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Pictures and information for Latin America
competing globally:
Disclaimer: These notes below were taken by students
during the conference. Any misrepresentation of facts, omission or error of
interpretation is unintentional. They are intended to encapsulate the
presentations for conference attendees and do not represent the views of MIT
Sloan School of Management.
To download the presentation of this panel, press
here
 CITGO
- Mr. Luis Marin
(MIT Sloan Club Latino & Brazilian Club are specially thankful
for his support as Platinum Sponsor of the Conference)
 | More than 50% of the energetic needs are supplied with Oil and natural
Gas. |
| “Western hemisphere Energy Generation; is a unique opportunity for Latin
America”
In the US, the consumption is going up, but the supply is going down! |
| Meeting the demand is a Western Hemisphere Issue, and there are several
individual problems, for example the Refinery Capacity is now over 90%. |
| The reserves of Crude and Gas give us only a limited number of years of
availability, and when we compare the middle east with Venezuela. |
| Venezuela has the biggest reserve when taking into account the Orinoco
Valley Reserves. This fact together with the development of technologies that
allow the transformation of low grade 10 API oil to up to 30 API, would allow
the Venezuela oil availability to expand the lifetime availability to up to
200 years! |
CITGO, is a oil refining company, which has the following market share in the
U.S. markets
| 11% Gasoline Marketing (4 Place) this is 25% of the East Coast Market! |
| 4% Lubricants |
| 3% In refining Capacity |
| 4% Lubricants |
CITGO is expanding to the Latin American Market, taking into account two main
points.
| The huge Spanish speaking population in the U.S. |
| The growth of Latin America |
CITGO serves 12 countries in Latin America through the “Sandwich operation”
acting from the U.S. and Venezuela
CITGO supports entrepreneurship in the U.S. through their Gas Stations and is
also promoting entrepreneurs in each of the countries that it is working with.
CITGO is placing Locals in the local businesses.
Telefonica Brazil - Dr. Fernando Xavier Ferreira
| AT Kearney’s FDI Confidence Index, grades from 0 to 3.0 the attractiveness
of an investment in a country. In this Index, China gets a 1.97, Mexico 1.63,
above the UK and Germany. Brazil is among the Top Ten. |
| However, there are key factors that need to be complied to ensure that
growth is supported and that the Foreign Investment continues: Macroeconomic
Stability, Good Institutions, Openness and Education. |
| Brazil has been adopting important steps in the last few years. The
country is living a very positive political environment, with a strong
democracy and the most important parties alternating in power. However, the
country is still at a development stage, with complex structural problems and
much more must be done. |
| In 2001 trade in goods was 23% of the GDP compared to China 44% and Korea
above 60%. |
| Brazil can improve it education efforts, which have areas of improvements,
compared with China and India, not to mention the U.S. |
Corporations can certainly contribute in several items of progress, and to be
a relevant player throughout Latin America, and need to develop some specific
key competencies:
1. Local Knowledge
2. Low range commitment
3. Market knowledge
4. Management flexibility
Trade Agreements are extremely important to corporations because they:
Provide Access to new technologies
Improve the capacity of firms
Enlarge markets, allowing economies of scales
| Telefonica believes in the region and its growth. This fact is shown by
the heavy investment done by the company. |
| Telefonica is currently one of the most important investors in the region.
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Mainly by investing in the industry, Telefonica has become a multinational
company in only 20 years. Revenue grew almost 6 times in more than 40 countries
from the 80’s to today.
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Dr. Pablo Boczkowski had a great job moderating a challenging panel
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Mr. Luis Marin - CEO of CITGO and MIT Sloan Alumn
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Mr. Marin discussed the key issue of energy in Latin America
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Mr. Ferreira, CEO of Telefonica Brazil stressed the confidence of his company on the future of the region
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A panel of truly global players, discussing the challenges of our region
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A small token of appreciation from MIT Sloan to all the panelists
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