So from what I read on this AP story, Hugo Chavez is none to pleased with ExxonMobil's attempts to take their ball back.
What does Chavez expect? Chavez seized control of ExxonMobil's (and ConocoPhillips's and others) Orinoco assets in Venezuela. So, this newest move is tit for tat.
What's Chavez's reaction when he doesn't get his way? Throw a temper tantrum. Threaten to stop selling oil to the US. Oh boy... that'll kill us. The US is Venezuela's #1 customer, but the suppliers ahead and just behind Venezuela on the ranking chart will fall all over themselves to sell us even more oil. It wouldn't be a problem to make up the difference in short order. Keep in mind, too, that the US is part of this list, contributing some 4 times what we import from Canada.
Will all this mean that much? No, not really. What it will do is slightly increase oil prices for awhile, but they'll go back down as our importers correct the situation. After all, it's much easier for our importers to sell to us than it is for them to sell to other countries.
BTW, Chavez is not so dumb as to stop selling to the US. He'll cry for now, cause gas prices to go up for a little bit, and then he'll go away, just like the rest of the tinpot dictators. But when US oil exports account for 15-20% of Venezuela's GDP, it's not difficult to see who'll outlast who here.
Food for thought: Why is it that socialists like to blame conservatives for high gas prices, but Chavez, a socialists socialist, is more than willing to push up gas prices to serve himself?
Also to note, he's got the propaganda machine in full swing here... the US as an "empire" and "Mr. Danger".
Finally, if you'd like a more centered article about this, read here. Oh, and if you want play-by-play commentary on the situation, check out Citgo Boycott.
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