Hugo Chavez's Dangerous Bluff

Hugo Chavez is reported here to have sent out a threat lacking subtlety about cutting off the US from supply of crude petroleum. One wonders whether he understands what the real effects of this would be. The US is still the major buyer of crude petroleum and it is a sensible argument that any real conservation efforts from the US would be critical for prices to fall internationally. Taking account of the unintended effects, US consumers may simply purchase petroleum from an alternative source or start on a long overdue conservation effort through improvements on engine standards and an alternative energy source.

Once the SUV drivers are compelled to demand cheaper fuel and labs set to provide an alternative source, it would be a matter of time before crude petroleum producers have more petroleum than they can sell. Mr. Chavez ought to be careful what he wishes for because he may just have it. He may be a brilliant polemicist but he should review this threat.