Venezuela's president tells world to 'forget about cheap oil'

The New Kerala ^ | March 5, 2005 | Agence Presse-France

[Kitten Festival]

NEW DELHI (AFP) - Venezuelan President Hugo Chavez, whose country is the world's fifth-largest oil exporter, said that the world should get used to high oil prices. "The world should forget about cheap oil ... it won't happen," Chavez told a news conference in the Indian capital on Saturday, saying that the new price range for oil would remain between 40 dollars and 50 dollars.

"That is the new band for oil," said Chavez, whose country is the only South American member of the Organisation of Petroleum Exporting Countries (OPEC).

Chavez, on the second day of a visit to India where he signed a slew of energy and other agreements, said the "world needs a fair price for oil."

"We are evaluating how we can stabilise the price of oil (within the 40 dollar to 50 dollar band)," he said.

He added later, however, he was certain the prices "will go up even further" than the 40 dollar to 50 dollar range, given rising prices of other goods.

[CMOTB]

The more these countries keep upping their prices the more our country needs to start saying up yours to them. Once we start converting our engines to alternate fuels such as hydrogen, methane (and this country has an unlimited supply of methane if they would process human waste to fuel) and of course alcohol, our problems would be over. In the mean time we have so much domestic oil if we could just start drilling with less restriction.

[Kitten Festival]

And what will they do with it? The only refineries that can handle Venezuelan oil right now are in the US, Caribbean and I think one or two in Europe.

[thoughtomator]

Oil prices are going up primarily because of demand. Any individual supplier can embargo the US all it likes, but all that will do is bring down the price of oil; by reducing their own demand, they have to sell cheaper, while we can simply buy at market price from another supplier.

High oil prices will likely hurt the US less than most other countries, except perhaps France. We're more adaptable, and have greater means to adjust. China, on the other hand, is getting screwed by higher prices, and they need the energy desperately.

[cyborg]

It's time to take out the trash IMHO.

[Mad Mammoth]

Hugo needs to absent mindedly step out in front of a bus.

Tomorrow morning would not be too soon.

Hello Porter Goss?

Yes, that's a hint. :)

[John Lenin]

Time to shut these punks down, bring on fuel cells !

[Scenic Sounds]

The more these countries keep upping their prices the more our country needs to start saying up yours to them.

Well, the price of oil for us involves at least two markets - the market for oil and the market for our dollar. Setting aside the factors affecting the supply of and demand for oil, other things being equal, the less valuable the dollar becomes, the more dollars it will take to purchase oil. So, we can do ourselves a favor by doing things which might serve to protect the value of our currency.

Once we start converting our engines to alternate fuels such as hydrogen, methane (and this country has an unlimited supply of methane if they would process human waste to fuel) and of course alcohol, our problems would be over. In the mean time we have so much domestic oil if we could just start drilling with less restriction.

Good point. This country will be a lot better off if we can reduce our dependence on foreign oil. That dependence has caused us many, many headaches. ;-)

[Gritty]

One of these days we'll get sick and tired for letting these turd-world despots hold us hostage for oil and start exploting the oceans of oil we have just sitting untapped in our own country.

But if our native obstructionists have anything to do with it, we won't.

[Finalapproach29er]

"It's not who votes, it's who counts the votes."
- Joseph Stalin

[The Duke]

Higher oil prices should also have a positive affect on communities as, in some cases, it becomes more reasonable to produce items closer to home rather than transport them half way around the world.

As long as we can afford the nonsense of bussing school kids across town all day ever day, oil prices can go higher.

[GeronL]

This dude is really asking for it, ain't he??? He's begging for a bullet.

[BadAndy]

It's time for food prices to start tracking oil prices. The price of oil is not being controlled by demand, but by greed and political concerns. I wonder how well wheat, corn, and livestock grow in sand?

[WestVirginiaRebel]

Hugo has these paranoid fantasies about the US assassinating him. I say Porter Goss should play the role of Mr. Rourke and oblige him. "Welcome to Fantasy Island!" BANG.

[hedgetrimmer]

The US has vast reserves of tar sands and shale oil that can be tapped and developed as alternative sources when the price of crude gets too high.

You'd be right, but you are not considering the enforcement of sustainable development on the US by treaty to the UN.

Nancy Pelosi and Bill Clinton know all about it,they used environmentalists and environmental law to lock up natural resources. The EPA, BLM, Parks Service and other federal agencies are fully on board sustainable development and while the current crop of bureaucrats and politicians still have their jobs, no new oil fields will open in this country.

An example close to me is the Monterey Bay Marine Sanctuary. It was created, illegally I might add because it wrested control of state land and gave it to the federal government improperly, in the early 1990s to stop oil drilling off the coast of central California. It has morphed into one of the most restrictive land and sea use policies in the country. It is killing off whole industries, fishing being one and agriculture the next. It has also created a monster bureaucracy with armed federal agents who are empowered to shoot you if you even so much disturb a cup of sand on the bottom or frighten a flock of birds.

[hedgetrimmer]

We have treaties with the WTO and the UN to support "least developed countries" with trade and infrastructure development. As OPEC countries are considered ldc's we would be violating our free trade agreements. If we did anything to harm their trade or their oil prices,we would be violating thos treaties.

[B Knotts]

http://www.unh.edu/p2/biodiesel/article_alge.html

The operating costs (including power consumption, labor, chemicals, and fixed capital costs (taxes, maintenance, insurance, depreciation, and return on investment) worked out to $12,000 per hectare. That would equate to $46.2 billion per year for all the algae farms, to yield all the oil feedstock necessary for the entire country. Compare that to the $100-150 billion the US spends each year just on purchasing crude oil from foreign countries, with all of that money leaving the US economy.

It's a possibility, anyhow.

[Chode]

this guy should hope he doesn't experience a sudden and extremely rapid increase of lead density in the air around him

[hedgetrimmer]

China, on the other hand, is getting screwed by higher prices, and they need the energy desperately

China has spent the last year going around the world tying up oil contracts, which is a major reason the price is going up. Just look up china oil.

China now largest Saudi oil client
Venezuela and China sign oil deal
China and India wrestling for Iran's oil
China Emerging as U.S. Rival for Canada's Oil
Oil, China Push U.S. Trade Gap Near Record

[JCEccles]

Interesting. I'll have to look into that.

The tar sands and oil shale I was referencing are mostly in fairly desolate areas of Wyoming, Utah, and Colorado.

[hedgetrimmer]

Mr Chavez needs to be reminded that, as a member of the WTO it is not nice to gouge the rest of the world by doubling the price of crude within six months.

I don't think you know how the WTO works. Its core philosophy is the redistribution of wealth from "rich countries" to "poor countries".

Chavez is emboldened by the WTO, and will never be chastised by it.