When it comes to Hugo Chavez and oil, the West has quite the attitude and a host of scathing remarks to aim at him. It was reported today that the Venezuelan oil output has been ‘undermined’ by Chavez, or so says Cambridge Energy Research Associates (CERA). Chavez has cut oil output by 1.2 billion barrels per day according to CERA, enough to “supply 80 percent of U.S. East Coast demand.” Rene Ortiz, a senior associate of CERA said that production has dropped by one third since Chavez has been in power. He also blames replacement of engineers with military personnel who are ill-equipped to manage oil fields for the drop in production. Ortiz added that Chavez has fired U.S. consulting firms that advised on strategies for oil investment, walling off the country from U.S and European investment.
“What is hard to fathom is how he has all of these people advising him with PhDs in economics from American and European universities, and yet he thinks socialism will work,'' said Ortiz.
Estimates vary when it comes to oil production. Outside sources estimate 2.3 million barrels per day while Venezuelan officials cite 3.3 million barrels per day.
Last year Venezuela’s state owned Petroleos de Venezuela SA took control of four oil ventures in the Orinoco Belt region. Rather than lose money, Exxon Mobil and ConocoPhillips abandon their projects in the region. After giving up its position, Exxon Mobil is now demanding $12 billion in compensation.
“At a time when we should be opening trade, resource nationalism closes it. It gives pause to investors, and that slows energy development,” said Mark Albers, a senior vice president for Exxon Mobil.
While the mainstream media, government, and oil companies seem to have nothing but disdain for Mr. Chavez, I can only wonder at his true motives. With oil on its downward slope of production, I can only assume Chavez is doing what any oil producing country would do, protecting itself. Here in the West our oil consumption parallels that of a drug addiction. When the supply starts to dwindle we point fingers and scream for more. After all, it’s only an accident of geography that OUR oil is in their ground. Right?
Peak Oil has been gaining momentum in recent years, and the figures support it. Our leaders do not talk about this growing problem, other than citing a dependency on oil that “weakens our national security.” Well of course it does, assuming your nation no longer produces enough oil to matter and you’re intent on fighting for every last drop of it. The fact that it belongs to someone else hardly seems to register in the minds of Americans and their leaders. Our addiction is too great. For the U.S. a lack of oil can easily spell doomsday for the economy and the end to the “American Dream” of endless consumption.
Of course Chavez got rid of U.S consulting firms. Of course he’s blocked investment from Western interests. Those interests and firms would simply advise him to boost production and pump that black gold as fast as possible. It seems to me Chavez isn’t an idiot. He’s not going to let his country’s energy supply slip through his fingers. When you’re freezing in the middle of winter, you don’t burn all your wood the first night.
Consider the statement he made in September 2005, "Americans must reorder their style of life because this planet cannot sustain our irrational consumption, especially when it comes to oil.”
In a trip to the U.S. he noted that "Out of every 100 cars I saw on the road, 99 had only one person in the car,” adding that "These people were using up fuel. They were polluting the environment. This planet cannot sustain that mode of life."
Chavez has also expressed concern that the U.S. Government has a plan to invade his country, and another to assassinate him in order to gain control of Venezuelan oil.
Sadly, this is more than likely true. In the coming months and years it is very probable that oil will be bitterly fought for in devastating wars, and reserves ‘secured’ for the use of whoever can obtain them. Iraq is the merely the first.
While many in this country criticize Chavez, it is doubtful that they do so for any reason other than his policies on oil. For some reason we believe we are entitled to the resources of another country, and as usual, throw a tantrum when they aren’t spoon fed to us.
There is an extremely bleak future in the works if we continue to bicker and fight over the last remaining reserves of oil. The world must come together to solve its escalating crisis, or face endless wars and possible if not inevitable destruction. No amount of fighting will renew fossil fuels. To fight for them is simply delayed suicide.
The end of oil is here, there’s nothing anyone can do about it. This world needs to grow up, roll up its sleeves and get to work on finding a solution to the imminent crisis.
