Chavez- at it again

[Xiahou]

Here's some more info .

"For the market this means that the probability of Exxon winning an arbitration against PdVSA is high," said Alberto Ramos, an analyst with Goldman Sachs in New York.

PdVSA claims to produce 3.2 million barrels of crude a day, but the Organization of Petroleum Exporting Countries and other industry associations put its production closer to 2.4 million barrels a day.

PdVSA officials claim the company is on track to raise production, but its latest moves appear to reflect concern about its production capacity.

In recent days PdVSA has struck new agreements with Total, Statoil and Royal Dutch Shell PLC (RDSA) in a bid to expand production in mature fields across the country. Still, PdVSA has problems with aging oil infrastructure, and continues to struggle to secure needed oil rigs.

Yup, sounds like they're in great shape.

And you've got to love Chavez's response:

"Exxon Mobil is an imperialist bandit," Chavez said Sunday during his radio and television show. "If (Exxon) really freezes us...if you hurt us...We won't send any oil to the United States."

Yes, that's right- he's taking the spoiled brat approach- threatening to take his ball and go home.
Too bad for him that he can't make good on the threat:

Few believe the president will cut off the Andean country's main business partner, especially since most of the refineries outside Venezuela capable of processing its extra-heavy crude are located on U.S. soil.

Tribes may believe that Chavez is going to ship his crude to the US for it to be refined, load it back onto tankers, ship it back to South America, pump it across pipelines, load it back onto tankers, and ship it to Asia- but most people (including those who actually know the industry) realize that's completely unworkable.