Bending the Third Rail
Because We Should, We Can, We Do
Monday, April 03, 2006
Viva Chavez?
This is very interesting.

Venezuelan president Hugo Chávez is poised to launch a bid to transform the global politics of oil by seeking a deal with consumer countries which would lock in a price of $50 a barrel.

A long-term agreement at that price could allow Venezuela to count its huge deposits of heavy crude as part of its official reserves, which Caracas says would give it more oil than Saudi Arabia.

Of course, Chavez is painting a big target on his head. The current American regime will never stand for this, especially since Venezuela just kicked Exxon out of the country.
Written at 7:09 AM by Lynne.
2 comments
2 Comments:
Blogger Greyhair said...
This is more PR by Chavez than reality. The Oil he's discussing are reserves of tar sands. The $50 price is about $20/barrel over the existing price of that quality of crude.

BUT

As prices for light sweet go up, this deal could become increasingly viable and would, indeed, increase the reserves Chavez could claim. Canada is in the same boat.

And of course, none of these options solve the global warming issue .....

But you are absolutely right about Venezula looking more and more attractive .....
9:05 AM  
Blogger Lynne said...
Actually the main reason I like Chavez is his total disregard for bush. He knows an idiot when he sees one.
4:49 AM  
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