Tuesday, January 09, 2007
Venezuelan Nationalization Spree! Russia Halts Oil to Europe.
As if we needed further indication that the global supply of oil is in tenuous hands, a dispute over a Russo-Belorussian oil pipeline (aptly named the "Friendship Line") has cut off supplies to Western Europe, rekindling discussion in Europe about the reliability of Russia as a supplier of energy. On the other side of the globe, Hugo Chavez threatened to nationalize TV and Telecommunications industries today. "We're heading toward socialism, and nothing and no one can prevent it," Chavez announced at a press conference in Caracas. His first official his first act as the new premier of TV- A 24 hour movie marathon featuring "Guerrilla" and "My Motherland is the Organization of Communist Youth!" (to be simulcast on TBS tonight!) FYI: Venezuela is the western hemisphere's largest producer of oil. Remember that when you fill up next time at your local Venezuelan State Oil Company, Citgo.
This past month saw the price of a gallon of gas fall by about 50 cents. Head's up, Wexford, it ain't gonna last. Besides instability caused by our own failed attempt to create a brave new world, Russia and Venezuela promise years of future price fluctuation. And why not, every spate of instability causes significant increases in the cost of fuel. Regardless of threatening technocratic essays claiming market instability will drive gas-dependent nations towards alternative energy sources, short term fuel-spikes leave Putin & Chavez flush with cash. And with fuel-economy regulations and mass-transit investments still-born on Bush's desk, the threat of an Alternative Energy backlash is as hollow as Chavez' promised New World Order.
Posted by 1111 at 9:02 AM