# Venezuela Buys Oil From Russia



## tomahawk6 (4 May 2006)

http://www.rigzone.com/news/article.asp?a_id=31765

I think Venezeula is in need of foreign oil experts to manage the state owned oil company to maximize its oil production. China may provide this capability. Dropping oil production is a threat to Chavez and his ambitions.


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## GAP (4 May 2006)

Avoiding conspiracy theories....., there could be a good argument that the nationalization of the oil industry in Venezuela was initiated by China. One of China's major problems is a secure source of oil. Then here is a country that has oil and has multinational organizations running/owning it, but does not have the ability or personnel to do it themselves.

Solution: Nationalize oil/gas and we (China)will come in and run production and give you(Venezuela ) a nice long term contract for supply to us. Solves both problems for Venezuela and China. 

Need an example? Try the Panama Canal.


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