Is Russia - Venezuala partnership a sign of Russian decline?

karras

Russia and Venezuela are joining together to create what would be a giant oil consortium, "the biggest in the world", according to Hugo Chavez. The venture will begin with projects in Venezuela and then pursue projects in other Latin American countries.

My interpretation of this is that Russia is beginning to make arrangements in advance of a terminal decline in oil production. It seems that Russia is trying to follow in the footsteps of the US model of companies producing oil in other parts of the world while sending the profits back home.

All of this is to say, I believe Russia's production is on the brink of a precipitous decline. Russia is the world's 2nd largest producer, but has the world's 8th largest reserves.

mos6507

I think it has more to do with Chavez looking to build a Devil's Rejects version of NATO for self-preservation and to spite the US.
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SILENTTODD

timmac · Heavy Crude Joined: Mar 27, 2008 Posts: 269

This just shows to me that the world is going backwards diplomaticly, economy's tanking and more nukes are being built in more places than ever.

We are headed into WW3 and this time we [America] is the target thanks to Putin [satan]...

f2tornado · Tar Sands Joined: Jun 21, 2008 Posts: 51

Peak Russia?

Oct. 2 (Bloomberg) -- Russia's oil production declined in September as companies struggled with costs and maturing fields, bringing the world's second-largest crude exporter closer to its first annual drop in output since 1998.

Production fell to 9.83 million barrels of crude a day (40.2 million metric tons a month), 0.4 percent less than a year earlier, according to figures released by the Energy Ministry's CDU-TEK unit.

ROCKMAN

I agree with Tex. Hugo probably has several motives behind this move. Not the least of which is to bring another potential protector into his game plan. No...Hugo isn't a Marxist. He's an absolute dictator. His sole strength is the ability to buy support of the masses with the oil revenue. Stop the money train and his support disappears. Vz fields have been in decline/underdeveloped because companies cannot take the political risks. But China has not hesitated, over the last 10 years, to dump billions into the Vz oil industry. Now it looks like Hugo wants to pull Russia into the same position. Perhaps he’s worried that, as PO becomes more problematic, suspicions of weapons of mass destruction in Vz might arise. As long as China/Russia has sovereign ownership of a significant portion of the Vz oil infrastructure he would have little concern about US intervention into Vz affairs.