Chavez makes US oil export threat

BBC ^

[traumer]

Oil exports to the US could stop amid growing tensions between the two countries, Venezuelan President Hugo Chavez has said.

He described recent US government actions as "aggressive" in a speech at a youth festival in Caracas. As a result, Venezuelan oil "instead of going to the United States, could go elsewhere," he said.

Venezuela exports about 1.3 million barrels a day to the US and is the world's fifth largest oil producer.

Tensions between the two countries have escalated since President Chavez accused the US Drug Enforcement Administration (DEA) of spying on his government.

Washington denies the charge and has accused Caracas of failing to co-operate in the fight against drug-trafficking.

On Friday the Venezuelan government withdrew diplomatic immunity from DEA agents working in the country in response to a US decision to revoke the visas of six Venezuelan officials based in Washington.

Venezuela is an important transport route for cocaine from neighbouring Colombia, which produces 80% of the world's supply.

[thoughtomator]

Then we send back all Mexican citizens - at once.

Check, Presidente. Your move.

[garyhope]

This fruitcake Chavez, really, really NEEDS killing.

[kaktuskid]

Then we seize his Citgo operations under the enemy act!

[atlanta67]

last time oil from Venezuela was shut off for 60 days back in late 2002-03, gas prices in the US rose 20 cents....meanwhile, Venzuela almost ran out of food and medicine.

In 2002 When Iran wanted to impose an oil embargo on the US for supporting Israel, Saudi Arabia rejected the idea.

reason is they need to sell us the oil more than we need to buy it

[atlanta67]

they will starve if that happens

[Tribune7]

Any bets on how high and how fast this will make oil prices go?

I think a more interesting bet would be how long Chavez lasts if he should try it. If Venezuela withholds oil, where will he get the bucks for the welfare he needs to keep his supporters happy?

[Paleo Conservative]

Considering that the great circle distance from Caracas, Venezuela to Hong Kong is just over 10,000 miles, this has to be one of the most stupid ideas, Chavez has ever had. Considering that the great circle passes very close to the north pole, a tanker would traveling from Venezuela would have to travel a much longer route either around South America or Africa. Potentially they could ship oil through a pipeine across Panama, but the US already imports oil across it going the opposite direction.

[Paleo Conservative]

Here's the great circle map.

CCS (10°36'11"N 66°59'26"W) HKG (22°18'32"N 113°54'53"E) 10167 mi

[M. Espinola]

"Why is this guy still walking around?"

Right now it could be stated energy prices don't need another massive price jolt with chaos in OPEC's Venezuela, however less then two years ago when oil had dipped just below $30.00 a barrel was the time to take him and his entire collection of commie government hacks - out.

[Red Boots]

Granted, the owners of oil companies and their owners the insurance companies haven't allowed alternative energy sources to be brought into the market

Yes, the thousand of alternative energy sources that have been invented, that could provide all the energy we need, at below market prices, that we COULD be using, except that the EVIL OIL COMPANIES AND THEIR MASTERS, THE EVIL INSURANCE COMPANIES have been keeping from us, because they're MEAN ??

Do you have any evidence to back up this claim, or did you hear it through your tin foil hat ?

[Mr Ramsbotham]

The oil isn't going away. It'll get sold to someone else, and then sold back to the U.S.

[mtbopfuyn]

Chavez who?

[Kenny500c]

My guess is this rhetoric is already factored into the current price.

Then again he is backed by the Chicoms, who are buying oil hand over fist.

[RJL]

Tensions between the two countries have escalated since President Chavez accused the US Drug Enforcement Administration (DEA) of spying on his government.

Washington denies the charge and has accused Caracas of failing to co-operate in the fight against drug-trafficking.

On Friday the Venezuelan government withdrew diplomatic immunity from DEA agents working in the country in response to a US decision to revoke the visas of six Venezuelan officials based in Washington.

Somehow the BBC forgot to report that Chavez ordered the Venezuelan officials in the US to quit cooperating with the DEA.

It only stands to reason if they aren’t cooperating they have no reason to be here in America and their visas were revoked.

Purposely sloppy reporting by the BBC?

[HereInTheHeartland]

Someone please tell me again why we are not getting the Alaska oil reserves out of the ground?

[americanbychoice2]

from China

[Navy Patriot]

Grand Fenwick's rulers hit upon the idea of declaring war on the U.S., losing

Of course, being unfamiliar with Murphy's law, they made the mistake of winning.

[CyberAnt]

LOL!! "poor thug" .. right on!!

[Tribune7]

From China

If he were to sell oil to China with the intent to exclude it from the U.S. market he would get substainally less revenue than if he were to sell it to the highest bidder on the open market.

Further some other oil producer would then have a surplus due to the loss of market share in China because of the Chavez dicount.

It would be good for China, not so good for Chavez and probably make no diff to us in terms of price.

[Americanexpat]

"We are so screwed."

I am not willing to let this country kiss Chavez's a$$ for his oil.

I think we ought to make his life miserable, support his opposition parties if we are not already and send a fleet of naval vessels into waters off Venezuela to make him even more paranoid. Chavez is a punk, just like Noriega was a punk.