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Is Chavez Taking Too Many Oil Risks?

Posted by Matt in November 30th, 2007

Oil experts say Venezuelan production is slipping and Chávez’s industry policy for the long term is risky. Venezuela, like Mexico and Iran, needs reinvestment and foreign investment to keep its $100 billion industry in prime condition. But with China’s and India’s demand for crude inspiring projections for exponential growth and the U.S.’s determination to remain a slave to oil, the oil industry may well have hit a point when the short term is the long term–every barrel not pumped today will be worth more tomorrow. “The Venezuelans are investing as much as they want to,” says economist Mark Weisbrot, a co-director of the Center for Economic Policy and Research in Washington. “That is, they’re not in a hurry at all to expand production.”

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