Venezuela: OPEC’s Dilemma

I feel sorry for the people but as far as the Government I can't say I feel sorry for them.

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Venezuela has decided it needs to pump more oil. It has a simple problem. The nation’s income has cascaded as oil prices have fallen from more than $140 last summer to under $40 now. What it cannot get in price, the South American nation needs to make up in volume.

The viability of the Chavez government may hinge on its ability to keep the cash rolling in to cover the costs of social programs and the building and repair of the nation’s infrastructure.

And as if that wasn't enough here is more to the facts at hand

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U.S. officials are scrambling to assert that the Obama administration hasn't softened U.S. policy toward Venezuela, where President Hugo Chávez recently won a controversial referendum allowing him to run for office as many times as he wants.

Here is part 3 of 7 videos I've posted in the media area


[edit on 25-2-2009 by SLAYER69]

Because of this situation, a lot of Venezuelans are coming to the USA, mostly Florida, some legally, others illegally. There are huge parts of South Florida where you feel like you're in Venezuela, mostly only Spanish spoken.

The real threat, as I see it, is that Chavez is taken as an example that socialism or maybe even some type of communism is possible again in Latin America.
There are several Latin American governments that are following in his footsteps and today I read that Colombia's communist party is gaining terrain for the next elections there.
The red wave is spreading. If it does spread more, it will mean a huge exodus of South Americans entering illegally into the USA, from places as far as Argentina.

I lived in Venezuela for a few years. A virtual paradise on the Caribbean, blessed with natural beauty, running rivers and an abundance of mineral resources.

The general consensus among the educated class today is that Chavez is a thug. A naive understanding of world politics, but someone the poorer classes readily identify with. He enjoys the ego boost that being able to call the shots with the US imparts him as an oil source for them. Palling around with the likes of Iran makes him feel like a big shot.

Hard to say how corrupt he is. Maybe just wrong-headed - but that may be as bad. A real Communism that actually spreads the wealth more equitably may be good for the people. But Chavez is more concerned with being able to push around multinational corporations and American interests than actually committing to a long term plan for the country.

He wants to have the fun of being king, and is already working on making sure he never leaves.

It's really wait and see as to whether he can run Venezuela in a way that benefits anyone other than himself and his cronies.


Mike F

Originally posted by mmiichael
He wants to have the fun of being king, and is already working on making sure he never leaves.

It's really wait and see as to whether he can run Venezuela in a way that benefits anyone other than himself and his cronies.


Mike F

Well we will see if his plans doesnt throw a wrench in OPECs plan. It seems now he isn't that shrewd of a business man if he is going to flood the market with cheap oil it will actually work against him if he needs more money to keep on top of Venezuelan needs.

Well no sooner do I post that I read this.




UPDATE 2-Venezuela says wants new output cut at OPEC

(Adds minister on fiscal accounts, paragraphs 8-13)

CARACAS, Feb 25 (Reuters) - Venezuela expects to propose a new OPEC output cut at the group's next meeting in March in an effort to bolster low oil prices, the country's finance minister, who is a former OPEC president, said Wednesday.