Chávez-China Oil Deal May Produce Unsuspected Winners
Hugo Chávez ended his recent visit to Beijing with an announcement that he intends to dramatically increase Venezuelan oil exports to China in the years ahead. This was followed by a statement from Chávez’s energy minister that Chinese firms plan to invest $5 billion in Venezuela’s oil sector. As Venezuela is a major supplier of oil to the US, these events raised the eyebrows of those in Washington concerned with the impact of China’s growing oil demand. Yet a closer look at the agreements signed in Beijing reveals little cause for alarm. In fact, Chinese investment in Venezuela could actually prove beneficial for US energy security.