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2008-02-10 Caribbean-Latin America
Chavez threatens to stop shipping oil to U.S.
CARACAS, Venezuela - President Hugo Chavez on Sunday threatened to cut off oil sales to the United States if Exxon Mobil Corp. wins court judgments to seize billions of dollars in Venezuelan assets.

“If you end up freezing (Venezuelan assets) and it harms us, we’re going to harm you,” Chavez said. “Do you know how? We aren’t going to send oil to the United States. Take note, Mr. Bush, Mr. Danger.”

Exxon Mobil has gone after the assets of state oil company Petroleos de Venezuela SA in U.S., British and Dutch courts as it challenges the nationalization of a multibillion dollar oil project by Chavez’s government.
Just keep thwacking that beehive Oogo...
He'd have to invade Colombia or Guyana to get us off the dime. Which wouldn't be far-fetched ...
Posted by OldSpook 2008-02-10 17:30|| || Front Page|| [11139 views ]  Top

#1 You really think we'll stop you from cutting your own throat?

NO. Go right ahead, your successor may have more brains.
Posted by Redneck Jim 2008-02-10 17:48||   2008-02-10 17:48|| Front Page Top

#2 it doesn't matter that much whether Venezuela ships its oil to the USA assuming it ships it somewhere else.

Oil sells at a discount to the official price. The discount being the cost of shipping the oil to its destination. So Venezuela will get less money for its oil because it will have to be shipped further.

Smart move there, Hugo.
Posted by phil_b 2008-02-10 18:29||   2008-02-10 18:29|| Front Page Top

#3 IIRC, Hugo's oil is heavy high-sulfur tarry crap - not every (or many) refinery can crack it. Good luck Hugo!
Posted by Frank G">Frank G  2008-02-10 19:04||   2008-02-10 19:04|| Front Page Top

#4 And, most of the refineries that can handle it are, uh, here in the US. Smooth move coca chewing monkey boy...
Posted by M. Murcek">M. Murcek  2008-02-10 19:26||   2008-02-10 19:26|| Front Page Top

#5 Nice assessment at Lou Minatti's blog (found via - who else? - Instapundit ).

My favorite part:

"In parallel with this lack of flexibility Venezuela is facing a decline in its international monetary reserves since Chavez keeps raiding them. These monetary reserves only represent some six to seven months of imports at the current level since Venezuela is now importing close to $40 billion per year, mostly in food. Therefore, an interruption of oil income derived from the cut off of oil supplies to the United States would most probably cause the Chavez’s regime to collapse in less than a year as the result of internal protests, no outside intervention required."

I love a happy ending! :-D
Posted by Barbara Skolaut">Barbara Skolaut  2008-02-10 19:26|| http://ariellestjohndesigns.com/]">[http://ariellestjohndesigns.com/]  2008-02-10 19:26|| Front Page Top

#6 If he cut's us off, cut him off and place an embargo.
Posted by Menhadden Hupolump2130 2008-02-10 21:00||   2008-02-10 21:00|| Front Page Top

#7 Venezuela is now importing close to $40 billion per year, mostly in food

That's $1000 or so person in food. Does Venezuela produce any food at all?
Posted by ed 2008-02-10 21:10||   2008-02-10 21:10|| Front Page Top

#8 person = per person.
Posted by ed 2008-02-10 21:11||   2008-02-10 21:11|| Front Page Top

#9 Oh, dear. What a pity oil is fungible. And various courts around the world have locked up US$12 billion of Venezuelan oil company assets. The more they try to export, the more gets taken away from them and placed in escrow pending award to the plaintiff Exxon, right?
Posted by trailing wife">trailing wife  2008-02-10 21:15||   2008-02-10 21:15|| Front Page Top

#10 This is just Chavez getting into his Don Quixote persona again. Give him a few days and the manic phase will pass and he will be on a downer and all quiet again.
Posted by tipper 2008-02-10 21:31||   2008-02-10 21:31|| Front Page Top

#11 Tipper, compared to Yugo, Don Qwix-oat was downright sane.

But then, so's just about everybody....
Posted by Barbara Skolaut">Barbara Skolaut  2008-02-10 21:43|| http://ariellestjohndesigns.com/]">[http://ariellestjohndesigns.com/]  2008-02-10 21:43|| Front Page Top

#12 His crude is not fungible, at least not on his side. Our refineries can take his low crade sulphur loaded stuff, but not many other places can. On the other hand, its easier for us to refine the sweet crude out of Libya, for instance.

Hey siezes the assets and Exxon takes him to court to get them back and he whines?

What an ass.
Posted by OldSpook 2008-02-10 22:00||   2008-02-10 22:00|| Front Page Top

#13 yeah frank i was thinking the same thing, how mnay other countries have the capabilities of refining the crap?
Posted by  sinse 2008-02-10 22:39||   2008-02-10 22:39|| Front Page Top

#14 As usual Hugo is talking crap.
Posted by Sock Puppet of Doom 2008-02-10 22:51||   2008-02-10 22:51|| Front Page Top

#15 On the same idea, does he think the world will build/alter refineries just to crack his tar?

Not at all likely when there's better lighter oils to crack, in short, you're stuck with the USA as your refinery for the forseeable future.

Your nation's stellar history of consfication, regeme changes, and revolutions make far reaching investments highly unlikely, as well.

Suck it up, you tried to screw us, now enjoy the return screwing.
Posted by Redneck Jim 2008-02-10 22:58||   2008-02-10 22:58|| Front Page Top

#16 how mnay other countries have the capabilities of refining the crap?

U.S. and China mainly, if I'm not mistaken.
Posted by SteveS 2008-02-10 23:02||   2008-02-10 23:02|| Front Page Top

#17 LUCIANNE/TOPIX > CHAVEZ THREATENS TO SEIZE NESTLE, PARMALAT PLANTS, OTHER ASSETS.
Posted by JosephMendiola 2008-02-10 23:07||   2008-02-10 23:07|| Front Page Top

#18 #7: Venezuela is now importing close to $40 billion per year, mostly in food

That's $1000 or so person in food. Does Venezuela produce any food at all?

Actually, a thousand per person per year is NOT much food, I assume he's talking wholesale here

I for one could NOT eat for a year on a thousand bucks, without gettin real deals on bulk wholesale foods like rice.(I'd be pretty skinny too)
Posted by Redneck Jim 2008-02-10 23:13||   2008-02-10 23:13|| Front Page Top

#19 CHAVEZ THREATENS TO SEIZE NESTLE,

Ummm, I thought Nestle was a Swiss company?
Posted by Redneck Jim 2008-02-10 23:16||   2008-02-10 23:16|| Front Page Top

#20 Actually, you could easily get 2500 cal/day of balanced carb/protein for $500/yr. Spend the rest on as much fruits and vegetables as you can find.
Posted by KBK 2008-02-10 23:35||   2008-02-10 23:35|| Front Page Top

10:11 Difar Dave
10:01 Old Patriot
10:00 NN2N1
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