On top of disruption to oil supplies this week from Nigeria after sabotage and kidnapping, and on top of concerns over stability of supplies from Iran should the UN initiate sanctions, now the 5th largest oil producer in the world has asked the question 'what would happen if we were to stop exports to the US'?
Should this implied threat be taken seriously it could spell further increases in oil prices in an already jumpy market. It could also fuel speculation that the US will taken action to remove Chavez from power in the coming months....
Should this implied threat be taken seriously it could spell further increases in oil prices in an already jumpy market. It could also fuel speculation that the US will taken action to remove Chavez from power in the coming months....
President Hugo Chavez today (Friday 13th) asked hypothetically in his comments before the National Assembly what would happen if oil-exporting Venezuela cut off shipments to the United States. The comments came as Chavez blasted attempts by the USA government to block a deal between Spain and Venezuela for twelve planes with American parts.
The U.S. Embassy in Madrid announced that the United States had denied permission for the sale of planes, citing concerns about a Venezuelan government that it said had "grown progressively more autocratic and antidemocratic."
"What is this if not evidence of the horrific imperialism that the government in Washington wants to impose on the world?" Chavez said, reading news of the U.S. action as he addressed the assembly on the state of the nation.
"I denounce once again before the world the imperialist attack by the U.S. government against the Venezuelan people and the Venezuelan government," he said.
In Washington, State Department spokesman Sean McCormack said the United States concluded the proposed transfers were not consistent with the country's interests.
"We're concerned that this proposed sale of military equipment and components to Venezuela could contribute to destabilization in Latin America and have made that view clear to the Spanish, Venezuelan and other governments in Latin America," McCormack said.
U.S. law authorizes the government to prevent a country from transferring military equipment purchased in the United States to a third country.
The acquisition by Venezuela of certain types of military equipment, McCormack said, would raise "a lot of questions about their potential use and what effect that may have on the stability in the region."
Chavez called the U.S. concerns ridiculous, saying "these are transport planes."
Spain said Friday it did not share the U.S. concerns and would go ahead with the deal, removing the U.S.-made components and replacing them with parts made elsewhere.
Spain agreed in November to sell Venezuela the planes and eight patrol boats for $2 billion, despite U.S. threats at the time to oppose the transfer. It would be Spain's largest-ever defense deal, involving 10 C-295 transport planes and two CN-235 patrol planes, as well as four ocean patrol boats and four coast patrol vessels.
Officials have said neither the boats nor the transport planes were armed and that the patrol planes were equipped only for self-defense. But McCormack said Friday that the U.S. was rejecting the entire sale, including the boats.
The U.S. government has also expressed concern about Russia's planned sale of helicopters and 100,000 Kalashnikov rifles to Venezuela starting early this year. But Russia has said it too is going ahead with the deals.
Chavez called the U.S. action part of a campaign to smear his government.
"A new attack against Venezuela is just beginning," Chavez said. "Mr. Danger will crash up against the force of the truth and the force of morality," Chavez added, in a reference to President Bush.
Chavez, who says he is leading a socialist revolution for the poor, is up for re-election in December. He remains popular amid high oil prices that have funded his social programs and helped bring economic growth of 9.4 percent last year.
Chavez has accused the United States of plotting to overthrow him and warned that any invasion would be defeated. Washington has strongly denied they have any such plans, although there are plenty of rumors to suggest that it might be on the cards. Chavez says that Venezuela must be prepared.
Venezuela is the world's 5th largest oil exporter and their biggest customer is the United States.
Chavez said, "Every day we send them 1.5 million barrels of oil - what would happen if tomorrow I were to say that no ship leaves for the United States?"
"How high would the price of a barrel go? I think it could hit $100," he threatened. "I don't want to do it, but war is war!"
[NOTE: Conflicts over oil can be found at the root of almost every war in the 20th century and this century looks set to be worse still. The USA with just 5% of the world population is using 25% of the worlds oil production but demand from the rest of the world is increasing rapidly also. Global production is close to the highest it will ever be and is set to decrease. When it does, the oil wars of the last century will be eclipsed by a bitter worldwide struggle over the remains scraps. Want to find out more about the implications of peak oil? The rampART social centre in east London will be hosting a grassroot conference on peak oil next month. If you would like to attend or help organise the event, email rampart AT mutualaid DOT org.]
The U.S. Embassy in Madrid announced that the United States had denied permission for the sale of planes, citing concerns about a Venezuelan government that it said had "grown progressively more autocratic and antidemocratic."
"What is this if not evidence of the horrific imperialism that the government in Washington wants to impose on the world?" Chavez said, reading news of the U.S. action as he addressed the assembly on the state of the nation.
"I denounce once again before the world the imperialist attack by the U.S. government against the Venezuelan people and the Venezuelan government," he said.
In Washington, State Department spokesman Sean McCormack said the United States concluded the proposed transfers were not consistent with the country's interests.
"We're concerned that this proposed sale of military equipment and components to Venezuela could contribute to destabilization in Latin America and have made that view clear to the Spanish, Venezuelan and other governments in Latin America," McCormack said.
U.S. law authorizes the government to prevent a country from transferring military equipment purchased in the United States to a third country.
The acquisition by Venezuela of certain types of military equipment, McCormack said, would raise "a lot of questions about their potential use and what effect that may have on the stability in the region."
Chavez called the U.S. concerns ridiculous, saying "these are transport planes."
Spain said Friday it did not share the U.S. concerns and would go ahead with the deal, removing the U.S.-made components and replacing them with parts made elsewhere.
Spain agreed in November to sell Venezuela the planes and eight patrol boats for $2 billion, despite U.S. threats at the time to oppose the transfer. It would be Spain's largest-ever defense deal, involving 10 C-295 transport planes and two CN-235 patrol planes, as well as four ocean patrol boats and four coast patrol vessels.
Officials have said neither the boats nor the transport planes were armed and that the patrol planes were equipped only for self-defense. But McCormack said Friday that the U.S. was rejecting the entire sale, including the boats.
The U.S. government has also expressed concern about Russia's planned sale of helicopters and 100,000 Kalashnikov rifles to Venezuela starting early this year. But Russia has said it too is going ahead with the deals.
Chavez called the U.S. action part of a campaign to smear his government.
"A new attack against Venezuela is just beginning," Chavez said. "Mr. Danger will crash up against the force of the truth and the force of morality," Chavez added, in a reference to President Bush.
Chavez, who says he is leading a socialist revolution for the poor, is up for re-election in December. He remains popular amid high oil prices that have funded his social programs and helped bring economic growth of 9.4 percent last year.
Chavez has accused the United States of plotting to overthrow him and warned that any invasion would be defeated. Washington has strongly denied they have any such plans, although there are plenty of rumors to suggest that it might be on the cards. Chavez says that Venezuela must be prepared.
Venezuela is the world's 5th largest oil exporter and their biggest customer is the United States.
Chavez said, "Every day we send them 1.5 million barrels of oil - what would happen if tomorrow I were to say that no ship leaves for the United States?"
"How high would the price of a barrel go? I think it could hit $100," he threatened. "I don't want to do it, but war is war!"
[NOTE: Conflicts over oil can be found at the root of almost every war in the 20th century and this century looks set to be worse still. The USA with just 5% of the world population is using 25% of the worlds oil production but demand from the rest of the world is increasing rapidly also. Global production is close to the highest it will ever be and is set to decrease. When it does, the oil wars of the last century will be eclipsed by a bitter worldwide struggle over the remains scraps. Want to find out more about the implications of peak oil? The rampART social centre in east London will be hosting a grassroot conference on peak oil next month. If you would like to attend or help organise the event, email rampart AT mutualaid DOT org.]
Comments
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"I have an obligation to fight a war against US imperialism"
14.01.2006 02:23
The Venezuelan President believes that such a battle has already started in "political and ideological arenas"
In a new episode of the verbal cold war between Washington and Caracas, Venezuelan President Hugo Chavez said his country was ready to resist any US aggression and said that the battle "had already begun in the political and the ideological arenas". Chavez also accused the US of meddling in the modernization of the Venezuelan armed forces as warned that he, as the leader of a self-denominated peaceful democratic revolution, "has an obligation to fight a war against US imperialism."
Chavez made the statements upon inauguration of the new military academic year for military chiefs. There, Chavez stated that the United States has prevented Brazil from selling Supertucanos warplanes amidst "plans to stop modernization of the (Venezuelan) Armed Forces." According to Chavez, Washington is blocking the selling of US military techonology from Brazil to modernize Venezuelan F-16s warplane fleet.
"This is the same thing that happened when they (Washington) tried to stop Spain from building ships, patrol boats and cargo planes for us. Now they are doing the same thing regarding (warplanes) F-16. They have refused to provide major maintenance; they are delaying shipments of spare parts. Let us not worry. I have sent a special taskforce to Moscow. If we have to substitute the fleet of F-16s with modern MiG planes, we will do it," the President said.
Chavez also reminded that He reminded that Venezuela has already purchased Russian choppers and rifles, adding that such equipment is to arrive soon in the country.
Meanwhile, Washington warned that the modernization of the Venezuelan military could lead to a conflict with its neighbours. Chavez quickly ruled out any eventuality and went on with his policy to have a presence in regional affaris.
In this sense, he suggested to wonder why Evo Morales - a socialist farmer leader with close ties with Cuban leader Fidel Castro - was elected as the president of Bolivia and why presidential candidate Ollanta Humala - a nationalistic leader who likes to compare himself with Chavez - is leading polls in Peru.
Humala visited Chavez early this year, what led to an angry protest of the Peruvian President Alejandro Toledo, who said that Chavez "was not the President of Latin America." "He (Humala) asked for an interview with me, and I accepted to see him. Peruvian President (Alejandro Toledo) went mad on this. What can I do? I have an interest in meeting him and hearing him (Humala.) We talked for six hours. He talked to me about the indigenous people in Peru; they have been forgotten and abandoned," explained Chavez.
says Chavez
I see
14.01.2006 11:16
sceptic
America is not the root of all evil, get over it.
14.01.2006 13:00
Concerned
Some corrections
14.01.2006 15:24
US military interventions from the 1st world war onwards have never be 'selfless'. Get real!
America might not be the root of all evil but they are currently the worlds only superpower and spend more on their military budget than the rest of the world combined and have over 700 military bases in countries around the world and are the only country to have used nuclear weapons. I think they fit any reasonable definition of an evil empire much better than most.
axis of evil
If ...
14.01.2006 20:02
Chavez can indeed go to the Russians if he wants to. His choice. But this hardly constitutes an 'attack'. You might say the US is not being very friendly to Chavez; equally, you can say Chavez, at least in his rhetoric, has been distinctly unfriendly to the US. So why should they help him out?
sceptic
hmmmmm
14.01.2006 22:18
...
Earth to 'Concerned'
16.01.2006 13:08
Your naive and childish view of America's imperialistic policies would be amusing if it was not so scary. So slaughtering, between 2 - 3 million Vietnamese and over 100,000 Iraqis to name just the two most infamous cases is alright because it ‘just wants protect the interests of its economy’ is ok is it?
Grow up.
More Concerned
oh right
17.01.2006 04:40
masked bandit
Auntie American and Uncle Sam
17.01.2006 20:06
When the US wanted to export UK aircraft displays to Israel against UK law, Jack Straw rushed to rewrite UK law.
Spain has decided to strip out all the US technology and replace it with european equivanlents, hola. Spain is the Europes bridge to the americas.
Danny
We should not separate
17.01.2006 22:38
...
Seperate everything
18.01.2006 01:18
We should not only separate the US from Europe, we should break every unjust bond that joins the obsolete power structures that scorch the earth. The British union must be recinded one nation at a time for any of of to be forgiven the 'British' empire. All the structures that supported this war should be fought against. Asia is buying Africa from us, and paying in beads. Our poor aren't getting rich dying in Iraq. Our best journalists in effect lie to us continously, to massage our guilt for our inactivity, our compliance.
Our problems are obvious though the solutions are obviously obstructed.
Few of us love more than a hundred people. Most of those we love pay income tax to pay to kill more people than we love - in Iraq, everyday. They don't need to die. The invasion should have been more vocifereously opposed from when it was first signalled. We should all have been acting as if it was our family and friends starved of food, cut-off from electricity and communications, continously thirsty and never safe from kidnap or being blown apart.
The US could either :
a) drive smaller cars, insulate thier homes and investigate in renewables (and eat less while they are at it - stop drinking from the gas nozzle)
or
b) obliterate a lesser people in order to grab their resources
Easy choice eh?
We could look the other way or stage our own velvet revolution. Break from the US, break from the UK, break every power strucure into more managable bites. Stop the gluttons today for your own kids tommorow. Even a cursory glance at recent history shows 5% of the population drinking 25% of the oil,in a nation so unbalanced towards military-industrial subsidies that they outspend thier next twenty rivals. Capitalism has expanded until it burst its own environment. Diplomacy is not an option.
Danny
Still Disagree
18.01.2006 11:21
...