Wednesday, December 23, 2009

Iraq Blooms, Venezuela Crashes

Iraq plans to quadruple oil production, throwing OPEC into a frenzy.

Iraq aims for 12 million barrels a day -- Iran is concerned.

The world is already over-producing oil, in terms of current low demand. If Iraq carries through on its promise to increase production to 10 million barrels a day or higher, other oil-producing countries will be faced with reduced prices on the world market for their products.

Venezuela is already faced with a default on its sovereign debt of $90 billion. In fact, Venezuela is the nation most likely to go deadbeat on its debts. That may be surprising to those who have noticed how Hugo Chavez has attempted to use his nation's vast oil resources as a political weapon.

A default may make it more difficult for Chavez to pay for his expensive new military he wants to acquire from Russia and China. His plans to rule all of Latin America by placing friendly dictators as heads of state in Central and South America may also be delayed.

Implications for "Peak Oil": Iraq's rush to increase production will call into question the claims of several Peak Oil marketing scammers, who say that world oil peaked in 2005. Of course, almost everything in the real world calls those claims into question. Fortunately, Peak Oil true believers live in their own virtual world, which reflects inward upon itself recursively.



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