spectras only
02-13-2006, 03:24 PM
Hugo Chavez aims for $100 a barrel
G2Americas | Intelligence Brief
100206 – No. 03/06 – Venezuelan President Hugo Chavez is seeking to raise world oil prices to $100 a barrel this year. Chavez needs a high and rising stream of oil revenues in 2006-2007 because Venezuela’s oil production capacity is collapsing, and his Bolivarian revolution can only be sustained by evergreater public spending. Chavez, who is seeking re-election to a second six-year term in December 2006, plans to spend up to $65 billion this year on social programs and infrastructure projects. He needs significantly more fiscal revenues, and oil is Venezuela’s only cash cow.
To advance his goal of $100 per barrel oil, Chavez is aligning VenezuelaÂ’s government with Iran and Syria, which are challenging the West over TehranÂ’s nuclear plans and the U.S. military presence in Iraq. Chavez this year also will embrace the Harakat al-Muqawamah al-Islamiyya (Islamic Resistance Movement), Hamas, which on Jan. 25 won 76 of 132 seats in the Palestinian parliamentary elections, giving the group the right to form the next Cabinet. The U.S. government considers Hamas a terrorist organization. Hamas leaders already vowed they will never recognize Israel and refused to renounce violence to achieve their political aims.
G2Americas | Intelligence Brief
100206 – No. 03/06 – Venezuelan President Hugo Chavez is seeking to raise world oil prices to $100 a barrel this year. Chavez needs a high and rising stream of oil revenues in 2006-2007 because Venezuela’s oil production capacity is collapsing, and his Bolivarian revolution can only be sustained by evergreater public spending. Chavez, who is seeking re-election to a second six-year term in December 2006, plans to spend up to $65 billion this year on social programs and infrastructure projects. He needs significantly more fiscal revenues, and oil is Venezuela’s only cash cow.
To advance his goal of $100 per barrel oil, Chavez is aligning VenezuelaÂ’s government with Iran and Syria, which are challenging the West over TehranÂ’s nuclear plans and the U.S. military presence in Iraq. Chavez this year also will embrace the Harakat al-Muqawamah al-Islamiyya (Islamic Resistance Movement), Hamas, which on Jan. 25 won 76 of 132 seats in the Palestinian parliamentary elections, giving the group the right to form the next Cabinet. The U.S. government considers Hamas a terrorist organization. Hamas leaders already vowed they will never recognize Israel and refused to renounce violence to achieve their political aims.