Oil Politics in Venezuela

   Chavez is at it again, creatingdeadlines for and making accusations against the large oil companies from the United States and Europe and ultimately just complicating things for himself.  The United States imports roughly 60% of our oil, and over 10% of that comes from Venezuela.  On the other hand, we have been importing over half of the oil produced by Venezuela.   Therefore, shaky politics and the worsening ties between the two countries is only going to hurt other countries if something drastic occurs.  While Chavez claims to be diversifying his relations for other people to buy his oil, the main country to fill the American thirst for oil would be China, who is not ready to take that position for a few more years.  As of now, it could appear that Chavez may have the upper hand in the situation, but until he can create more stability in Venezuela, it doesn’t appear like he is ready to take over all oil production in the country (if that were to be his goal), and squander such a vast natural resource like many of the other oil countries.

http://www.nytimes.com/2007/04/10/business/worldbusiness/10showdown.html?pagewanted=1&_r=1&hp

Another Needle in Bush’s side?

Recently, the United States has created reports claiming that Venezuela has been lacking in its part to fight against the cocaine production in Latin America.  Those in charge of the report claim that prior to Chavez’s government Venezuela was one of the most efficient and cooperative countries in battling the coca eradication in the region.  Now, while there has been much crackdown in Columbia, a lot of production has moved to Venezuela and the US feels like Chavez is not doing enough.  This appears to just be another example of how relations are deteriorating between the United States and Venezuela.  What is more, to contradict American reports, Chavez has also talked with Iran and is in the process of building a remote plane to scour the Columbia border in its part to fight drug trafficking. 

On that note, more advancement has developed between Venezuela and Iran in response to American influence around the world.  The two nations have created a Boeing 747 flight that travels between Tehran and Caracas with one stop in Syria.  Furthermore, Venezuela is strengthening its relationship with the Iran (in spite of the American government) by supporting the Iranian Uranium enrichment program.  How the US responds to these actions will interesting enough, but already the Bush administration seems to be taking some action to stem more anti-US development in the Latin American region.  Bush has set out on a trip to counter rising leftist sentiment that is lowering American popularity in the region.  Of course, it doesn’t help Washington that Hugo Chavez has been somewhat generous in the region; offering aid to several nations (Nicaragua for an example).