Monday, 4 October 2010

Chavez understands Peak Oil

Whether you like him or not, Hugo Chavez is still in control of Venezueala, even after the latest election. Moreso, he appears to really understand Peak Oil, which is one of the reasons he appears to be hanging onto Venezuelan oil.

Real News reports:

The mistake Chavez did? Buying all-in to the Peak oil in 2008 and thinking that no other reason except constant demand fall could factor for the high prices.

Well, come 2008, financial crisis, reduction of the speculative and hedging positions in the oil markets as well as abrupt reduction in demand, and the price plunged.

Lesson? Even if you discount the future, don't discount it too deeply too soon.