venezuela becomes number 1

cortezzz

Electoral Member
Apr 8, 2006
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from The Independent & The Independent on Sunday


16 April 2006 01:10

Expert View: The joke's on Bush as Chavez strikes it even luckier


Estimated oil reserves have just overtaken those of Saudi Arabia


By Christopher Walker


Published: 16 April 2006


There is nowhere on this earth quite like Caracas. Certainly the business traveller has no shortage of time to admire the physical beauty of its setting - two-hour traffic jams characterise this oil-boom city, where petrol costs a mere tuppence a litre. We'd better get used to it. For Venezuela has just overtaken Saudi Arabia in its estimated oil reserves to become number one in the world. Venezuela is here to stay.


When the reports of the country's latest good fortune came through to New York, a banker turned to me and said: "Surely by now George Bush must realise God is not on his side." Even under the old estimates, Venezuela already had its place as a major oil producer guaranteed for the next 80 years. Now it would appear to stretch into infinity. Together with the Middle East, Caracas will be the major force in world energy markets.


In Venezuela itself, high oil prices are having dramatic effects. The Dallas-like skyline is testament to an economy that grew by an astonishing 18 per cent in 2004 and nearly 10 per cent last year. Oil now accounts for well over 80 per cent of exports and more than 50 per cent of government revenues.


And the important point about these enormous revenues is that they are in the hands of President Hugo Chavez, sworn enemy of President Bush. Chavez's Fifth Republic Movement has a powerful majority in Parliament and he looks set to be re-elected for another six years in the presidential elections later this year.


At home, Chavez is fostering his "21st-century socialism", an interesting blend of state control and capitalism, which sees the state establishing its own companies to outdo the private sector. This is combined with strict controls on prices, bank lending and foreign exchange.


Chavez has delivered tangible benefits to the many millions of peasants who make up the bulk of Venezuela's population. Food handouts and free medicine are the order of the day, ensuring that Chavez's weekly TV show, Hello, Mr President, has mass appeal. It lasted six hours the Sunday I was there.


Abroad, Chavez is a thorn in the side of Bush. He has become a figurehead for all those Latin American countries tired of American arrogance, taking over where Fidel Castro left off in what Chavez calls the "axis of good". Venezuela is using its oil revenues for a variety of social programmes across the continent, spending an estimated $2bn (£1.1bn) in neighbouring countries alone. It has even rubbed George's nose in it by providing the poor of Boston with free winter fuel.


The scope for a US response is limited. While the wilder fanatics in Washington play with military schemes and give encouragement to secessionists in the nest of Venezuela, the reality is they will have to keep their fire well away from this tinder box. For Venezuela is America's number-one oil supplier, providing more than $100m worth each day. That's the joke - it's American money financing all this anti-Americanism.


Venezuela is a unique country, its political system the opposite of Bush's America, and its social dynamic the most intense version of what is going on across the continent today. But the reality of its energy windfall means that Americans and Europeans must get used to it and seek to understand. The wild card is very much part of the pack.


Christopher.walker@ tiscali.co.uk
 

zoofer

Council Member
Dec 31, 2005
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You must be sick in the head to champion communist Venezuela over North Americans Cortezzzzzzzz

Why not move to Cuba or France? You will be happier.
 

cortezzz

Electoral Member
Apr 8, 2006
663
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i didnt write the article

great article though

--chavez has delivered tangible benefits to millions of peasants--- is that what you mean by communism..

im very happy here--
so moving isnt an option for me
the idea is to bring cuba and france and venezuela- HERE!

perhaps it is you who should move
i would suggest

austria
or antartica

increasingly---- your side becomes discredited--- and slowly weakens

do not fear the coming age of global communism--- i mean communism as defined by chavez---helping the poor and destitute---

que viva Venezuela!!!
 

FiveParadox

Governor General
Dec 20, 2005
5,875
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Vancouver, BC
Relation to the U.S.?

I don't quite see how good fortune for His Excellency Hugo Chavez, the President of the Bolivarian Republic of Venezuela, would be some sort of negative thing for the United States of America. If increased revenue for the people of Venezuela would amount to higher-calibre social programs and services, then I would think that this would be a good thing.

In terms of His Excellency the Honourable George Bush, the President of the United States, I don't think that he would be particularly interested in whatever reserves there may happen to be in Venezuela. Perhaps once whatever increased revenue which may be incurred results in better programs for the people of Venezuela, the novelty of having Mr. Chavez head the nation might expire.
 

zoofer

Council Member
Dec 31, 2005
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Internally, Chavez has already rewritten the constitution, stacked the courts and begun throwing political opponents into jail. And some say he is now looking beyond Venezuela's borders. With billions of dollars in oil profits, Chavez is buying advanced Russian fighter planes and helicopters, dramatically increasing the size of his armed forces and integrating it with Cuba's

I imagine all with your ultra leftwing approval Cortez. Did you have these 5th column views when you came to Canada?
The screening process must have been the shits.
 

Toro

Senate Member
Anyone who knows anything about energy markets knows that Venezuela is sitting on vast amounts of heavy crude. I mean, its not like they woke up one day, and BANG!, there's another 300 billion barrels of oil sitting in the ground. Its been there all the time.

Venezuela has the world's largest known deposits of heavy crude. (Heavy refers to the density of the oil). But the Venezuelan heavy crude is expensive to produce and refine at around $40 a barrel, and OPEC has never counted it in the official reserves since oil had never risen above $40 until recently. Allocation of production in OPEC is dependent on official reserves, which is one reason why Venezuela has announced this. Chavez suggested that the official price of oil be "fixed" at $50. (Of course, you cannot fix the price of oil since OPEC accounts for about 30 million barrels of oil per day produced out of 85 MM b/d globally, but you can heavily influence it.) However, by using a $50 benchmark price, OPEC would be acknowledging that Venezuela, not Saudi Arabia, would have the largest deposits in OPEC, and thus be allocated the greatest amount of share. Of course, using Chavez's logic, Canada, not Venezuela, would have the largese deposits in the world. Perhaps the writer missed this little point. But in OPEC, they're all cheaters and liars anyways (and rational economic players) since they all are running at full capacity, regardless of quota.

But it doesn't really matter though, since Venezuela's productive capacity has fallen since Chavez was elected President. Venezuela produces about 2.6 million barrels of oil perday, which is below the official 3.3 MM b/d the government claims. A strike by the national oil company PDVSA which led to the firing of thousands of employees (some of whom have ended up in Alberta), and Chavez's attempt to install cronies in PDVSA at the expense of technical people has lead to production declines at PDVSA. Also, the government has been altering the terms of contract and threatening the multinationals. 16 of the 18 foreign companies operating in Venezuela changed the contracts, but 2 left. Its unlikely that the remaining companies will leave under current conditions but many will be hesitant to invest in new projects when the government arbitrarily changes the rules, and PDVSA doesn't have the ability or the capital to expand production. Heck, it can't maintain production.

Thus, for the time being, the practical reality is that it doesn't matter how much "more" oil Venezuela has.
 

Toro

Senate Member
Re: Relation to the U.S.?

FiveParadox said:
I don't quite see how good fortune for His Excellency Hugo Chavez, the President of the Bolivarian Republic of Venezuela, would be some sort of negative thing for the United States of America. If increased revenue for the people of Venezuela would amount to higher-calibre social programs and services, then I would think that this would be a good thing.

In terms of His Excellency the Honourable George Bush, the President of the United States, I don't think that he would be particularly interested in whatever reserves there may happen to be in Venezuela. Perhaps once whatever increased revenue which may be incurred results in better programs for the people of Venezuela, the novelty of having Mr. Chavez head the nation might expire.

It doesn't, 5Par.

America doesn't care how the revenues are allocated in Venezuela any more than they care how oil revenues are allocated in Canada. What they care about is that the assets of American companies are not expropriated and that Venezuela doesn't use the monies to export revolution and create more Cubas.

Other than that, America doesn't care. America does business with countries like the Gulf states and Brunei, nations that share a large part of their oil wealth.
 

cortezzz

Electoral Member
Apr 8, 2006
663
0
16
zoofer said:
Internally, Chavez has already rewritten the constitution, stacked the courts and begun throwing political opponents into jail. And some say he is now looking beyond Venezuela's borders. With billions of dollars in oil profits, Chavez is buying advanced Russian fighter planes and helicopters, dramatically increasing the size of his armed forces and integrating it with Cuba's

I imagine all with your ultra leftwing approval Cortez. Did you have these 5th column views when you came to Canada?
The screening process must have been the shits.

i have no doubt that i am a better citizen than you

my approval of
the left is approval of mankind
this view-- you say i have
is normal here
you make it sound like
im the outsider
when its people that you who are

your are free to leave
to more closely serve your master
due south of Kunuckistan

i sense your frustration
your anger

it is somewhat justified
for
i see your side failing
falling

you are weakening

que viva chavez
que viva che

PS-- i was born here
 

darkbeaver

the universe is electric
Jan 26, 2006
41,035
201
63
RR1 Distopia 666 Discordia
RE: venezuela becomes num

I see reeducation in Zoofers future, kanucistan demands it.
The stuff Zoofer spreads can be connected legaly with the war crimes he supports, after the revolution we'll have to round up all the corporate war mongers and charge them and sentence them to perpetual community service.
 

Said1

Hubba Hubba
Apr 18, 2005
5,336
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Das Kapital
Be careful not to inflict too much damage upon the corporations. You'll need them to support your new bureaucracy and standing army.
 

cortezzz

Electoral Member
Apr 8, 2006
663
0
16
Hugo -should nationalize the oil companies operating in venezuela---
buy them out for the sum of one american dollar

but not yet

hence the preparation
hence the military build up
hence the the expectation of invasion

righteous!!!!!!!

socialism must be defended

Hugo is our man
 

Sassylassie

House Member
Jan 31, 2006
2,976
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Global Communism, isn't that an oxi-moron? I mean Communism is nothing more than an Elite few controlling Industry and the Unwashed masses, usually via a corrupt Military that enforces the Elite's Agenda. Oh sure they feed you, pay you a small pay check and pay for your education but you are under the "Complete Control" of a few elite ego maniacs. No thanks, I don't think Communism will have any place in politics in North America in the next five hundred years.

Toro good post.
 

Said1

Hubba Hubba
Apr 18, 2005
5,336
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Das Kapital
No one will invade Venezeula or vis versa.

But yes, military build up is important within a state system, that is changing and evolving constantly.
 

Said1

Hubba Hubba
Apr 18, 2005
5,336
66
48
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Das Kapital
Re: RE: venezuela becomes number 1

Toro said:
Said1 said:
No one will invade Venezeula or vis versa.

Well, they might if they follow Cortez's advice.

True.

But, Chavez is trying to implement an outdated system of loyalty to him, instead of the state itself. It might work though, even Peron was welcomed back after he was ousted, so who knows.
 

Sassylassie

House Member
Jan 31, 2006
2,976
7
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Yes Beav, starve them first then feed them and then brain-wash or inforce by Military Brutality complete compliance of body, mind and soul. Wow, I thought the Commie Doctorine died 20 years ago.
 

cortezzz

Electoral Member
Apr 8, 2006
663
0
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Sassylassie said:
Yes Beav, starve them first then feed them and then brain-wash or inforce by Military Brutality complete compliance of body, mind and soul. Wow, I thought the Commie Doctorine died 20 years ago.

the north american fascists-- are really concerned at the prospect of social justice and real democracy breaking out--
so they label this strategy-- communism

the fascists-- are defeated in south america---
we have to now concentrate on defeatinng them here
so that they cant interfere with ---well south america
and anywhere else for that matter

as i see right wing america fail and others begin to stand up
i feel more and more hopefull for the future