December 30, 2004
India Daily
Venezuelan President Hugo Chavez gave access rights to Chinese oil companies. This is the first official tilt towards the Chinese to move away from the American influence.
Venezuelan President Hugo Chavez says Chinese oil and gas companies will be assured access to contracts in Venezuela ranging from exploration and production of crude oil and gas, to the construction of refineries and petrochemical plants.
China‚s thrust for oil and emergence as a major power in the world is making Chavez look more confident of his power and influence.
Chinese strategy is to keep Chavez happy and then bring in the influence of BRIC (Brazil, Russia, India and China). Sharing Venezuelan oil with India and Brazil may be another strategic move by the Chinese.
India‚s growing special relationship with America may not make it worthwhile to participate in Chinese scheme. India plans to play the card of keeping China in a tense position globally to keep control over Pakistan‚s moves on Kashmir and other matters.
America is silent at this time and is watching China-Venezuela move closely. American companies are still very well in position to take advantage of Venezuelan oil.
Strategically, Chavez like to do anything possible that can be perceived as anti-American. But the Chinese does not look it that way. They like to make sure that America is still open for selling manufactured Chinese goods and have free access to oil reserves anywhere in the world.
The geopolitical map being drawn in Venezuela eventually may end up in a cold war type confrontation between China and the West. It will be interesting to see how BRIC plays it specially Brazil and India closely allied to America.
It also is likely that Spanish, Russian, French, Indian and Middle Eastern energy companies will be favored players in the future expansion of Venezuela's oil and gas industries. Chavez has invited companies from these countries to invest in Venezuela's energy sector during frequent foreign trips over the past year. However, China is by far the most strategically important player in Chavez's grand scheme to expand Venezuela's oil and gas industries while simultaneously diminishing its bilateral energy relations with the United States. This is because China's growing thirst for energy eclipses demand in all other countries except the United States.
India may finally join the bandwagon in Venezuela. India will try to maintain a fine line between taking advantage of all the available oil resources without alienating American industrial interests.
http://www.indiadaily.com/editorial/12-30-04.asp