(venezuela) Top-level Chinese delegations negotiate crude oil contracts

[bemildred]

This is a bit incoherent, but seems worth taking note of.

Edit: BTW, if it's not clear, this is a threat.

President Hugo Chavez Frias is warning that any attempt to overthrow his government will raise international oil prices to more
than US$50 a barrel In a published interview, the News York Times quotes Chavez Frias as saying he would not tolerate any
US-led attempt to force his resignation ... he said that the US government led by George W. Bush does not respect the Venezuelan
government, and noted Bush's continuous interference in Venezuela's internal affairs adding that it could jeopardize a key providers
of oil to the United States ... "I can not believe a government is willing to put its oil supplies at stake!"

...

Meanwhile, VHeadline.com can reveal that top-level delegations from the Peoples' Republic of China have visited Venezuela
recently to negotiate supply contracts which could relieve Venezuela of its customer-relationship dependency on North American
markets.

It is known that while there is a lot of pressure on the Chavez Frias administration to simply walk away from North American crude
oil markets in view of the rapidly devalued US$, Chavez Frias is personally waiting for an electoral win by US presidential
candidate John Kerry to remove George W. Bush from office before signing irrevocable long-term supply contracts with the
Chinese.

Vheadline

[htuttle]

1. Well, that's some insurance policy

There are pieces moving all over the chessboard now.

Unfortunately, Bush still thinks he's playing Liar's Poker, and he's sitting there with a pair of threes...

[donsu]

2. give that man a medal!

save your pennies

[Judi Lynn]

3. This is really, REALLY interesting.

Your last paragraph indicates he's not going off half-A'd about it.

Thanks a lot.

[bemildred]

4. Yes.

It's the old carrot and stick routine.

Many interesting things to think about in a very short,
not too coherent, article.

Nice picture of Hugo too.

[Judi Lynn]

5. Yep, that WAS great! He seems so much at ease in all his photos. n/t

[ctex]

6. Chavez is threatening to cut off his nose to spite his face

China has been buying bitumen from Venezuela for some time. I suspect the delegation from China is really trying to extend that agreement. Bitumen (asphalt found in the natural state) is very diffcult to refine into valuable oil products such as motor gasoline, diesel fuel, home heating oil, etc.. The Chinese don't refine it, but burn it directly in power plant boilers in lieu of coal or residual fuel oil.

The only way China could afford to buy Venezuelan crude for refining into oil products, would be to pay a steep discount to the price being paid by US refiners. Part of the discount would be due to the greater distance from market. The greater part of the discount would be due to the fact that most of Venezuala's crude is of extremely poor quality and cannot be effectively processed in the average refinery. A lot of US refineries can process poor quality crudes, but very few Asian, African, Latin American and European refiners would find it worthwhile to do so (an exception are Venezuela's own refineries, most of which can handle heavy crude, but which can process only about 30% of the country's total production).

At the end of the day I doubt Chavez would be happy getting $5-7/barrel less for his nations oil.

[bemildred]

9. No doubt that is why he left the door open for a more

cooperative attitude from the US Government. And no doubt the
US Government would not be pleased either with the result if
Venezuela started selling it's oil to China instead. The World
is no longer awash in Petroleum, and China at least has the
means to pay for goods with something besides debt.

[w4rma]

10. It appears he won't be cutting off noses unless Kerry loses the election.

It is known that while there is a lot of pressure on the Chavez Frias administration to simply walk away from North American crude
oil markets in view of the rapidly devalued US$, Chavez Frias is personally waiting for an electoral win by US presidential
candidate John Kerry to remove George W. Bush from office before signing irrevocable long-term supply contracts with the
Chinese.

[MasonJar]

7. Maybe the bottom line is not all that is important in other countries'

world. I would be weeding out clients who were trying to excise me even if someone else paid less. He is trying after all to help the poor in Venezuela, not the bush corporate cronies.

[Just Me]

8. Hee, hee, hee,....

,...must be very disturbing that those who imagine themselves "rulers of the earth" are being challenged!!! Ohhhh, I am feeling rather warm and fuzzy inside, right now. I can't help it. At least one claw of corporatism is being trimmed which is like one hugely fabulous step for humanity. Sorry you wannabe rulers of the world,...we don't want another tyrannical empire!!! We believe in something greater than you greedy, murderous, deceptive, gluttonous and most definitely God-less dark despots!!!!

[rooboy]

11. Important lesson to any right wingers out there.

If you decide to make an enemy of a needy country there is always a rival willing to step into the breach. It's a big reason why this politics of spite is so dangerous...