, designed and established the initial exploitation plan for the CVG Bauxiven company, as a technical contribution between companies of the same CVG group.

On March 24, 1994, the merger of CVG Bauxiven and CVG Interalumina, the mine, and the refiner, for the production of alumina gave way to the company we know today: CVG Bauxilum.

Bauxite is extracted at Los Pijiguaos mine, to later be transported, processed, and converted into alumina at the Puerto Ordaz Plant. A portion of the alumina produced is destined for the local market, with the main customers being CVG Alcasa and CVG Venalum, additionally, there are also smaller customers such as abrasive producing companies, ceramic industries, water treatment plants, among others. The rest of the alumina not consumed nationally is exported, with CVG Bauxilum having its own port facilities for such purposes.

In addition to the already commercially exploited bauxite deposit in Los Pijiguaos, preliminary studies have shown the existence of various bauxite deposits in the Guayana Shield. The analyzes carried out indicate that the inferred resources in granitic rocks could reach 2,621 MMt in the entire Guayana region, with alumina percentages of up to 52%, and specifically it is considered that the inferred resources in El Palmar area are of the order of the 475 million tons.

In 2009, in a study carried out by the Universidad de Oriente, Núcleo Bolívar, the potential areas of inferred bauxite resources were evaluated in the former “Río Grande I Concession”, in the El Palmar deposit. In this way, the inferred resources are 475,000,000 tons for a depth of 4 meters and 270,000,000 tons for a depth of 2 meters. For both cases, the tonnage was increased, if compared to the CVG Tecmin report of 1989, where the inferred resources were initially established at 150,000,000 tons.

All the information on the history, mineral resources and exploitation methods of Los Pijiguaos bauxite mine is available in the document prepared by the Geologist Engineer and Specialist in Mining Technology, Noel Mariño, at the link:

https://acading.org.ve/wp-content/uploads/2023/02/TI_NOEL_MARINO.pdf

Under the management of Engineer Noel Mariño as General Manager of Operations, it was possible to reach in 2006 the highest production level in the history of Los Pijiguaos Bauxite mine, with a crushed production of 5,927,839 tons and 5,764,053 tons of barge cargo.

The El Palmar area is close to the Orinoco Delta, the CVG Bauxilum alumina plant, as well as the Deltana Platform gas developments. The commercial exploitation of the El Palmar deposit offers the National Executive options for attracting foreign investment, opening to private capital, job creation, economic reactivation, territorial deconcentration of highly populated areas, and starting functions by executing projects with a great impact on the economy. Investors can develop greenfield-type projects, both in the industrial park and in the urban area.

As the production of aluminium in Venezuela has the advantage of a bauxite mine and an alumina plant, the production of aluminium does not incur in costs of freight, unloading, and handling of alumina, thus considerably reducing the cost of production and therefore improving the profits. Similarly, the country has sufficient hydroelectric infrastructure located in the same state where the aluminium industrial park is located, so electricity costs are highly competitive.

STEEL AND ALUMINIUM INDUSTRIES

STEEL

The iron and steel industry in Guayana is developed taking advantage of the extraction of iron ore. Siderúrgica del Orinoco, SIDOR, was created for the production of flat and tubular products, slabs, and billets. Sidor was established in 1963, reaching a production of 1,250,000 tons per year in 1971. In the period 75-79, Sidor’s Plan IV was carried out to produce 4,800,000 tons of steel products, culminating in the flat products plant in 1975 and starting up in 1978, the pellet plant, the Direct Reduction plant, the billet steelworks, and slabs.

In 1996, Sidor reached a maximum steel production of 3,100,000 t.

In 2007, after ten years of Sidor’s privatization, the steel plant went from producing 2,800,000 to 4,300,000 tons of steel.

El derrumbe de Sidor, la siderúrgica de Techint estatizada en Venezuela: pasó de 4,3 millones de toneladas de acero por año a producir nada

https://www.infobae.com/economia/2020/01/27/el-derrumbe-de-sidor-la-siderurgica-de-techint-estatizada-en-venezuela-paso-de-43-millones-de-toneladas-de-acero-por-ano-a-producir-nada/

ALUMINIUM

INTEGRATED PRODUCTIVE CHAIN OF ALUMINIUM

In order to take advantage of the hydroelectric potential of the Guayana Region, the construction of Aluminio del Caroní, Alcasa, began its operations in 1967 with an annual production capacity of 10,000 tons, reaching a capacity of 50,000 tons per year in1973. In 1978, Alcasa expanded its production capacity to 120,000 t/year, and later to 200,00 t/year.

In 1975 the construction of Venalum began, producing in 1978, 70,000 tons per year. The construction of its 4 cell lines with Reynolds Technology, for an installed production capacity of 280,000 t/year, was completed in 1980.

After introducing the improvements for the modernization of its original cells, and additionally building the V-Line with Hydro Technology, Venalum reached an installed production capacity of 430,000 t/year, until 2008 when the power supply was cut off.

In 1977, construction began on the alumina refining plant, Interalumina, with an installed production capacity of 1,600,000 tons of alumina per year. In 1978 bauxite reserves suitable for the production of alumina were discovered, thus guaranteeing the productive chain of the aluminium sector. Between 1984 and 1987, the Bauxivén bauxite extraction plant was built in Pijiguaos, 650 km upriver from the Orinoco.

THE MISSED OPPORTUNITY, AND WITH IT, THE LOSS OF DEMOCRACY AND THE REPUBLIC

EVENTS THAT HAVE ADVERSELY IMPACTED DEMOCRACY AND HINDERED THE PROGRESS OF OUR NATION HAVE ALSO DISRUPTED THE CONTINUITY OF THE GUAYANA PROGRAMME

https://juanguzman88.blogspot.com/2023/10/brief-history-of-dr-miguel-rodriguez.html

Dr Miguel Rodríguez, Minister of State, Head of CORDIPLAN between 1989 and 1992 during the second government of Carlos Andrés Pérez.

MIGUEL RODRÍGUEZ, PROPOSALS TO SOLVE THE VENEZUELAN ECONOMIC CRISIS, VENEZUELAN FINANCE OBSERVATORY, ECONOMIC STABILIZATION PROGRAMMES. VIDEO PART II

Propuestas para resolver la crisis económica de Venezuela | Miguel Rodriguez Parte 2 Emitido en directo el 16 jun 2021

https://youtu.be/PMqyk7kD_DI

DR MIGUEL RODRÍGUEZ: 36 MINUTES OF REAL HISTORY OF VENEZUELA. AUDIO ON ECONOMY, DEVELOPMENT, POLITICS AND HISTORY OF VENEZUELA

https://www.youtube.com/watch?v=itzXxv-d5Uk

As evidenced, the Guayana Region Development Programme, its planning and execution, although interrupted, has constituted a powerful platform for the Integral Development of the Nation. There is no doubt about the need for its continuity as a great support for the upcoming process of reconstruction of the country.

A summary of the analysis carried out by Dr Miguel Rodríguez in his CONFERENCE: PROPOSALS TO SOLVE THE VENEZUELAN ECONOMIC CRISIS, ECONOMIC STABILIZATION PROGRAMMES, VENEZUELAN FINANCE OBSERVATORY, and his AUDIO ON ECONOMY, DEVELOPMENT, POLITICS AND HISTORY OF VENEZUELA, is presented.

The following were the most outstanding aspects of the management of Dr Miguel Rodríguez as Minister of Planning:

The oil programme was accelerated, which was the only one since the time of Pérez Jiménez that in two years increased oil production by 700,000 barrels.

With the Comprehensive Development Programme designed and implemented by Dr Miguel Rodríguez in 1989, a second positive trend of sustained growth in historical oil production in Venezuela can be observed, which generated inertia in the increase in production experienced until 1997. This trend can be seen in box.

Oil production in Venezuela with the Development Programme designed and implemented by Dr Miguel Rodríguez, in box, period 1989-1997

Dr Miguel Rodríguez, along with Andrés Sosa Pietri, President of Petróleos de Venezuela, PDVSA, made it possible to achieve the only trend of sustained growth in oil production achieved by the Venezuelan State in the history of oil production. This achievement was possible thanks to the Comprehensive Development Programme designed and implemented by Dr Miguel Rodríguez in 1989.

Figure 13. OIL PRODUCTION IN VENEZUELA, 1950-2012

https://commons.wikimedia.org/wiki/File:Venezuela_Oil_Production.png

Graphed data from OPEC website. Pre-1960 data is from US Bureau of Mines Minerals Yearbooks

Gráfico elaborado por https://commons.wikimedia.org/wiki/User:Plazak

The same information on Oil Production in Venezuela between 1943 and 2004 can be obtained in the work of Ramón Espinasa: The rise and collapse of PDVSA thirty years after nationalization.

http://ve.scielo.org/scielo.php?script=sci_arttext&pid=S1315-64112006000100010&lng=es&nrm=iso&tlng=es

He introduced the creation of the Macroeconomic Stabilization Fund, the Venezuelan Sovereign Fund, to Congress in 1991, before Norway introduced in Congress, and approved the resources for its fund. “The life of oil is the volatility of prices, that is why we should have a macroeconomic stabilization fund that would become a sovereign fund, not discretionary like the Investment Fund of Venezuela, but a parametric fund that would sterilize price increases from a reasonable price of oil that would inject into the economy the profits derived only from the increase in oil production”.

Dr Miguel Rodríguez was the first to propose this systematic sovereign fund in the world. Norway today has a trillion dollars in that fund. Venezuela would have hundreds of billions of dollars in its fund. Venezuela would be a fully developed country if this fund had been approved in Congress. We would have had the most extraordinary, developed, thriving, totally democratic country in the last 23 years.

The program of economic adjustments proposed and undertaken that sought to refinance the external debt and prevent the country from going bankrupt had great success in the economic field, by managing to lower inflation and promote growth that reached 9% year-on-year of GDP in just three years, projecting values above 10% for subsequent years.

In this way, the phenomenal crisis of the average debt received from Jaime Lusinchi in his 5 years of government, which was 4,500 million dollars per year, was addressed. The commitment to service the debt was fulfilled with the payment of 6,500 million dollars in letters of credit, to restructure the economy for stabilization, and the next step, to carry out the Economic Development Programme that immediately had to be undertaken.

RECADI CEASED OPERATIONS AND WAS DISSOLVED IN 1989, WHEN THE DIFFERENTIAL EXCHANGE RATE SYSTEM WAS ABOLISHED.

That was The Great Turn, the development planning to turn Venezuela into a producer of 10 million barrels of oil and derivatives per day, and into a great exporter of industrial, mining, tourism, high-tech, and agricultural products, which is what corresponds to an economically and socially developed country.

A solid democracy is built, consolidated and sustained on the basis of an assertive long-term development plan. The Venezuelan political sector blocked these reforms and destroyed in 1993, the great development programme designed and initiated by Dr Miguel Rodríguez, after Venezuela achieved the highest level of economic growth in the world, as recognized by the prestigious Fortune Magazine.

Figure 14. Headline of El Nacional on the economic growth of Venezuela. Source: Fortune Magazine, November-December 1991

THE MISSED OPPORTUNITY, AND WITH IT, THE LOSS OF DEMOCRACY AND THE REPUBLIC

VISION OF THE ECONOMIST DR MIGUEL RODRÍGUEZ ON THE PROCESS OF PLANNING FOR DEVELOPMENT, AND HIS CONTRIBUTION TO THE ESSENTIAL TRANSFORMATION OF VENEZUELA INTO AN ECONOMICALLY, SOCIALLY DEVELOPED, AND FULLY DEMOCRATIC COUNTRY

The Vision of the Economist Dr Miguel Rodríguez was to turn Venezuela into a large exporting country of products from different productive and service sectors. To do this, policies had to be introduced that would produce a structural change, first, by expanding the oil sector, but expanding other sectors of the economy that could become export sectors.

Significant efforts in this direction, which should have continued, were made in Guayana to produce that great structural change that would definitively turn Venezuela into a country with high economic growth, since it had the resources to do what Japan, South Korea, and China did.

MAIN EVENTS THAT TO THE DETRIMENT OF DEMOCRACY AND THE DEVELOPMENT OF THE NATION AFFECTED THE CONTINUITY OF THE PROGRESS ACHIEVED IN THE DEVELOPMENT OF THE GUAYANA PROGRAMME

https://juanguzman88.blogspot.com/2023/10/guayana-development-programme.html

The contraction of the economy in 1979 during the government of Luis Herrera Campíns when oil prices increased again. These reached levels never seen before, with an average, during the 5 years of his government period, above 30 dollars per barrel.

Luis Herrera Campíns rescinds the programme for the diversification of the economy that had been initiated, markedly affecting Ciudad Guayana between 1979 and 1983. There was no justification for paralyzing the economy, the Guayana projects, the fundamental projects that were running.

The strategy of economic cooling of the government of Luis Herrera Campíns had a very drastic impact in the Guayana region with the first devaluation of the bolivar after having been maintained for decades at a fixed exchange rate of 4.30 bolivars per dollar.

The Differential Exchange Regime Office (RECADI) was an exchange control system in Venezuela implemented during the government of Luis Herrera Campíns that operated between February 28, 1983 (ten days after Black Friday) and February 10, 1989, to regulate the delivery of foreign currency.

It was established to manage a system of differential exchange rates and capital controls.

On June 15, 1987, in compliance with presidential decree No. 1,544, RECADI ceased operations and was dissolved in 1989, when the differential exchange rate system was abolished.

On February 24, 1989, an investigation was opened by presidential order against RECADI for alleged financial fraud. RECADI constituted a gap in the history of Venezuelan corruption.

Black Friday represents a milestone that changed the economic history of Venezuela. Until that day, the stability and reliability that had characterized the bolivar since the second decade of the 20th century was officially maintained, whose last free price against the dollar was at the fixed value of 4.30 bolivars. Since then, the constant devaluation of the bolivar, complications with the payment of the external debt, the accelerated deterioration of purchasing power and the implementation of RECADI, have made the stability of the Venezuelan currency disappear.

The economy begins to fall rapidly with the contraction of public spending and the paralysis of very important investment projects in the country. Beginning in 1981, the largest capital flight in the history of Latin America began, involving all funds in dollars deposited in

Banco Central de Venezuela, BCV, TWELVE BILLION DOLLARS IN RESERVES ($ 12 BILLION)

Fondo de Inversiones de Venezuela, FIV, NINE BILLION DOLLARS ($ 9 BILLION)

Petróleos de Venezuela, PDVSA, NINE BILLION DOLLARS ($ 9 BILLION)

The public sector had approximately THIRTY BILLION DOLLARS ($ 30 BILLION) in international banking deposited at the end of 1981 with the paralyzed economy falling into a tailspin. The liabilities did not reach 15 billion dollars. They had approximately 2 and a half times the amount of dollars deposited in the bank than what was owed to the bank.

Capital flight was the real origin of the external indebtedness, it was not because of the Guayana companies. There, in the government of Luis Herrera Campíns, the process of the disaster in Venezuela began, which continued in the first two years of the government of Jaime Lusinchi. Even with high oil prices, the same story repeats itself.

There was free currency convertibility, an economic policy disaster that began to liquidate the Venezuelan economy and open all the space to that immense and perverse redistribution of wealth, which represents, at the current value of the dollar, a total amount in the order of 145 billion dollars (US $ 145,000 MM).

In 1992 the coup was present. Two military coups were frustrated.

The defenestration of Carlos Andrés Pérez in the years 1992 and 1993.

The terrible crisis from which Venezuela has not been able to emerge has its origin in the 1990s. Venezuelan democracy was destroyed in the years 1992-1993 after Venezuela, in 1991, achieved the highest level of economic growth in the world, according to the prestigious Fortune Magazine (November-December 1991).

The platform for sustainable development designed and implemented by the Economist Dr Miguel Rodríguez, and with it, the democracy and the life of most Venezuelans, was destroyed by the vested interests of some political parties, from the right and from the left, together with some high-ranking businessmen, among others, from the media. These, with the fracture of democracy, prepared the scene that led to the loss of the Republic. (Especial Salida a la crisis de Venezuela Año 1992. Programa efectuado en julio de 1992 con YouTube.com https://www.youtube.com/watch?v=i13ibbmu_YA)

The Guayana Programme was once again severely affected starting in 1993, after the events that led to the ouster of Carlos Andrés Pérez, and later, during the second government of Rafael Caldera.

In the 1990s, Venezuela’s GDP per capita was half that of Argentina, and 40% less than that of Chile, largely due to the disaster of the economic policies of Rafael Caldera government and the virulent contraction of GDP per capita in that disastrous five-year period of more than 13%. These events, and others that will happen in this decade, accelerate situations that have a negative impact on the economic and social development of Ciudad Guayana and the Nation.

THE UNSUCCESSFUL PRIVATIZATION ATTEMPT OF ALUMINIUM COMPANIES

The privatization process of the Steel Company, SIDOR, was successful. The way in which the privatization process is carried out in the case of the aluminium companies in the years 1996 -1998:

Senior government officials under President Rafael Caldera's administration, tasked with overseeing the privatization process, presented aluminium companies to potential investors as having minimal value. They justified this by emphasizing that selling these aluminium companies was imperative for the country due to the government's inability to finance the substantial investments needed to modernize the entities within the Venezuelan Aluminium Corporation, which were slated for privatization. They also cautioned that these companies would likely cease operations within a year due to their deteriorating condition, making them unattractive for acquisition or donation.

VENEZUELA: El sector del aluminio no tiene quien lo compre

VENEZUELA: Agresiva privatización acompaña plan de ajustes

Ejecutivo ratificó privatización de las empresas del aluminio para I trimestre de 1998

VENEZUELA: Comienza cuenta regresiva para privatizar el aluminio

FRACASA VENTA DE EMPRESAS DE ALUMINIO EN VENEZUELA

PLANT IMPROVEMENTS AND CONSTRUCTION OF THE V-LINE IN VENALUM

The V-Line construction project and installation of all HAL-230 Hydro Technology cells were completed in early 1990s.

In the same way, the modernization project of the cells of complexes I and II was carried out with the following improvements:

installation of busbar system for magnetic compensation of the cells
alumina point feeding system
aluminium fluoride system
automated cell control system
cell information and supervision system
improvements were also made to the auxiliary systems of the cell rooms: cranes, material handling systems, gas treatment system for environmental protection

With the new line of cells, the V-Line, and with the modernization of cells in the Complexes, the Venalum reduction area was updated to the state of the art in reduction technology in the world. Venalum was then preparing to reap the fruits of that investment since that decade. This technology, today, in the year 2022, is efficient, productive and above all profitable, not being far from the state of the art.

Additionally, improvements were made that should accompany the reduction process: in the carbon area to introduce improvements in the anode quality, and in the casting area: furnaces, casting tables for the manufacture of cylinders for extrusion, among other improvements.

The year 1990 also served for the successful start-up, commissioning and performance of the Venezuelan Aluminium Reduction Technology, The V-350 Cell, designed by Venalum engineers, and whose purpose was the design of a CVG Venalum proprietary technology that serve as technology for new aluminium projects, both, for Venalum and for projects with international private investment in Venezuela, an initiative that was supported by the Minister of State and President of the Venezuelan Corporation of Guayana, Engineer Leopoldo Sucre Figarella.

Figure 15. Plaque of recognition of the Minister of State President of the Venezuelan Corporation of Guayana, Engineer Leopoldo Sucre Figarella on the startup of The V-350 Cell on June 9, 1990. Photo: CINTAL

Bauxilum is the company resulting from the merger in March 1994 of the Bauxite Mine, Bauxiven (created in 1979) and the Alumina Plant, Interalumina (created in 1977).

Subsequently, Venalum, Alcasa, Bauxilum and Carbonorca were integrated into the Aluminium Corporation of Venezuela, CAVSA, holder of shares for the sale process of the companies.

In practical results, for the year 2005 CVG Bauxilum closes with a historical production record by producing 1,950,000 tons of alumina that year. Additionally, Los Pijiguaos bauxite mine reached a production figure of 5,927 millions tons or 98.8% of its installed capacity in 2006, demonstrating the optimal conditions of the refiner’s systems, as well as the technical and managerial capacity that Bauxilum had in almost all its history. At least, until that time.

As mentioned above, CVG Venalum was, at that time, recently modernized, and with new technologies incorporated in the construction of the V Line.

If they say that Venalum was so deteriorated, why 10 years after that failed privatization process, the plant still operated at its installed capacity of 430,000 t/year, and with world-class efficiency and productivity results until the year 2008 when the power supply was suspended?

Between January 1998 and December 2008, Venalum’s sales revenues were in the order of 8 billion US$ (8,000 MM US$).

The operating conditions of CVG Venalum, as well as its management and administration, demonstrated the magnitude of the extraordinary business that results from the integrated aluminium industry when it is managed and administered with criteria of excellence.

In 1994, CVG Venalum’s Research and Development Team, simultaneously with its activities, dedicated itself to promoting the aluminium sector as one of the most important options to accompany oil in supporting the national economy, with the organization of the 1st. National Seminar of the Aluminium Sector, Sensa 94.

Figure 16. Enlace

During the time of the privatization process, 1996-1998, CVG Venalum Research and Development Team focused on structuring a National Aluminium Plan, as well as on promoting the aluminium industry, and the expansion of installed capacity. This work shows an important advance during 1999, and in the year 2000 the Research and Development Centre of CVG Venalum coordinates the representation of the Venezuelan Aluminium Sector in our National Pavilion at EXPO 2000 Hannover in Germany, and in the Aluminium Symposium 2000 in Puerto Ordaz.

In both events, the promotion of the country’s potential for the efficient production of aluminum is formally relaunched, thus reversing the smear campaign that had been maintained on this important link in the national economy. Likewise, the new Project of the V Line of CVG Alcasa, based on the use of National Technology, The V-350 Cell, is presented for the first time, also considering important aspects for the recovery of CVG Alcasa.

The image of the Venezuelan Aluminium Sector was again strengthened in 2003 through participations organized by the Research and Development Centre of CVG Venalum in the Aluminium and Energy Congress in South Africa, and the Congress of the Commodities Research Unit (CRU) in the United States, where the international community of the aluminium business was formally shown the new approach that Venezuela would be giving to the sector. In 2004, Venalum also participated in the TMS 2004 Congress (United States) where the CVG Venalum Expansion Plan, which includes the Sixth and Seventh Lines, is shared with the international community.

In 2004, at the request of Marubeni Corporation, a meeting was held between this corporation, CVG and CVG Venalum to discuss in Puerto Ordaz with the Japan Bank for International Cooperation (JBIC) about the financial proposal tentatively offered by Marubeni Corporation for the construction of the VI Line of CVG Venalum.

Banca japonesa quiere financiar proyectos de CVG

https://www.voltairenet.org/article122748.html

Figure 17. Venezuelan Aluminium Industry, C.A., CVG Venalum. In the background, the design of the capacity expansion project for lines VI and VII. Photo and Design: CINTAL

As it has been shown around the world, well-managed aluminium business never becomes an economic burden on the state. With its income and savings, in the short, medium, and long term, it guarantees the coverage of all its operating, administrative, and financial costs, the payment of taxes to the government, major maintenance and improvements to the plant, as well as the economic muscle to be able to finance with its own resources its projects to expand production capacity, growth, and diversification.

Figure 18. Industria Venezolana de Aluminio, CVG Venalum, still in times of operational, technical, and managerial excellence. Source: La Noticia, CVG Venalum, Año 2, Nº 04, Enero-Febrero de 2003

CONCLUSIONS

The GUAYANA DEVELOPMENT PROGRAMME is clear evidence of Development Planning of extraordinary validity linked and materialized with the benefits of the hydroelectric potential provided by the Caroní River.

This methodological design must be applied to all productive and service sectors: food, agriculture, livestock, fishing, iron and steel, forest-wood, mining products, high technology, among others.

Given our current scenario, and that the program of economic adjustments proposed and undertaken in 1989 by Dr Miguel Rodríguez, which sought to refinance the external debt and prevent Venezuela from going bankrupt, had great success in lowering inflation and promoting growth that reached 9% year-on-year of the GDP in just three years, it is essential, as this is the only successful experience of its kind in the history of the Venezuelan economy, the guidance and leadership of Dr Miguel Rodríguez to structure the Economic Recovery and Transition Plan.

The Vision of the Economist Dr Miguel Rodríguez, of turning Venezuela into a large exporting country of products from different productive and service sectors, should serve as an orientation and guide for the Planning process for Sustainable Development through the introduction of policies that generate the necessary structural change within the oil sector, as well as in other sectors of the economy that could become export sectors.

Important efforts in this sense which should have continued, were made in Guayana in order to produce that great structural change that would definitely turn Venezuela into a country with high economic growth, since it had the resources to do what Japan, South Korea, and China, had been doing.

Thanks to the management of Dr Miguel Rodríguez, the entire Lower Caroní Development Programme was accelerated. All resources were injected into Macagua II. Dr Miguel Rodríguez fully assembled the investment programme for the Caruachi Hydroelectric Power Plant. With the Tocoma Hydroelectric Plant, we would already have at least two reduction plants of more than half a million tons of aluminium per year each, accompanying Venalum and Alcasa in full production, as well as the entire aluminium chain that Venezuela installed.

This was the great opportunity to shield once and for all the Sustainable Development of Venezuela, with these two successful and emblematic figures: Dr Miguel Rodríguez, and Ing Leopoldo Sucre Figarella, forming a team to reaffirm and guarantee the validity and continuity of the GUAYANA DEVELOPMENT PROGRAMME, which gave the country great strength on the threshold of the 21st century.

RECONSTRUCTION, SUSTAINABLE DEVELOPMENT, AND THE NEW WORLD ENERGY REALITY

RECONSTRUCTION, SUSTAINABLE DEVELOPMENT, AND THE NEW WORLD ENERGY REALITY

In today's rapidly evolving global landscape, the intersections of reconstruction, sustainable development, and the emerging energy paradigm are becoming increasingly crucial. This article delves into the intricate relationship between these three pillars, shedding light on their significance in shaping the future of our world.

Reconstruction, the first pillar, represents the process of rebuilding and revitalizing communities and economies in the aftermath of various crises, such as conflicts, natural disasters, or economic downturns. In a world marked by ever-increasing uncertainties, the need for resilient and adaptable reconstruction strategies cannot be overstated. Sustainable development, the second pillar, complements this notion by emphasizing the importance of long-term, environmentally friendly solutions that prioritize the well-being of both current and future generations.

The nexus between reconstruction and sustainable development is where innovation truly thrives. By integrating sustainable practices into the reconstruction process, we can catalyze positive change that extends far beyond immediate recovery efforts. This includes adopting eco-friendly building materials, promoting renewable energy sources, and fostering green infrastructure that not only rebuilds but also fortifies communities against future challenges.

However, the linchpin that holds these two pillars together and propels us towards a more resilient and sustainable future is the new world energy reality. Energy is the lifeblood of modern societies, powering economies, industries, and households alike. The transition from conventional, fossil-fuel-based energy sources to cleaner and more sustainable alternatives is paramount to addressing global challenges, such as climate change and resource depletion.

The new world energy reality envisions a landscape where renewable energy sources, such as solar, wind, and hydropower, play a central role in meeting our energy needs. This paradigm shift is not only environmentally responsible but also economically advantageous, creating jobs and fostering innovation in the renewable energy sector. Moreover, energy efficiency and conservation strategies are essential components of this new reality, reducing waste and promoting responsible energy consumption.

In conclusion, the intricate interplay between reconstruction, sustainable development, and the new world energy reality offers a blueprint for a more resilient, equitable, and sustainable future. By aligning these three pillars, we can not only recover from crises but also build a world that thrives in harmony with our planet's finite resources. As global citizens, it is our collective responsibility to embrace this transformative journey, ensuring a brighter and more sustainable future for generations to come.

The Reconstruction and Sustainable Development of the Nation, in addition to addressing aspects related to the consequences of

·    three lost decades since 1992-1993 with the stoppage of the development programme designed and undertaken by Dr Miguel Rodríguez in 1989, with the excellent results obtained
·      the fracture of democracy with which the scene was set for the subsequent loss of the Republic in the late 1990s
·       the process of destruction of the productive apparatus and services, as well as the platform of all basic services for the maintenance of the standard of living of the population,

It will necessarily have to consider the new world energy reality, especially in our case, due to the loss of importance that oil has experienced.

For some time now, the boom and expectations about the future use of oil as a fuel have declined, mainly due to the problem derived from the generation of carbon dioxide emissions, one of the main sources of atmospheric pollution that contributes to increasing the greenhouse effect.

Currently, the burning of oil is responsible for 30% of the carbon dioxide emissions in the air. In short: we are in a period of transition, and the decline of the oil and gas sector is at stake politically.

These decarbonization policies that affect our traditional largest source of income, the hydrocarbon industry, make proper attention to the Guayana Region even more imperative as it has enormous potential to support the National Economy, especially its Aluminum Industry.

Paradoxically, these global measures that affect the hydrocarbon industry and fossil fuels in general, favorably impact the aluminium industry supported by clean energy, as our case in Venezuela.

Guayana is current evidence that it should once again be a Development Pole, and reinvigorate the electrification, iron and steel, aluminium, wood, buffalo, fish farming programmes, among other productive and service sectors.

DECARBONIZATION AND CLEAN ENERGIES IN THE WORLD

In its history, humanity has experienced various energy transitions during its evolution, basically through wood, coal, oil, natural gas, which have been driven mainly by aspects related to competitiveness, without any provision for selection. fuel due consideration of the magnitude of its environmental impact.

Currently in all countries, facing the global climate crisis, there is a substantial shift towards renewable energy sources as an environmentally sustainable alternative for power generation.

In order to reduce CO₂ emissions and limit the rise in global temperatures, decarbonizing the energy system involves replacing the fossil fuel energy sources currently used – coal, oil and natural gas – with energy sources that emit a lot. less carbon dioxide as are wind and solar energy. Hydrogen as an alternative fuel can be stored in a gaseous or liquid state and distributed through gas pipelines, and can be a substitute for natural gas, and it does not emit greenhouse gases during its combustion.

Carbon energy use can also be reduced through the large-scale use of electric vehicles in conjunction with "cleaner" technologies. Decreasing carbon intensity in the energy and transportation sectors will help meet emission reduction targets in accordance with government standards.

Phasing out carbon dioxide emissions from fossil fuel use is a critical aspect of managing the global greenhouse gas problem.

Figure 19. Energy-Related Carbon Dioxide Emissions Around the World

The transportation sector accounts for about 14 percent of global greenhouse gas emissions, and this figure continues to rise.

Figure 20. Global carbon dioxide emissions by sector

This energy transition is essential to mitigate climate change, protect human health and revitalize the economy.

GLOBAL ENERGY TRANSITION

Electric technologies as a key to decarbonization

The development of renewable energies is creating a new space for innovative technologies that allow heating and processing products only through electricity. These technologies are helping decarbonization by offering the same results with a fossil- and emission-free process.

Unlike fossil-based systems, electricity-based solutions can be independent of fluctuating gas and coal prices, and with the rapidly declining cost of renewable energy sources, this approach becomes a viable strategy. increasingly competitive for decarbonization.

As a result, global companies are reviewing their sustainability strategies to move away from fossil fuel consumption and seek solutions to electrify their processes.

Natural gas substitution

The thermochemical conversion of biomass and waste results not only in the production of biochar, but also in caloric synthesis gas that can be used as an energy source. This is the reason why in many cases the production of solid products is carried out directly on the industrial site, which allows the energy by-product to be used to produce heat, steam, or industrial energy. Thanks to this advantage, operators can reduce their carbon footprint by replacing traditionally used gas fuels.

CLEAN ENERGIES IN THE WORLD

According to a report published by the International Energy Agency

https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Mar/IRENA_RE_Capacity_Statistics_2020.pdf,

the most advanced nations in this field are China, United States, Brazil, India and Germany.

However, this does not mean that they are the most sustainable. For example, in the case of India, only 35% of the energy they obtain comes from inexhaustible sources. Different is the case of countries such as Norway, Uruguay, Costa Rica and Iceland, which generate practically 100% of electricity in a sustainable way.

CLEAN ENERGIES IN NORWAY

Since the late 1800s, Norway has generated most of its electricity from environmentally friendly hydropower. The same thing happens today. More than 99% of electricity production in mainland Norway comes from 31 GW hydropower plants (86 TWh reservoir capacity, storing water from summer to winter). The average hydroelectric power is 133 TWh/year.

Although hydroelectric power is dominant in Norway, the planning of production processes and services is not only focused on their immediate basic needs, but also on making the most of all the opportunities, potentialities and possibilities offered by their country, and on the innovative capacity of its people, in this case, to develop other renewable energies, and the technology to make them work at their optimum level. Norwegian companies are pioneering technologies in other areas: solar energy, marine energy, bioenergy production from wood, and energy storage.

Renewable energy flows through Norway

https://www.theexplorer.no/stories/energy/renewable-energy-flows-through-norway/

Onshore wind and floating offshore wind

Onshore wind power is one of the most important renewable technologies in the world. Although wind energy production comprises only a small segment of Norway's renewable energy production, progress has been made rapidly.

After nearly five years of construction, Fosen Vind, Europe's largest onshore wind power facility, came online in 2021. Currently, two hundred and seventy wind turbines generate enough electricity to power all industrial production in Trøndelag county, one of Norway's main industrial regions.

Floating solar power

Although solar energy is clean and almost inexhaustible, building solar farms requires vast areas of land. This makes it difficult to build solar power plants near cities, where space is often in short supply. Generating solar energy in the water can be the solution to this problem.

In addition, Norwegian and other energy companies building hydroelectric power plants around the world can increase their output by using hydroelectric power reservoirs to generate power with floating solar power. These companies have the advantage of already having a transmission infrastructure in place.

Hydro will invest around BRL 1 million (€156,000) in research with the Federal University of Pará (UFPA) in Brazil on floating solar panels at the Paragominas bauxite mine.

https://www.hydro.com/en-BR/about-hydro/stories-by-hydro/hydro-and-university-will-study-floating-solar-power-in-brazil/?ite=154151&ito=240&itq=58e5abb4-0994-41fe-bf4e-9901eb615f99&itx%5Bidio%5D=36929

Figure 21. Floating Solar Power

GREEN HYDROGEN

This technology is based on the generation of hydrogen through an electrochemical process known as electrolysis. This method uses electric current to separate the hydrogen from the oxygen in the water, so if that electricity is obtained from renewable sources, we will produce energy without emitting carbon dioxide into the atmosphere.

In Norway, as part of Hydro's strategic direction to strengthen its position in low-carbon aluminum and explore new growth opportunities within new energy sources, a green hydrogen company was established earlier this year 2021 that will enable the change from gas to hydrogen based on renewable energies in several of Hydro's aluminum complexes, in addition to developing and serving the foreign market.

https://www.hydro.com/en-NO/media/news/2021/hydro-names-its-green-hydrogen-company-hydro-havrand/

URUGUAY: LEADER IN THE USE OF RENEWABLE SOURCES IN LATIN AMERICA

https://www.caf.com/es/actualidad/noticias/2021/07/uruguay-lider-en-el-uso-de-fuentes-renovables-en-america-latina/

Uruguay has had a structural and cultural change since 2007 by betting on energy generation from renewable sources. This modification contributes to the environment and provides economic benefits and greater well-being to citizens.

Due to its peneplain landscape and hundreds of miles of oceanic and fluvial coastline, Uruguay has an ideal location for the generation of solar, wind and hydraulic energy, and in the last decade it has positioned itself as one of the countries with the best energy transition towards renewable sources, both in the region and in the world.

In April 2021, the country was, for the second consecutive year, the best positioned Latin American nation in the global index prepared by the World Economic Forum and the consultancy firm Accenture. At the end of 2019, the International Energy Agency (IEA) rated Uruguay as leader in Latin America in energy production and fourth in the world in terms of levels of electricity generation with wind and solar sources.

Wind, solar and biomass energy began to play a highly relevant role in Uruguay and in 2019 they reached high shares in the total offered. According to the balance of the National Administration of Electric Power Plants and Transmissions (UTE), 55.6% corresponded to hydraulic energy, 33.6% to wind power, 6% to biomass, 2.8% to photovoltaic energy and 2% to thermal. In 2005, neither wind nor solar energy contributed to production.

Renewable energies represented 98% of the total energy matrix in 2019, while in 2005 they were 37%, according to the 2019 Energy Balance of the National Directorate of Energy of the Ministry of Industry, Energy and Mining.

In relation to international exchanges, it is highlighted that commercial exports during that year to Brazil totaled 600 GWh and to Argentina 2,391 GWh. In addition, assistance was provided with electricity to Argentina and Brazil in emergency situations in these countries, as established in its 2019 Annual Report.

The combination of its privileged natural resources, legislation with a vision of the future and significant investment in infrastructure is the basis for the change in the Uruguayan energy matrix.

Uruguay develops a policy of freedom of energy generation, which has encouraged significant investments from the private sector, and annually invests around 3% of the Gross Domestic Product (GDP) in energy infrastructure. The report "Renewables Global Status Report" prepared by REN 21, placed the country in fifth place in the world in terms of investments in renewable energy as a percentage of GDP.

With an electrical network of 83,277 kilometers that includes low-voltage and home distribution lines, Uruguay has an electrification rate that covered 99.8% of households at the end of 2020.

In less than 8 years, the same amount of wind power installed as the pre-existing hydroelectric power was developed, but sustainable biomass generation plants and photovoltaic solar plants were also installed.

THE NEW ENERGY MATRIX OF CHILE

Figure 22. Cerro Dominador is a clear example of how technology is advancing, being the first solar thermal plant from Latin America

https://www.latercera.com/laboratoriodecontenidos/noticia/la-nueva-matriz-energetica-que-mueve-a-chile/5TWYWJAWFND25PWO6TIK2NI7XI/

The share of renewable energies in Chile during January and February 2021 reached 25.8 percent. 23,516 MW of installed power total renewable energy projects between solar, wind, biomass, geothermal, marine, hydraulic energy.

The consolidation of clean energies

In the last ten years, the development of clean energies has been significant in Chile, going from 540 MW of installed capacity of non-conventional renewables in 2011, to 6,113 MW at the end of 2020 in the National Electric System.

Already in 2020, the installed capacity of photovoltaic solar plants and wind farms exceeded that of coal-fired thermoelectric plants. And although solar energy is the one with the highest installed capacity, in July 2021, wind power was the one that injected the most energy into the Chilean network.

There are solar, wind, and hydroelectric projects, allowing greater decentralization, greater regional development, generating new job opportunities, and in areas that used to be agricultural or forestry, there is now a third industry: the renewable industry.

Chile is today a country rich in energy. But not in oil, or coal, or natural gas, but in clean energy.

During the second week of May 2021, Chile approved the first green hydrogen project (H2V) with the installation of a fuel production plant based on this resource that would begin construction in 2022.

PLANNING OF THE ALUMINIUM SECTOR IN VENEZUELA

ALUMINIUM: IMPORTANT DEVELOPMENT ENGINE AND ONE OF THE BEST OPTIONS TO ACCOMPANY OIL IN THE RECOVERY OF THE VENEZUELAN ECONOMY, AND THE GENERATION OF WEALTH AND WELL-BEING

BRIEF HISTORY OF DR JESUS IMERY

Dr Jesús Imery was Research and Development Manager of the Venezuelan Aluminium Industry, CVG Venalum, President of Bauxilum, a Bauxite and Alumina producing company, and President of the Aluminium Technological Innovation Centre, CINTAL. Together with an important group of specialists from Venalum R&D Centre and CINTAL, he has worked tirelessly for more than 30 years in defense of the potential of aluminium as one of the most important options to accompany oil in the support of the Venezuelan economy, and the generation of wealth and well-being.

Additionally, Dr Jesús Imery, as a Specialist and Advisor to the aluminium industry internationally, advances in very important initiatives for the recovery, growth, and diversification of the Aluminium Sector in Venezuela, as well as in plans for countries in the region, which, having hydroelectric energy available, they advance projects for the construction of aluminium reduction plants.

Given that aluminium, DEVELOPMENT ENGINE OF THE VENEZUELAN ECONOMY, being one of the most important options to accompany oil in the recovery of the Venezuelan economy, and the generation of wealth and well-being, and at the same time, the area of greatest specialty and expertise of the group that for more than 30 years worked in the Research and Development Centre of the Venezuelan Aluminium Industry, CVG Venalum, in VENEZUELA: SOME LESSONS FOR RECONSTRUCTION, greater emphasis is placed on this important productive sector.

Venezuela is one of the few countries in the world that meets all the conditions for the integral and profitable production of aluminium, a fact that gives it the greatest strength in terms of opportunities to lead this economic activity worldwide, as well as the fundamental role of support for growth and development, and its influence on the diversification of the economy as a non-oil alternative that generates foreign exchange with a direct impact on the generation of wealth and well-being in the short, medium, and long term.

These advantages of Venezuela to produce aluminium and its potential to positively impact the economy have had to be harnessed when CINTAL, Aluminium Technological Innovation Centre, designed and presented to the National Executive the plans for the growth of the aluminium sector.

The execution of the expansion project that had been approved and started in the Venezuelan Aluminium Industry, CVG Venalum, was paralyzed without official notification in 2006.

The National Aluminium Plan 2003 – 2018, consisted of reaching the production of three million tons of aluminium per year in a period of 15 years, which would generate annual income from aluminium sales in the order of six billion dollars (US$ 6,000 million). Additionally, twenty-five billion dollars (US$ 25,000 million) in accumulated investments for the sector: bauxite, alumina, aluminium.

Both, the projection and the behaviour of demand in aluminium consumption, as well as that of world prices, have been maintained as estimates since 2000, as shown in the graphs.

Figure 23. Demand in the consumption of aluminium

Figure 24. Aluminium prices

THE NATIONAL ALUMINIUM PLAN

The execution of the National Aluminium Plan leads to growth in the following sectors: energy, mining, construction and installation of alumina and aluminium production plants, creation of service companies, development of railways and highways, in addition to everything related to improvements in the community’s standard of living through the generation of 170,000 permanent jobs and 190,000 temporary jobs, with the construction of houses and their access to basic services, education, health.

Since aluminium is added value of energy, the development of the industry implies the efficient use of the country’s energy resources, on the understanding that, in the case of the electricity sector, Venezuela is one of the few countries in the world that has a large potential for the generation of hydroelectric energy, non-polluting, to support the industrial sector and the generation of jobs and well-being.

State strategies similar to those reflected in the National Aluminium Plan have been implemented and are currently being implemented in countries such as: Canada, Norway, Australia, United Arab Emirates, Russia, China, South Africa, Mozambique, among others, receiving their communities the benefits of implementing these strategies.

This is how countries with very high standards of living, such as Norway, Australia, Canada, and Iceland, among others, have a flourishing aluminium industry, and in some cases, such as Australia, enjoy all the elements of the productive chain for the production of aluminium.

Arab countries, members of OPEC such as Venezuela, have also used the advantages associated with having electricity at a very low cost, to break into the aluminium business very aggressively. Among them we can mention Bahrain, Dubai and Saudi Arabia.

THE GULF ALUMINIUM INDUSTRY: A LEGACY OF 5 SUCCESSFUL DECADES, 6 ALUMINIUM SMELTERS

https://www.alcircle.com/news/the-gulf-aluminium-industry-a-legacy-of-5-successful-decades-6-aluminium-smelters-68897

Still, countries with political situations of very high risk, as is the case of Mozambique, have undertaken installation and expansion plans for aluminium industries, and in less than 10 years of operations they almost exceed the installed production capacity of Venezuela.

HOW IS ALUMINIUM OBTAINED?

The following are the processes that lead to obtaining aluminium:

Mining, with the extraction of bauxite

Refining, which consists of obtaining alumina or aluminium oxide from bauxite, separating it from other oxides such as iron oxide, silicon oxide and others in very small proportions, through the Bayer Process

Obtaining aluminium from alumina through the Hall-Héroult reduction process in electrolytic cells, where oxygen is separated from aluminium

Figure 25. Aluminium Productive Chain

The country has several bauxite deposits, and studies conducted to quantify them indicate inferred amounts on the order of over 2,500 million metric tons.

The information also indicates volumes on the order of 1,780 million metric tons in Cedeño Municipality and 475 million metric tons in Padre Chien Municipality, both located in the Bolívar State (Guayana Region), where Venezuelan industries of bauxite, alumina, and aluminum are currently in operation.

All of these reserves are greater than what is currently being exploited in Los Pijiguaos mine, ensuring a long life for the integrated aluminium industry in Venezuela. This also enables the creation of new population centers with sustainable economies based on the aluminum industry.

The average sale price of bauxite is approximately 25 dollars per ton and receives a significant added value of 330% when it is transformed into alumina. The LME price (marker of the supply and demand of the sector) for the negotiation of the national alumina is around 13% of the value of the price of one ton of aluminium, therefore, if we consider a reference price of 2,000 dollars per ton of aluminium, then the selling price per ton of alumina is $260, resulting in a 300% alumina-to-aluminium added value.

The added value chain must be considered in its entirety, that is, we must calculate the added value from bauxite to aluminium, which leads to an added value of the order of 1,690%, a fairly high value and highly competitive when compared to any productive sector.

Figure 26. ADDING VALUE FROM BAUXITE TO ALUMINIUM

Electric energy to obtain aluminium exceeds 20% of production costs, clearly an important added value for our energy thanks to its incorporation in the aluminium production process.

Now, since Venezuela has its own bauxite, gas, electricity and other conditions for a flourishing integrated aluminium industry, there is no doubt about its high potential to accompany the oil industry in supporting the national economy.

To this added value of the transformation of bauxite into alumina, we must mention that significant amounts of caustic soda and lime are used in the refining of bauxite, inputs that can be produced nationally, generating additional jobs. Likewise, significant amounts of natural gas and electricity are consumed in the process. Again, to this added value, we must add that, in the process of transforming alumina into aluminium, large amounts of coke and petroleum pitch are used, which can be manufactured by our national oil industry.

Aluminium can not only help the economic growth of the country, but also contribute to better land use, and a better distribution of the population, since this activity has the potential to create new centres of population concentration similar to the cases of Australia and Canada.

EXAMPLES OF THE IMPORTANCE GIVEN BY OTHER COUNTRIES TO THE ALUMINIUM INDUSTRY TO SUPPORT THEIR ECONOMIES

Figure 27. Leading countries in aluminium production worldwide

NORWAY

Norsk Hydro ASA, a Global and Integrated Energy and Aluminium Company with 36,000 employees in 40 countries, is the world’s fourth largest company in the integrated aluminium sector. The Norwegian government owns 43.8 percent of the company.

Norsk Hydro is a major producer of hydroelectric power. Norway is the largest producer of hydroelectric power in Europe and the sixth largest in the world. Hydraulic production can vary 60 TWh between years, depending on the amount of precipitation, and the undeveloped hydroelectric potential is approximately 34 TWh.

PLANT IMPROVEMENTS AND CONSTRUCTION OF THE V-LINE AT CVG VENALUM

The V-Line construction project and installation of all HAL-230 Hydro Technology cells were completed in early 1990s.

In the same way, Hydro Aluminium carried out the project to modernize the cells of complexes I and II with the following improvements:

installation of the busbar system for magnetic compensation of the cells
alumina point feeding system
aluminium fluoride feeding system
automated cell control system
cell information and supervision system
improvements were also made to the auxiliary systems: cranes, material handling systems, gas treatment system for environmental protection

Starting from an annual production capacity of 280,000 tons, original P-19 Reynolds Technology Cells, with the improvements in the complexes, and the start-up of the V-Line, CVG Venalum reaches a production of 430,000 tons/year.

With the new line of cells, the V-Line, and with the cell’s modernization in the Complexes, the reduction area of CVG Venalum was updated to the level of the state of the art in reduction technology worldwide. The company was then prepared to reap the fruits of that investment since that decade. This technology, today, in the year 2022, is efficient, productive and above all profitable, not being far from the state of the art.

Additionally, improvements were made that should accompany the reduction process: in the carbon plant to introduce improvements in the quality of the anode, and in the cast house: furnaces, casting tables for the manufacture of cylinders for extrusion, among other improvements.

Norway has the Norwegian University of Science and Technology, NTNU, in Trondheim, for education, training, specialization, and the technological support it provides to all productive and service sectors. Especially, for the areas: oil, gas, clean energies; hydroelectric, wind, solar. In the same way, for the support of the aluminium industry with the Specialization in Aluminium Reduction Technology and Carbon Technology for the manufacture of Anodes and Cathodes.

Professor Harald Øye, has had a major educational impact on the international aluminium industry by establishing Trondheim’s annual event «The International Course on Process Metallurgy of Aluminium» since 1982.

Much of his later scientific work is contained in the monograph «Cathodes in the Aluminium Industry» together with Morten Sorlie, 2010 English edition, 2013 Russian edition, and 2015 Chinese edition.

In 1997 he received this year’s Outstanding Research Award from the Norwegian Research Council. Professor Harald Øye was made a Knight First Class of the Royal Norwegian Order of Saint Olav for Technical Research conferred by King Harald V of Norway in 1999.

As a Plan for training and assimilating the technologies to be incorporated in CVG Venalum’s modernization and V-Line projects, a significant number of workers attended both, the annual event «The International Course on Process Metallurgy of Aluminium» at the University of Trondheim, as well as the training programs given by Hydro in the areas of Aluminium Reduction Technology, and Carbon Technology for the manufacture of anodes and cathodes that took place at Årdal plant facilities.

Figure 28. Årdal Aluminium Reduction Plant, Norway. Photo: Hydro

https://www.hydro.com/es-AR/

AUSTRALIA

Australia produces massive amounts of alumina, of which it exports a high percentage, understanding in this way that it is important to make the most of the potential that possesses, while simultaneously developing higher levels of transformation, but without condemning thousands of citizens to temporary misery, who in Australia currently enjoy a high standard of living, thanks to the notable exports of alumina.

From the analysis of the Australian case and when compared to the Venezuelan, there is no doubt that Australian society makes the most of its potential to produce aluminium to generate significant benefits for its society, a situation that to date has not been harnessed by our country.

But the difference in benefits that Australia obtains for having developed its aluminium industry more seriously than Venezuela is not only economic, since Australians have installed alumina refineries and aluminium reduction plants in different regions of their country. Thus, aluminium in Australia has helped to make better use of the territory, a condition that must soon be addressed by Venezuela through the development of the proposed projects.

CANADA

Although Canada does not have bauxite reserves, and must import both, bauxite and alumina, its aluminium production has been greater than ours with the benefits associated with that difference.

From the analysis of the Canadian case, and when compared with the Venezuelan, the first thing that stands out is that Canada, although it does not have all the comparative advantages to produce aluminium that Venezuela has, it is indisputable that Canadian society makes the most of its potential to produce aluminium. Thus, it adds important income, jobs and well-being to its community, which helps it to be one of the most stable and rich economies on the planet, while enjoying a notable distribution of social benefits when compared to the large economic powers of the western world.

Analogous to the Australian case, Canada has put forward important expansion plans for its aluminium sector, which of course, and as has been discussed, does not mean under any circumstances that no processing industries are established, but quite rightly, take advantage of the maximum any possible opportunity to generate well-being for their communities, without considering some nodes of the aluminium production network as unprofitable, or not worth exploiting.

This strategy, as in the Australian case, quickly allows the creation of important jobs in the upstream chain of the aluminium sector, while guaranteeing the metal at very enviable and attractive conditions, an excellent condition and incentive for the progressive establishment of a greater transformation park.

Of course, all growth predictions worldwide are often subject to the opportunities taken or left by the different actors, in this sense, Venezuela has lost valuable time that has been taken by its competitors.

Figure 29. Quality of life in Canada

BAHRAIN

This is an oil-producing country that has wisely used that potential to diversify its economy by incorporating a very important aluminium industry. For this purpose, they use gas for the production of energy, which is used for the electrolysis of aluminium.

It is important to note that Bahrain does not have bauxite reserves, a disadvantage when compared to countries like ours for the competitive production of aluminium, however, its production reaches 1,500,000 tons of aluminium per year.

UNITED ARAB EMIRATES

Perhaps the best example of an oil-producing country that has known how to sow its oil is the United Arab Emirates, a reality that is reflected in values such as a very low unemployment rate of 2.4%, and a GDP per capita that is the fourth best in the world.

Figure 30. Sowing the oil in aluminium

The most remarkable is that they, like us in Venezuela, have developed their own aluminium reduction technology, since they understood the enormous potential that aluminium offers to diversify their economy and benefit their inhabitants.

Furthermore, they have proudly built several production lines using their own technology, and this traditionally oil-producing country advanced a National Plan that raised aluminium production to 2,600,000 tons per year.

This line of proceeding in the United Arab Emirates has been supported by its government, who join efforts with their technicians to turn aluminium into a world-class company in the United Arab Emirates, for which they support the development of their own technologies and their massive scale, which they understand as the only way to Productive Sovereignty. Plans similar to those iniciated in Venezuela from the 1990s to 2005.

Figure 31. THE IMPACT OF THE ALUMINIUM SECTOR ON THE UAE ECONOMY

https://www.oxfordeconomics.com/resource/the-impact-of-the-aluminium-sector-on-the-uae-economy/#:~:text=Production%20of%20aluminium%20and%20of,billion%20contribution%20to%20UAE%20GDP.

https://www.ega.ae/en/impact/driving-sustainable-economic-growth

CONCLUSIONS REGARDING THE PLANNING OF THE ALUMINIUM SECTOR IN VENEZUELA

From all what has been mentioned about the aluminium sector in Venezuela, it can be concluded that:

Venezuela is one of the few countries worldwide that meets all the conditions for the integral and profitable production of aluminum.

Taking as calculation basis a price per ton of aluminium of $2,000/t, the process of transforming bauxite into aluminium leads to a value addition of around 1,690%, a high and competitive value when compared to any productive sector.

In the following graph, a trend in the international price of aluminium that exceeds $3,000/t during the current year 2022 can be observed.

Figure 32. International price of aluminium, Year 2022

A production of three million tons of aluminium per year to be achieved in a period of 15 years would generate annual sales revenues in the order of six billion dollars (US $ 6,000 million). Additionally, twenty-five billion (US $ 25,000 million) in accumulated investments for the sector: bauxite, alumina, aluminium.

The National Aluminium Plan leads to a generation of 170,000 permanent jobs and 190,000 temporary jobs.

State strategies similar to those reflected in the National Aluminium Plan have been implemented and are currently being implemented in countries such as: Canada, Norway, Australia, United Arab Emirates, Russia, China, South Africa, Mozambique, with their communities receiving the benefits of the implementation of these strategies.

Given that Venezuela, being one of the few countries that, having all the resources available to develop a world-leading industry, does not take advantage of these benefits, and that currently maintains very low levels of its installed capacity in operation, Colombia prepares its corresponding plans for the development of the aluminium industry aimed at meeting regional demand.

Aluminium can not only help economic growth but also better land use, since this activity has the potential to create new centres of population concentration, as in the cases of Australia and Canada.

The United Arab Emirates have known how to sow their oil, developing not only their capacity to produce aluminium using their energy resources, but also through an aggressive plan for technological independence, which has led them to be a designer country of their own reduction technology, with which they undertake their expansion plans, taking the destiny of their country in their hands.

In the eighties, the President of the Venezuelan Corporation of Guayana, Engineer Leopoldo Sucre Figarella, announced a plan to increase the production of the aluminium sector to 2 million tons per year with the participation of international private investment.

If our aluminium industry had not suffered the lethargy in which it has been immersed in the last thirty years, Venezuela would today have another pillar of the economy, which would give the nation greater slack in the strategic management of its oil industry.
The events that took place during the 1990s and hindered the development programme designed and implemented by the Minister of State, Head of CORDIPLAN, Dr Miguel Rodríguez, unfortunately, prevented this plan from being undertaken.

The abandonment suffered by our aluminum industry starting in 1993, coupled with the policy of destruction implemented during the beginning of this 21st century, and the paralysis of growth plans, have condemned thousands of Venezuelans to misery.

· The year 1990 served for the successful start-up, commissioning, and performance of the Venezuelan Aluminium Reduction Technology, The V-350 Cell, designed by Venalum engineers, and whose purpose was the design of a CVG Venalum proprietary technology that would serve as a technology for new aluminium projects, both, for Venalum and for projects with international private investment in Venezuela, an initiative that was supported by the Minister of State and President of the Venezuelan Corporation of Guayana, CVG, Engineer Leopoldo Sucre Figarella.

Venezuela has its own bauxite, gas, electricity, as well as its own development and design of aluminium reduction cell technology, The V-350 Cell, which was successfully tested in 1990, 10 years before any other successful design of high amperage cell in the world.

Figure 33. 100% Venezuelan Reduction Technology. The V–350 Cell

The Design and Development of High-amperage Cell Technology for the reduction of aluminium carried out by the Research and Development Group of CVG Venalum, marked a milestone in the history of Science and Technology in Venezuela, and a milestone in aluminium reduction: first design worldwide for the year 1990 to successfully operate at amperage levels greater than 300 kiloamperes.

V-350 was the best high amperage cell technology above 300 kA between 1990 and 2000, before any other successful technology design from any country in the world.

As reported by Dr Alton Taberaux in the Journal of Metals, JOM, 52 (2) (2000), pp. 22-28, by the year 2000, the only cells operating at the maximum amperage level of 320 kiloamps in the aluminium industry worldwide were:

The V-350 Cell, CVG Venalum, Puerto Ordaz, Venezuela, and
The P-320 Cell, Pingguo, China.

“Venalum in Puerto Ordaz, Venezuela, developed five side-by-side V-350 point-fed PB cells, four side risers, with 36 anodes operating at 320 kA on their development line.”

Prebake Cell Technology: A Global Review

https://www.tms.org/pubs/journals/JOM/0002/Tabereaux-0002.html

VIDEO THE V-350 ALUMINIUM REDUCTION CELL

https://www.youtube.com/watch?v=wOn9QU1kVpk

The aluminium sector in Venezuela has high-level human resources to support an efficient aluminium industry for the management and direction of the companies, as well as for the projects that make up the National Aluminium Plan that leads to a flourishing integrated industry, so there are no doubts of its high potential to accompany the oil industry in supporting the national economy.

VENEZUELA HAS HIGH LEVEL HUMAN RESOURCES TO SUPPORT AN EFFICIENT ALUMINIUM INDUSTRY

The technical, operational, and managerial group led Bauxilum in 2005 to the historical production record of 1,950,000 tons of alumina that year. And led Venalum, to produce at its installed capacity of 430,000 tons per year until 2008, when the power supply to the plant was cut off.

Since the 1990s, at CVG Venalum Research and Development Centre, and at CINTAL, the Aluminium Technological Innovation Centre, our group has worked hard to defend the potential of aluminium as one of the best options to accompany oil and other productive and service sectors, as a support for the Venezuelan economy, and the generation of wealth and well-being.

Currently, in contrast to international pressures regarding the use of clean energy in industrial processes, more than 70% of the primary aluminium produced in the world is made using electricity generated by fossil fuels.

Green aluminium is that produced through the use of electrical energy generated by renewable sources. The availability of hydroelectric energy for the production of green aluminium has become very important, due to international pressures and agreements to mitigate climate change, which requires a drastic reduction in the carbon footprint and imposes heavy sanctions on aluminium produced with electricity generated from fossil fuels.

These realities have motivated the large aluminium-consuming companies to seek important supplies of green aluminium, one of the most in need of these actions being the automotive industry, which has increased its consumption of aluminium due to the orientation of its markets towards electric vehicles.

Figure 34. Sales of electric vehicles

Another industry that is rapidly trying to secure supply of green aluminium is packaging, since part of its campaign to replace materials such as plastic, is based precisely on the better performance of aluminium in the fight against climate change.

These needs of the aluminium-using industries, in turn, have forced the primary aluminium producing companies to formulate and implement rapid strategies to ensure, in the short and medium-term, the maximum supply of green aluminium as possible.

Additionally, the possibility of fines and taxes, to be applied to aluminium produced using electricity generated from fossil fuels, is another factor of concern for aluminium producers, especially for projects to expand production capacity or construction of new plants, which must be economically efficient in order to cover the financial burden necessary for the execution of their projects.

New projects in the primary aluminium industry must use clean energy. Venezuela has enough hydroelectric potential for the efficient and competitive production of green aluminium. Additionally, Venezuela also enjoys climatic conditions that favour an extraordinary potential for the generation of wind and solar energy.

Similarly, Venezuela has vast reserves of bauxite for alumina production, making it a strong candidate to be one of the largest integrated producers of green aluminium.

Likewise, from CINTAL, aluminium has been promoted not only as an economic activity, but as an engine of territorial development, and CINTAL designed the Conceptual Engineering of two Aluminium Cities, located respectively in Caicara del Orinoco and El Palmar.

https://www.metalesymetalurgia.com/texto-diario/mostrar/3732169/enero-2007-arrancara-ciudad-aluminio

Given his career and successful experiences as a Researcher, Academician, Head of Industrial Operations, Manager, CEO, and President of large companies, as well as an internationally recognized Specialist and Advisor, Dr Jesus Imery is the high-level specialist to lead very assertively in the areas of Industry, Technology, and Innovation, in the Comprehensive and Harmonic Planning of Venezuela, especially in the Planning of the National Aluminium Sector.

https://www.linkedin.com/pulse/venezuela-green-aluminum-production-dr-jesus-alberto-imery-buiza/

CONCLUDING REMARKS

GENERAL CONCLUSION

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

https://www.fao.org/3/s4862e/s4862e02.htm#1.1%20general%20objectives

THE OBJECTIVES OF NATIONAL PLANNING

General objectives

According to the FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS:

1. THE OBJECTIVES OF NATIONAL PLANNING

1.1 General Objectives

Any national economy is built up of several sectors broadly categorized as, for example, heavy industry, manufacture of goods, production of food, supply of services, tourism, etc. All generate wealth in some form and compete for resources in order to do so.

A National Economic Development Plan will analyse the country's objectives and priorities in relation to all these sectors in response to well-identified national needs. It will propose and justify an overall plan in which the role of individual sectors, including aquaculture as a source of food, can be seen in context.

A well-researched and reasoned policy document is of immense value to a country in the allocation of its scarce resources. It relates the scope and timetable of projects to the resources available and the benefits which will accrue. It enables realistic and achievable decisions to be taken.

The private sector looks for a stable and sympathetic environment in which to invest securely and profitably. A national plan provides the evidence to make positive decisions.

In developing countries, a national plan also meets the need of the international development banks and donor organizations to make loans or to provide technical assistance to selected national projects with a clear understanding of the benefits and assured of the government's own wholehearted commitment. Without them, a project has little meaning or purpose. The national plan also enables these different organizations to avoid wasteful overlap and competition by coordinating their respective programmes.

Finally, the government which sees fundamentally what must be done to secure its country's prosperity can act purposefully to bring it about. It can take strategic decisions which determine the course of events long into the future.

1.2 Aquaculture Sector Objectives

As a component of a National Economic Development Plan, a sector plan for aquaculture development will ensure that the legitimate claim of aquaculture to a share of resources is known and understood.

The priorities which dictate selection of sector targets are best described by the framework of needs which an effective industry helps to satisfy. In aquaculture the principal needs are considered to be four.

(1) Domestic production of food, and nutritional health

All countries give highest priority to national food security to supply basic nutrition and to improve diet. As food is not usually distributed evenly, identification of national needs are often by region or possibly a smaller demographic unit.

The importance of cultured aquatic foods as development targets for domestic consumption is determined to some degree by government policy, but there is always evidence of consumer trends and import statistics to interpret. For example, the high-protein content of fisheries products and medical support for their wide use in health programmes are undeniable benefits repeatedly in evidence.

Low production and distribution costs are prime advantages of nationally produced commodities. These are especially important for cultured aquatic products which are trying to establish a share of an existing and often long-established market. Even if production is not viewed primarily as a source of profit, as is the case in some assistance or social projects, those for whom it is intended must be able to pay.

There may be persuasive strategic arguments for some high-cost indigenous aquaculture production to replace cheap imported products. However, the long-term viability of even this investment depends on the reduction of local costs. The potential to achieve reduced costs must exist and be provided for.

(2) Foreign trade

The existing and forecast balance of trade figures are often used to identify a national need for products which can be exported to earn foreign currency. Typically, for aquaculture, these include the high-value marine products, namely fish and shellfish, and raw or processed marine algae.

As with investments for domestic food production or nutritional improvement, the common denominator in every export-based proposal is that investments not adequately rewarded by conventional profit will struggle to survive.

(3) Commercial profit

The incentive to exploit any accessible resources is to generate corporate profit or, at a lower level, to create income and thereby contribute to an improved standard of living for the producer. This is the most fruitful basis for aquaculture development, even when the resources may be little more than a natural water body or point of water source.

Among the rural poor in developing countries, aquaculture projects which have the profit incentive are a priority. The prospect of profit is self-motivating and attracts ongoing investment for a viable progressive industry.

(4) Job creation

In countries where high levels of long-term unemployment exist, the social implications of sector development may dictate priorities in favour of targets which are labour intensive. At times, some forms of subsidy or investment incentive are necessary, and economic and more appealing targets may have to be sacrificed or postponed as part of the national strategy or plan.

Wherever employment opportunities are limited, the major deprived group is often the less educated and unskilled. These untrained resources impose obvious constraints on the types of aquaculture development which will meet this need. The aquaculture industry, particularly at the level of production, is not labour intensive, although large farms employ significant numbers seasonally for harvest. The post-harvest industries, such as processing and packaging, require higher manning levels.

In summary, having established how aquaculture might meet these four principal needs, the purpose of the sector plan is to secure a favourable environment for investment in the broadest sense - knowledge and effort of all kinds, as well as finance. This will be referred to again, but examples are the designation of land and water zones for aquaculture development, and fiscal legislation which encourages more potential investors.

CONCLUSIONS AND RECOMMENDATIONS REGARDING THE PLANNING OF THE PRODUCTIVE AND SERVICE SECTORS IN VENEZUELA

· With the exceptions of two notable cases:

The Guayana Development Programme, and
The Programme of economic adjustments and Planning for the Sustainable Development of the country, which were designed and implemented by Dr. Miguel Rodríguez, an economist and the Minister of State, Head of CORDIPLAN, between February 2, 1989, and February 24, 1992, during the second government of Carlos Andrés Pérez in Venezuela during the 20th century.

Proper planning for all productive and service sectors in Venezuela was never effectively executed, in contrast to the practices of economically and socially developed countries.

Even the oil sector, which held significant potential, lacked the meticulous methodological design necessary for effective planning.

The Guayana Programme stands as a clear example of Development Planning, demonstrating its exceptional validity, particularly when linked to the hydroelectric potential provided by the Caroní River. This methodological approach should be extended to all sectors, including food, agriculture, livestock, fishing, iron and steel, forest-wood, mining products, and high technology, among others.

Given the success of Dr Miguel Rodríguez's 1989 economic adjustments program, which aimed to refinance the external debt and prevent Venezuela from going bankrupt, it is essential to consider his guidance and leadership in structuring the Economic Recovery and Transition Plan. This program achieved a remarkable 9% year-on-year GDP growth in just three years, making it the only successful experience of its kind in Venezuelan economic history.

Dr Miguel Rodríguez's vision of transforming Venezuela into a major exporter across various sectors should serve as a guiding light for sustainable development planning. It is imperative to introduce policies that foster structural changes within the oil sector and other potential export sectors to replicate the success of countries like Japan, South Korea, and China.

Regrettably, proper planning for the oil sector, including increasing production levels to nearly 10 million barrels per day, was not realized despite Venezuela's substantial oil reserves. This failure exacerbated the country's reliance on oil revenue, detrimentally affecting the living conditions of the most vulnerable segments of the population.

To address these issues comprehensively, it is imperative to follow examples not only from countries like Norway but also from traditional oil-producing nations such as the United Arab Emirates. These nations have based their development not solely on oil and gas but on diversified plans encompassing various productive and service sectors.

Singapore, despite its limited natural resources, serves as a prime example of planned development, showcasing the importance of strategic planning in the absence of abundant natural resources.

In recent times, the prominence of oil as a fuel source has declined due to concerns about carbon dioxide emissions, a major contributor to atmospheric pollution and the greenhouse effect. The energy sector, including companies like BP, Shell, Equinor, Total, and ENI, is increasingly investing in renewables to respond to consumer and investor pressure. Consequently, world demand for oil is diminishing, requiring the oil sector to become more competitive, cost-effective, and eco-friendly. The processing of extra-heavy crude generates higher CO2 emissions, further emphasizing the need for sustainable planning in all sectors.

Venezuela's early adoption of hydroelectric power plants placed it ahead of the curve in the Energy Transition scenario. Efforts have been made to promote aluminium as a viable option to support the Venezuelan economy alongside the oil sector. New projects in the primary aluminium industry must prioritize clean energy sources, leveraging Venezuela's abundant hydroelectric, wind, and solar potential. With vast bauxite reserves, Venezuela has the potential to become a leading producer of green aluminum.

Dr Jesus Imery, with over 30 years of experience in research, academia, industrial operations, management, and leadership roles, is well-suited to spearhead the comprehensive planning of Venezuela's industrial, technological, and innovation sectors, particularly in the National Aluminium Sector. His expertise is invaluable in advancing the country's economic development and well-being.

Irrespective of political affiliations, the continuity of sustainable development projects is vital for the prosperity of economically and socially developed nations. Democratic values must be reinforced in a continuous feedback process to ensure not only the meticulous methodological design but also the successful execution of development plans and an improved standard of living for citizens.

In advanced nations, work is viewed as a dignified activity that elevates the human spirit. Creativity and innovation must be harnessed to counteract Venezuela's historical rentier culture. Norway and the United Arab Emirates serve as prime examples of nations that have successfully transformed their economies, emphasizing the importance of these principles.

ANNEXES

BRIEF HISTORY OF DR MIGUEL RODRIGUEZ

Dr Miguel Rodríguez studied Economics and Engineering simultaneously at Central University of Venezuela, graduating in Economics in 1977, and studying Engineering until the eighth semester. Before concluding the latter, after having applied to the Gran Mariscal de Ayacucho Scholarship Programme created under the first government of Carlos Andrés Pérez, he was awarded the scholarship to study in the United States.

He spent 1 year at Harvard University and 4 years at Yale University, obtaining from them 2 Master’s degrees and a PhD in Economics at Yale University. He had the great privilege, as a scholarship holder of the Gran Mariscal de Ayacucho Scholarship Plan, of being able to study at these two extraordinary universities.

He was a student of eight Nobel Laureates in Economic Sciences in memory of Alfred Nobel, and an assistant to two of them.

His specialty is made up of Macroeconomics, International Economy and Finance, Currency and Banking, and Development Planning.

After completing his PhD at Yale University, Dr Miguel Rodríguez returned to Venezuela in December 1983, and in January 1984, he joined directly to teach as a full professor at the Institute of Higher Administration Studies, IESA, until the year 2005.

He inaugurated the IESA Debates Magazine with a special article on Domingo Cavallo’s Currency Board in Argentina, where he made the exact prediction of the evil that was going to affect our Argentine brothers with that straitjacket. Magazine Number 1, IESA Debates.

In 1984, he published an article in El Diario de Caracas entitled «Myths and realities of Venezuela’s external indebtedness», which caught the attention of former President Carlos Andrés Pérez, who contacted him, this being the first time they met.

In 1987 he returns to Washington as one of the two candidates selected by the Peterson Institute where 300 PhD from the best universities in the world participated: * Dr Soon Cho, the Dean of the Faculty of Economics at the University of Seoul, and Dr Miguel Rodríguez, Professor at the Institute of Advanced Studies in Administration, IESA.

The Peterson Institute for International Economics (PIIE) is an independent, nonprofit, nonpartisan research organization dedicated to strengthening prosperity and human well-being in the global economy through expert analysis and practical policy solutions.

Both remain and share experiences for a year and a half in said institution, which allowed Dr Miguel Rodríguez to assimilate the experiences in the matter of South Korea’s Export Policy: how South Korea grows and focuses on export growth. In the same way, what was happening in terms of Development Planning for the Asian Tigers, in Taiwan, in Singapore, what was already taking shape in China, an important and fundamental aspect for the process that China was beginning to convert an economy governed by a communist party, in name only, in a market economy.

During his stay in the United States, Dr Miguel Rodríguez frequently meets with Carlos Andrés Pérez, who offers him the position of Minister of State, Head of CORDIPLAN, after reaching the presidency for the second time by winning the presidential elections in 1988.

Dr Miguel Rodríguez had already been in contact and held meetings with the highest representatives of the Financial Institutions: World Bank, Inter-American Development Bank, International Monetary Fund, managing to bring Carlos Andrés Pérez together with these high representatives, emerging the idea of converting Venezuela in a diversified country.

The programme of economic adjustments proposed and undertaken that sought to refinance the external debt and prevent the country from going bankrupt had great success in the economic field, by managing to lower inflation and promote growth that reached 9% year-on-year of GDP in just three years.

Venezuela missed the great opportunity to modernize its economy with the reforms proposed in the second government of Carlos Andrés Pérez by the team led by Dr Miguel Rodríguez.

The Venezuelan political sector blocked these reforms and conspired to overthrow the government that advanced them.

In 1991, Dr Miguel Rodríguez introduced the Project for the Creation of the Macroeconomic Stabilization Fund, the Sovereign Fund of Venezuela, to the National Congress, being the first, during the government of Carlos Andrés Pérez, to propose that Systematic Sovereign Stabilization Fund, in the world, even before Norway.

Norway introduced the project to create this fund in Congress and approved it in 1991, and today it has a trillion dollars. Venezuela would have hundreds of billions of dollars in that fund. Venezuela would be a fully developed country today if this Sovereign Fund had been approved. We would have had the most extraordinary, developed, thriving, totally democratic country in Latin America in the last twenty years.

Venezuela plunged into a ravine in 1992-93, from which it has not recovered to this day. Most of those responsible who destroyed the great Development programme designed and implemented by Dr Miguel Rodríguez, today propose themselves as its saviors.

The following are some of the most outstanding aspects of the management of Dr. Miguel Rodríguez as Minister of Planning:

The oil program was accelerated, which was the only one since the time of Pérez Jiménez that in two years increased oil production by 700,000 barrels.

The actions that were implemented from 1989 tending to increase production, generated the inertia of increase that was experienced until 1997, trend that is observed in box.

OIL PRODUCTION IN VENEZUELA, 1950-2012

Dr Miguel Rodríguez introduced the creation of the Macroeconomic Stabilization Fund, the Venezuelan Sovereign Fund, to Congress in 1991, before Norway introduced in Congress, and approved the resources for his fund. “The life of oil is the volatility of prices, that is why we should have a macroeconomic stabilization fund that would become a sovereign fund, not discretionary like the Investment Fund of Venezuela, but a parametric fund that would sterilize price increases at starting from a reasonable price of oil that would inject into the economy the profits derived solely from the increase in oil production”.

The program of economic adjustments proposed and undertaken, which sought to refinance the external debt and prevent the country from going bankrupt, was highly successful economically, by managing to lower inflation and promote growth that reached 9% year-on-year of GDP in just three years, projecting values above 10% for subsequent years.

In this way, the phenomenal crisis of the average debt received from Jaime Lusinchi in his 5 years of government, which was 4,500 million dollars per year, was addressed. The commitment to service the debt was fulfilled with the payment of 6,500 million dollars in letters of credit, in order to restructure the economy for stabilization, and the next step, to immediately carry out the economic development programme that had to be undertaken.

RECADI CEASED FUNCTIONS AND WAS DISSOLVED IN 1989, WHEN THE DIFFERENTIAL EXCHANGE RATE SYSTEM WAS ABOLISHED.

That was the Great Turn, the development planning to turn Venezuela into a producer of 10 million barrels of oil and derivatives per day, and into a great exporter of industrial, mining, tourism, high-tech, and agricultural products. which is what corresponds to an economically and socially developed country.

A solid democracy can be built, consolidated, and sustained on the basis of an assertive long-term development plan. The Venezuelan political sector blocked these reforms and destroyed in 1993, the great development programme designed and initiated by Dr Miguel Rodríguez, after Venezuela achieved the highest level of economic growth in the world, as recognized by the prestigious magazine Fortune.

Headline of El Nacional on the economic growth of Venezuela. Source: Fortune Magazine, November-December 1991

Given our current scenario, and that the programme of economic adjustments proposed and undertaken in 1989 by Dr Miguel Rodríguez, which sought to refinance the external debt and prevent Venezuela from going bankrupt, was highly successful, as it managed to lower inflation and promote growth that reached 9% year-on-year of GDP in just three years, it is essential, as this is the only successful experience of its kind in the history of the Venezuelan economy, the guidance and leadership of Dr Miguel Rodríguez to structure the Economic Recovery and Transition Plan.

The Vision of the Economist, Dr Miguel Rodríguez, of turning Venezuela into a great exporting country of products from different productive and service sectors, should serve as an orientation and guide for the Planning process for Sustainable Development through the introduction of policies that generate the necessary structural change within the oil sector, as well as in other sectors of the economy that could become export sectors.

Significant efforts in this direction, which should have continued, were made in Guayana in order to produce that great structural change that would definitively turn Venezuela into a country with high economic growth, since it had the resources to do what Japan, South Korea, and China had been doing.

The entire Bajo Caroní development programme was accelerated. All resources were injected into Macagua II. Dr Miguel Rodríguez fully assembled the investment programme for the Caruachi Hydroelectric Power Plant. With the Tocoma Hydroelectric Plant, we would already have at least two reduction plants of more than half a million tons per year of aluminium each, accompanying Venalum and Alcasa in full production, as well as the entire aluminium chain that Venezuela installed.

This was the great opportunity to shield once and for all the Sustainable Development of Venezuela, with these two successful and emblematic figures: Dr Miguel Rodríguez, and Eng Leopoldo Sucre Figarella, forming a team to reaffirm and guarantee the validity and continuity of the Guayana Programme, which gave the country great strength on the threshold of the 21st century.

DR MIGUEL RODRIGUEZ, 36 MIN. AUDIO ON ECONOMY, DEVELOPMENT, POLITICS AND HISTORY OF VENEZUELA.

*Dr Soon Cho

Dean of the Faculty of Economics at the University of Seoul

Later in 1988 he was appointed Minister of Planning of South Korea

By Law, the Minister of Planning simultaneously holds the position of Vice Minister of South Korea

Dynamics of Korean Economic Development, The

https://econpapers.repec.org/bookchap/iieppress/25.htm

BRIEF HISTORY OF DR JESUS IMERY

Dr Jesus Imery was born in Río Caribe, Sucre State in 1960. He studied Physics at Universidad de Oriente, Sucre State, in the city of Cumaná.

He was Teacher Trainer in the subjects: Introduction to Electronics, General Physics, Mechanics for Engineers, and Physics Laboratories.

During his graduate thesis work he developed mathematical models to study the electrical properties of aluminium alloys. With the results of his work, on two occasions he represents Universidad de Oriente at the National Convention for the Advancement of Science.

Upon graduating in 1986, he began to work at the Venezuelan Aluminium Industry, CVG Venalum, in the recently created Research and Development Centre, initiating the Conceptual Design of the V-350 Cell and the line of experimental cells.

He then concentrates on the development of mathematical models for calculating current distribution and electromagnetic field in aluminium reduction cells, which are used for the optimized design of the busbar system, construction and successful operation of a Hall Héroult cell for the electrolytic production of aluminium, in a stable way and with an intensity of electric current superior to 300 kA., publishing this work in the Light Metals Conference, United States, in 1989:

J.Imery. Electromagnetic optimization of the V-350 Venalum Cell. Light Metals 1989, p.p. 211-214.

This design leads to the patent that protects the industrial property of the V-350 cells in 1990: Electromagnetic optimization of the electrolytic cell for the reduction of aluminium

Type: Invention

Registration: No: 90-0830. Date: 06/08/1990

Registration: No. 55,077

Dr Jesus Imery also contributes to the design of the lining of the V-350 cells, and during their construction and start-up stage, he plays an important role both in their commissioning and characterization.

The year 1990 served for the successful start-up, commissioning and performance of the Venezuelan Aluminium Reduction Technology, The V-350 Cell, designed by the multidisciplinary team of Venalum engineers, and whose purpose was the design of a proprietary technology to serve as technology for new aluminium projects, both for Venalum and for projects with international private investment in Venezuela, an initiative that was supported by the Minister of State and President of the Venezuelan Corporation of Guayana, CVG, Engineer Leopoldo Sucre Figarella.

Plaque of recognition of the Minister of State President of the Venezuelan Corporation of Guayana Engineer Leopoldo Sucre Figarella on the occasion of the startup of Cell V-350 on June 9, 1990

The knowledge and experience gained during the design, construction, and commissioning of the V-350 cells are likewise reverted to the rest of the company through technical assistance programs, with particular emphasis on the reduction area. The results of the work in the V-350 cells, as well as in technical assistance, have been presented at national and international events of recognized prestige, in order to strengthen the image of CVG Venalum.

Venezuela has its own bauxite, gas, electricity, as well as its own development and design of aluminium reduction cell technology, The V-350 Cell, which was successfully tested in 1990, 10 years before any other design of successful aluminium high amperage cell in the world.

100% Venezuelan Reduction Technology. The V-350 Cell

The Design and Development of High-amperage Cell Technology for the reduction of aluminium, carried out by the Research and Development Centre of CVG Venalum, marked a milestone in the history of Science and Technology in Venezuela, and a milestone worldwide in the area of aluminium reduction: first design in the world for the year 1990 to successfully operate at amperage levels greater than 300 kiloamperes.

V-350 was the best high amperage cell technology above 300 kA between 1990 and 2000, before any other successful technology design from any country in the world.

As reported by Dr. Alton Taberaux in the Journal of Metals, JOM, 52 (2) (2000), pgs. 22-28, by the year 2000, the only cells operating at the maximum amperage of 320 kiloamps in the aluminium industry worldwide were:

The V-350 Cell, CVG Venalum, Puerto Ordaz, Venezuela, and
The P-320 Cell, Pingguo, China.

“Venalum in Puerto Ordaz, Venezuela, developed five side-by-side V-350 point-fed PB cells, four side risers, with 36 anodes operating at 320 kA on their development line”.

Prebake Cell Technology: A Global Review

VIDEO THE V-350 CELL

In 1992, part of the multidisciplinary group of the R&D Centre, through agreements between CVG Venalum, and the National Council for Scientific and Technological Research, CONICIT, for the Training and Specialization of Researchers, takes part in specialization programmes covering master’s and doctoral degrees in the areas of Systems Engineering, Computing, Instrumentation, Electronic Engineering, Mechanical Engineering, Engineering and Materials Science.

These programs were held in England, the United States and Spain. This has been the only agreement of this nature celebrated and implemented between the National Council for Scientific and Technological Research, CONICIT, and the Industry.

In 1992, Dr Jesus Imery was part of the first group of CVG Venalum professionals through this agreement, for the formation of a group of high academic level with previous industrial experience, to complement, increase and consolidate its specialized technical support capacity for the Aluminium Sector, in addition to implementing policies with a multiplier effect of this knowledge and expertise that must be used both for the training of the successor generations, and to reinforce the technical level of company staff.

In 1996 he returned to CVG Venalum after having successfully completed his PhD studies in Engineering and Materials Science at Imperial College, London.

In this second stage of work at CVG Venalum, he resumes his technical assistance activities, but now he is also focused on collaborating in the structuring of a National AluminIum Plan, the promotion of the aluminium industry, and the expansion of installed capacity. This work shows an important advance in 2000 when he coordinates the representation of the Venezuelan Aluminium Sector in our National Pavilion at EXPO 2000 Hannover in Germany, and at the Aluminium 2000 Symposium in Puerto Ordaz.

In both events, the promotion of the country’s potential for the efficient production of aluminium is formally relaunched, thus reversing the smear campaign that had been maintained on this important link in the national economy. Likewise, the new Project of the V Line of CVG Alcasa, based on the use of National Technology, The V-350 Cell, is presented for the first time, also considering important aspects for the recovery of CVG Alcasa.

Those first achievements of the tireless work of rescuing and promoting the image of the Venezuelan Aluminium Sector internationally that Dr Jesus Imery and a group of colleagues advanced, were again strengthened in 2003 through the participations, organized by the Research and Development Centre of CVG Venalum in the Aluminium and Energy Congress in South Africa, and the Congress of the Commodities Research Unit (CRU) in the United States, where the international community of the aluminium business was formally shown the new approach that would be giving to the sector. In 2004 he also participated in the TMS 2004 Congress, in the United States, where the CVG Venalum Expansion Plan, which includes the Sixth and Seventh Lines, was shared with the international community.

Industria Venezolana de Aluminio, C.A., CVG Venalum. In the background, view of the CVG Venalum Expansion Project Design, Lines VI and VII. Photo and Design: CINTAL

Simultaneously with these activities, Dr Jesus Imery works on the conceptual and basic design of the Expansion Plan for CVG Venalum and participates in obtaining the financial resources for its execution, as well as in the definition of the guarantee of the electricity and alumina supply for the stable, profitable, and sustainable operation of these projects.

He also keeps his line of work of technical assistance to the plant, and coordinates the activities related to The V-350 Cell, and the specialized technical assistance that the R&D Centre offers to CVG Venalum in the reduction area.

In 2005, Dr Jesus Imery is called to collaborate with the management of the newly created Ministry of Basic Industries and Mining, beginning his managerial duties as a member of the Board of Directors of CVG Alcasa, where, teaming up with the Director, Dr Juan Guzmán, manage to form a work team that puts all the electrolytic cells of Line III into operation in record time.

Since April 2005, he was in charge of the Presidency of CVG Bauxilum, where he implements a participatory management, having to solve a rarefied labour atmosphere, even counting on the presence of a conflicting statement introduced by the workers’ union in the previous administration of the company.

CVG Bauxilum showed a different reality, having exceeded historical production in 2005, notably recovering the work environment, reporting net profits, as well as ready to promote its expansion project to more than three million tons of alumina per year.

Additionally, the management of CVG Bauxilum overflowed its borders, having promoted at the National Executive level the construction of a caustic soda plant, an input that represents more than 70% of the company’s raw material budget.

Likewise, a strategic alliance was promoted and consolidated with the company Saint-Gobain for the construction in Puerto Ordaz of a plant for the production of proppants, this, an important input used to optimize gas and oil wells, being imported by PDVSA the entire of this product.

Aware of the need to increase the degree of added value to our natural resources, as well as to generate new sustainable economic activities, He promotes the industrial use of granite deposits discovered and studied in areas surrounding the bauxite mine, obtaining approval of the Presidency of the Republic for the allocation of the necessary funds to undertake this project.

Work was carried out jointly with the company CVG Conacal for the construction of a lime plant that would cover the future needs of both CVG Bauxilum and the new steel company that would be built by the Ministry of Basic Industries and Mining.

His work as President of CVG Bauxilum was recognized by the Venezuelan Press Federation, FEVEPRENSA, through the granting in April 2006 of El Sol Dorado Personality of the Year Award, Business Mention.

During November and December 2005, he was appointed as Principal Director of the Rolling Mill company CVG Alunasa, located in Costa Rica, and as President of the first Aluminum Technological Innovation Centre, CINTAL.

As President of CINTAL, Dr Jesus Imery works together with important researchers belonging to the Research and Development Centre of CVG Venalum for the consolidation of this centre, where the priority activities in its creation phase, are the consolidation of expansion projects the economic recovery of companies in the national aluminium sector, and the development of value-added projects for its subsequent promotion, fundraising and implementation.

Likewise, from CINTAL, Dr Jesus Imery promotes aluminium not only as an economic activity, but as a tool of territorial development, and CINTAL designed the Conceptual Engineering of two Aluminium Cities, located respectively in Caicara del Orinoco and El Palmar.

Among the achievements of his performance as an academician, he highlights the fact that many students, of whom he served as an academic or industrial tutor, are today excellent professionals, some of them working not only in Venezuela but also in the United States, Canada and Germany.

As for his contributions as a Researcher, in addition to his high level of results, his special entrepreneurial spirit and ability to guide, motivate and lead multidisciplinary work teams stand out.

Currently, Dr Jesus Imery leads a multidisciplinary group of professionals with high national and international academic level and extensive experience in the development and implementation of technical and managerial solutions in the aluminium industry, with experience in the development of technologies for the aluminium production, such as parts, components, equipment, control, supervision and information systems, plants.

This high-level group has worked for more than three decades within the aluminium industry, also with a high level of success in managerial positions, and positions as members of Boards of Directors of companies for the exploration, extraction, handling and transport of bauxite, production of alumina, reduction of aluminium, rolling, wire drawing and manufacture of electrical conductors.

They have also been professors and lecturers at universities, and tutors in the industry, in the areas of Engineering and Materials Science, Mechanical Engineering, Industrial Automation and Process Control, Information Technology, Control Systems and Supervision of industrial processes, Electrical Engineering and Computing, among other areas.

In addition to academic training, technical and managerial experience in the Aluminium Industry, having studied in countries such as England, Norway, the United States and other European countries, has allowed the group to assimilate the strategies of these countries, in terms of planning of their potentialities to structure government policies that have allowed them to grow importantly in the technological and productive sectors, which support the high standard of living of the inhabitants of these countries.

The reconstruction of Venezuela will require not only the recovery of the existing industrial park by the end of the 20th century, but also the planning of the execution of productive growth projects. To undertake these tasks, Venezuela has the Aluminium Industry as an important ally for such noble goals, as have the Countries of the Cooperation Council for the Arab States of the Gulf, who have seen in this industry a powerful tool for diversification of its economy and the generation of wealth and well-being.

Given his career and successful experiences as a Researcher, Academician, Head of Industrial Operations, Manager, CEO and President of large companies, as well as an internationally recognized Specialist and Advisor, Dr Jesus Imery is the high-level specialist to lead very assertively in the areas of Industry, Technology, and Innovation, for the Comprehensive and Harmonic Planning of Venezuela, especially in the Planning of the National Aluminium Sector.

Wednesday, October 4, 2023