Venezuela signals clear warning to the US government to back off on interference; offers Chins almost unlimited access to massive oil and gas reserves

Signaling a clear warning to the US government to discontinue its several years interference in Venezuela’s domestic political affairs, Venezuelan President Hugo Chavez Frias has turned to the Chinese government offering almost unlimited access to Venezuela’s massive oil and gas reserves.

www.vheadline.com/readnews.asp?id=16433 The offer forma a major part of a new trade deal between the Venezuela and China which will allow China preferential terms and conditions to operate oil fields in Venezuela and invest in new Venezuelan refineries.

Venezuela will supply 120,000 barrels of oil a month to China, in a deal which may well see a reduction in 60% exports to the United States while remaining the world’s 5th largest oil exporter.

www.vheadline.com/readnews.asp?id=14617 The move is seen as an own goal on the Bush administration which funded an anti-Chavez coup d’etat and a 2-month attempt to strangle the South American nation’s economy in a US$10 million sabotage of its oil industry.

www.vheadline.com/readnews.asp?id=22549 The United States government has effectively strained relationships with the Venezuelan government over the last five years since President Hugo Chavez Frias came to power on an anti-corruption ticket, overturning more than forty years of unbridled political and economic corruption and malfeasance.

The Chavez’ administration’s foreign policy, under the direction of current Foreign Minister (MRE) Ali Rodriguez Araque … a former Secretary General of the Organization of Petroleum Exporting Countries (OPEC) and most recently president of the state-owned Petroleos de Venezuela (PDVSA) conglomerate … www.vheadline.com/readnews.asp?id=23006 is trying to divert sales of crude oil and derivatives away from the United States to reduce its dependence on Washington D.C. dictates.

For its part, China’s burgeoning economy needs oil in increasing volumes and USA-initiated unrest in the Middle East added to Russia’s internal oil economic problems have focused attention strongly on Sino-Venezuelan partnership which will undoubtedly send US fuel prices rocketing as Washington’s “gunboat diplomacy” against oil-producing nations gains considerably diminished effect.

As a direct result of the unilateral USA/UK invasion of Iraq, oil prices are some 30% higher at this year’s end than in January 2004 and with China’s oil imports reckoned to be in the region of 110 million tonnes this year … up 21% on 2003 … a similar increase in imports from Venezuela www.vheadline.com/readnews.asp?id=23613 could spell further trouble for the already deficit-laden Bush 2 economy, especially when OPEC nations decide to defect to the Euro as oil payment currency, away from the crashing US$.

China admits to a lack of sufficient domestic oil production and wants to move away from the US sphere of oil interest in the Middle East to invest in other potential markets where Venezuela has recently become a focus of attention … China currently imports more than a third of its oil and gas from abroad.

In Beijing over the Christmas period, Chavez Frias says Venezuela will put many of its oil facilities at the disposal of the Chinese … they will would be given free rein to operate 15 mature oil fields in the east of Venezuela to produce more than one billion barrels of crude.

www.vheadline.com/readnews.asp?id=23230 Venezuela and China will also continue a joint venture agreement to produce stocks of trademarked Venezuelan substitute boiler fuel Orimulsion and Chinese firms are to bid for gas exploration contracts in the western Gulf of Venezuela on offer in 2005. A number of other important economic agreements have been signed, covering industrial and mining projects.