China's Thirst for Oil Undercuts U.S. Effort on Iran/Chavez Heads to China

[Minstrel Boy]

China's Thirst for Oil Undercuts U.S. Effort on Iran

Dec. 20 (Bloomberg) -- U.S. efforts to rein in Iran's suspected nuclear weapons program through economic sanctions are being stymied by China's increasing reliance on the Islamic nation for oil.

The U.S. has tried for more than a year to get the United Nations Security Council to impose restrictions that might deter Iran from building an atomic bomb; China, which holds one of five vetoes on the council, is threatening to block those attempts. At the same time, a decades-long U.S. economic embargo of Iran is being undermined by a growing China-Iran trade partnership, highlighted by a $70 billion deal in October for oil and gas.

``The more they get involved with Iran, the more likely they are to cast a jaundiced eye on any kind of international sanctions against Iran,'' said Gary Sick, a Columbia University professor who was a National Security Council adviser under U.S. Presidents Gerald Ford, Jimmy Carter and Ronald Reagan and wrote ``All Fall Down: America's Tragic Encounter With Iran'' in 1985.

President George W. Bush in 2002 labeled Iran part of an ``axis of evil,'' and preventing it from obtaining nuclear weapons is one of the administration's top foreign policy goals. ``It would be a bad idea for us to be confronting atomic ayatollahs,'' said John Pike, a military analyst with Globalsecurity.org, an Alexandria, Virginia-based research firm.
http://quote.bloomberg.com/apps/news?pid=nifea&&sid=a7D.mHn60_tk

Chavez Heads to China to Expand Venezuela Energy Ties

Dec. 20 (Bloomberg) -- Venezuelan President Hugo Chavez will travel to China tomorrow in a bid to broaden energy ties with the world's fastest growing economy, Venezuela's foreign minister said.

Venezuela, the world's fifth-largest oil supplier, is seeking to shift exports away from the U.S. and is in a position to supply growing demand from China, Foreign Minister Ali Rodriguez said at a press conference in Caracas. Chavez, 50, will travel with Energy and Mines Minister Rafael Ramirez, a ministry spokesman said.

``It's in Venezuela's strategic interests to diversify markets,'' said Rodriguez, 67, former chief executive of state oil company Petroleos de Venezuela SA.

Chavez, who accused the U.S. of backing a 2002 coup attempt and supporting opponents who sought to force him from office in a recall vote in August, is trying to lessen his dependence on the U.S. market where Venezuela ships more than 60 percent of its estimated daily crude exports of 2.2 million barrels a day.

http://www.bloomberg.com/apps/news?pid=10000086&sid=addDqpF2XlYc&refer=latin_america

[bvar22]

1. "Chavez will travel to China tomorrow "

Blowback.
Nuff said.

[leesa]

3. I agree. The war is lost.

[daleo]

4. Yeah, supporting a coup against someone can have this effect. n/t

[cliss]

2. This ought to be very interesting.

I've read that China is scouring the globe in search of energy sources. Oil, natural gas, coal, they need it all. They are the REAL emerging power, as opposed to us which are in a descent.

Unfortunately, the US brought upon itself the very problems it was trying to avoid by fighting so aggressively about the world's remaining energy sources. Pure desperation drove us into Iraq. It was not out of strength but weakness when we tried to oust Hugo Chavez a few years ago.

He's still in power, and nurtures a wish for revenge on us for what happened. He'll sign the papers in Pyongyang tomorrow.

He'll send copies to the State Department, sealed with a kiss from Hugo.

[Judi Lynn]

5. So interesting, isn't it?

From the first article:

Venezuela, which sends more than 60 percent of its oil to the U.S., began negotiations with Colombia last month on building an oil pipeline to the Pacific Ocean that would enable greater exports to China by bypassing the Panama Canal.
(snip)

Can you imagine a Democratic President making things so unliveable nations would have to seek such unexpected measures? Maybe it's their reaction to stark news that ass####s have taken over our country.


~~~~~~~~~~~~~~~~~~~~~~~~~~

Good news for Venezuela, from a Friday article:

Venezuela leads Economic Growth in Latin America

Friday, Dec 17, 2004
By: Sarah Wagner - Venezuelanalysis.com

Caracas, December 16, 2004—According to preliminary reports released by the Economic Commission for Latin America and the Caribbean (ECLAC), Venezuela registered the largest level of economic growth in Latin America, from a negative balance of 9.7% in 2003 to a positive balance of 18% in 2004. The economy of Latin America and the Caribbean also exceeded expectations with an average regional growth of 5.5%, a figure that surpasses world average growth of 4%.
“Oil –rich Venezuela’s economy will expand at almost 20% - the kind of growth matched only by booming Asian economies,” says the ECLAC report.
The Inter-American Development Bank (IADB) stated that regional exports reached $445.1 billion for the year, a growth of over 20% in comparison with 2003. The Washington-based organization attributes this growth to the US economic expansion and notes that strong recovery in countries such as Venezuela, Uruguay and Argentina boosted the region’s performance.

This year marks the best regional economic performance since the debt crisis in 1982 and only the second time since 1980 that the six largest Latin American economies (Venezuela, Uruguay, Argentina, Brazil, Chile and Colombia) simultaneously experienced a growth rate of over 3%.
(snip/...)

http://www.venezuelanalysis.com/news.php?newsno=1449

[Minstrel Boy]

6. "Chávez extends regional muscle" - Christian Science Monitor

The headline writer couldn't resist the usual metaphors of violence to describe the actions of "Venezuela's strong man" - "extends muscle"; "pushing leftist vision - but this is still a largely positive piece.

Chávez extends regional muscle

Flush with cash from high oil prices, Venezuela's president is pushing his leftist vision across the region.

By Mike Ceaser | Correspondent of The Christian Science Monitor

Dec 20

CARACAS, VENEZUELA – Record world oil prices have filled Venezuela's treasury and helped President Hugo Chávez and his "Bolivarian Revolution for the poor" win two elections in recent months. Now, freed from worries about domestic political opposition, Mr. Chávez is using his new wealth to extend his influence beyond his nation's borders - and perhaps escalate his long-running confrontation with Washington, say observers.

In recent months, Chávez has expanded Venezuela's policy of supplying oil at below-market prices to poor neighbors. He has also made a major arms purchase from Russia and pushed for the creation of a regional petroleum corporation. A firebrand populist and admirer of Cuba's Fidel Castro, Chávez has often spoken of spreading his leftist vision across this continent, in contrast to the conservative economic policies that swept South America in the 1990s.

...

Another way Chávez has used his oil resources is by working to create a continent-wide petroleum corporation called PetroAmerica, in which the region's state-owned oil companies would participate. The idea has generated interest in Brazil and other energy- hungry neighbors. The Venezuelan government says PetroAmerica would enable Latin America to end exploitation by huge petroleum corporations, but some analysts see it as a mechanism to leverage Venezuela's oil resources into greater regional influence.

...


Chávez said recently that Venezuela would expand its social and medical programs for the poor, the backbone of his "Bolivarian Revolution," into neighboring nations. Chávez has not hesitated to take positions on issues in other countries, such as landlocked Bolivia's right to a seaport; and he has befriended Bolivian politician and coca farmer leader Evo Morales, who shares Chávez's anti-Washington and antiglobalization viewpoints.

http://www.csmonitor.com/2004/1220/p06s01-woam.html

[Judi Lynn]

7. Those right-wing labels are hard for certain media sources to overcome

You're right. Maybe it's like paying tithe, or tribute to the BFEE, or paying the "protection" racketeers so they won't come in and ruin your business!

From the article:

The arms purchases generated concerns in both Washington and Colombia. An unidentified Bush administration official accompanying the president in Canada recently told reporters: "Millions of dollars are going to be spent on Russian weapons for ill-defined purposes," and added: "We shoot down MiGs."
(snip)

Mighty scarey, kids. Such a big chip on a chickenhawk shoulder!

This, from the article, is unexpected coming from Colombia, just behind Israel in HUGE annual gifts from the U.S. taxpayers, including all KINDS of weapons, some very recently:

Sen. Rodrigo Pardo of Colombia has called for reaching an arms control agreement with Venezuela.

Since Colombia and Venezuela are cooperating on the oil pipeline, if they decide to adopt this agreement, it could mean some important stability beyond the reach of _{George W. Bush.}

It would be spectacular to see Latin America FINALLY capable of creating its own alliance of countries without interference from bullies.

[Minstrel Boy]

8. Venezuela promises China more energy

Venezuela promises China more energy

Tuesday, 21 December


...

Mr. Rodriguez explained that "it is of strategic interest to Venezuela to diversify her markets without adversely affecting any of the customers who are already receiving energy goods and services."

...

President Chavez's China trip, his third since he took office in February 1999, will concentrate on "energy and technology" issues, according to the Foreign Affairs Minister.

Mr. Rodriguez pointed out that China is building in Venezuela an "Orimulsion plant" to produce fossil fuel which will be used to replace coal in the generation of thermoelectrical energy.

"Surely (Venezuelan) gas will also be of some interest (to the Chinese)," added the minister.

http://www.falkland-malvinas.com/Detalle.asp?NUM=4860