Reply #10: Good article by Palast [View All]

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http://www.commondreams.org/views04/0816-03.htm
Maybe it's the oil. Lots of it. Chavez sits atop a reserve of crude that rivals Iraq's. And it's not his presidency of Venezuela that drives the White House bananas, it was his presidency of the Organization of Petroleum Exporting Countries, OPEC. While in control of the OPEC secretariat, Chavez cut a deal with our maximum leader of the time, Bill Clinton, on the price of oil. It was a 'Goldilocks' plan. The price would not be too low, not too high; just right, kept between $20 and $30 a barrel.

But Dick Cheney does not like Clinton nor Chavez nor their band. To him, the oil industry's (and Saudi Arabia's) freedom to set oil prices is as sacred as freedom of speech is to the ACLU. I got this info, by the way, from three top oil industry lobbyists.

snip

And what seems to have gotten our Veep's knickers in a twist is not the price of oil, but who keeps the loot from the current band-busting spurt in prices. Chavez had his Congress pass another oil law, the "Law of Hydrocarbons," which changes the split. Right now, the oil majors - like PhillipsConoco - keep 84% of the proceeds of the sale of Venezuela oil; the nation gets only 16%.

Chavez wanted to double his Treasury's take to 30%. And for good reason. Landless, hungry peasants have, over decades, drifted into Caracas and other cities, building million-person ghettos of cardboard shacks and open sewers. Chavez promised to do something about that.