Chavez: Venezuela has largest oil reserves in the world


Richard Moore

Perhaps Venezuela will turn out eventually to be more of a
hot spot than Iran. Lots of oil, strong relationship with 
China, and in what Washington considers to be 'its own



Oil & Gas 

Venezuela's Electronic News
Published: Monday, June 27, 2005 
Bylined to: David Coleman 

Venezuela has the largest oil reserves in the world; move over
the Middle East

President Hugo Chavez says Venezuela has the largest oil
reserves in the world and he plans to show the world that
Venezuela's proven oil reserves have been underestimated and
that they easily outweigh previously proven oil deposits in
the Middle East.

Chavez says that Venezuela's estimated 78 billion barrels
together with with an estimated 238 billion barrels of tar oil
in the Orinoco Heavy Oil Belt make it "the largest petroleum
reserves in the world."

Petroleos de Venezuela (PDVSA) says Venezuela's proven oil
reserves have been underestimated since the reserves in the
Orinoco Belt have not previously been included in studies
calculating all the nation's oil reserves.

The eastern Orinoco heavy crude has been marketed by previous
governments as a substitute boiler fuel (Orimulsion) and that
it was not included in conventional oil reserve calculations
since it was originally designed and patented to compete with
coal.  It was for that reason alone that it was not taken up
under established Organization of Petroleum Exporting
Countries (OPEC) production quotas. Now PDVSA plans to include
the Orinoco reserves in Venezuela's conventional oil reserves,
a move that marks a shift in Venezuela's governmental oil

PDVSA says that previous governments had sold Orimulsion at a
fraction of oil prices and then started to mix it with lighter
crude to make it marketable, and consequently must be
recognized as a part of Venezuela's total oil reserves.

Sidelined opposition-faithful industry analysts claim that the
Venezuelan government is intent on increasing Venezuela's
proven reserves to regain negotiating power inside OPEC ...
they continue to deny government figures and say Venezuela is
producing well below its OPEC quota and has no available
output capacity to boost its negotiatory influence with other
members of the oil cartel. 

"Apocalypse Now and the Brave New World"

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