Chavez Looks North as Oil Prices Plummet

Until recently Venezuela’s official protocol was to nationalize oil production, the country’s largest source of income, but falling oil prices and a weakening world economy are beginning to shake Chávez’s firm stance on economic independence. According to the New York Times, senior officials of the Chávez administration are quietly accepting bids from foreign oil companies such as Chevron, Royal Dutch/Shell and Total of France. These companies are being offered access to some of the world’s largest and most stable oil reserves; an appealing proposal considering the current instability of the middle-eastern market.

The recent meeting between Chávez and Brazilian President Luiz Inácio Lula da Silva provided further indication of this tendency as the Venezuelan President’s discourse began to change. The meeting, held in the Venezuelan state of Zulia, was marked heavily by a stress on unity rather than independence; a position which stands in sharp contrast to the discourse of preceding years.

“Only unity will truly make us independent” stated Chávez during a speech held after signing various accords to strengthen bilateral economic ties between the two nations. When asked about the ascension of President-elect Barack Obama both leaders agreed that Obama’s arrival at the White House could mark the beginning of a new relationship between the U.S. and Latin America.

Yet in the midst of all of this change the nature of Chavez’s Socialist state may itself be coming into question. On February 15 a referendum will be held to vote on whether or not the constitutional limits on re-electing presidents in Venezuela should be removed; a vote which could either end Chávez’s administration or allow him to hold office indefinitely.