With oil and gas prices hitting record highs, Mexico and Venezuela are vying for energy influence.
Banco Centroamericano de Integracion Economica predicts Central America's oil bill this year will be $5 billion. The region's GDP is $80 billion.
Mexico plans to construct a $3.2 billion oil refinery for Central America, which imports virtually all its oil and fuel, but soaring oil prices this year have hurt the region economically. Mexico's Pemex plans to open several gas stations across the region, while stirring up competition in what has been an oligopolistic market.
Venezuela, meanwhile, is also interested in using its vast petroleum resources to increase its influence in the region.
Known for his generous energy deals under the PetroCaribe initiative, President Hugo Chavez recently offered cheap fuel to Nicaragua and to construct the storage tanks needed to handle it.
Under Chavez's scheme, 15 Caribbean nations will participate and the world's fifth-largest oil exporter will pick up 40 percent of the tab for oil supplied when global prices are more than $50 per barrel and will pick up shipping costs and assist with the creating storage facilities.
But Barbados refused Venezuela's offer while Trinidad & Tobago produces and exports its own oil and gas.
Some Nicaraguans are skeptical over Chavez's offer and are asking if they will have to support his anti-U.S. foreign policy in return.
