In Reply to: Who is Chavez trying to befriend? posted by MMasztal on May 1, 2007 at 09:10:08:
As world oil supplies tighten and global consumption keeps rising, many oil producing countries will be (or already are) nationalizing their supplies to some extent. They want more control over the eventual disposition of the oil than they would have if it all went straight onto the open market. This may be very important if they think they may eventually need to satisfy domestic demand in preference to international demand.Of course, if this reading is correct, it spells trouble for oil importing nations. Oil exports are likely to fall much faster than overall production as domestic markets get full supplies and imprters suck the hind teat.
I don't think it's a Chavez thing so much as a "peak oil" thing.
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Follow Ups
- This is just part of a coming global trend of oil nationalization - GliderGuider 05/1/0709:39:05 05/1/07 (1)
- Re: This is just part of a ... - piece-it pete 05:50:22 05/2/07 (0)