In another move to continue the conversion of Venezuela to a communist state, Hugo Chavez has told major American and European oil companies that he is planning on taking over several large oil project. This could spell problems for both the United States and Venezuela. The US is the largest importer of Venezuelan oil and Chavez's hatred of the US runs deep. He is actively seeking other buyers for his oil to reduce his dependency on the US. What this means to the US remains to be seen. We may find it difficult and more expensive to replace Venezuelan oil with other suppliers. On the other hand Venezuela's oil industry depends on US/European technology and management to get the most from his oil reserves. Already the state run oil industry is starting to show the signs of decay and reduced output. This decay is in part a sign of the kind of mismanagement that is brought about by a large political bureaucracy.

It is clear that we in the US need to reduce our dependence on foreign oil. There are many ways we can do that. One is by promoting the use of our own oil reserves. Another way is to invest in technology to extract shale oil and process liquefied coal which we have plenty of. But the most important solution would be to develop alternatives fuels and nuclear power. Alternatives fuels would reduce our dependence on unstable countries and help reduce air pollution. A win win proposition that would greatly increase the nations security, health, and stature in the world.

Venezuela on the other hand is looking at a losing proposition. As their energy output declines, the money to fuel Chavez's anti-American crusade will dwindle. This will also reduce his ability to maintain the standard of living for his people. Such a course of action may cause Americans to feel more insecure about our energy supply. This could spur us to invest more time and treasure into alternative energy sources. The more energy we produce on our own the less demand there will be for oil worldwide. The less demand for oil worldwide, the less money for leaders like Chavez and the rulers in the Middle East.

Hmmm... maybe that is not such a bad thing.

- Thomas Paine 2

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