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WSJ editorial board member Mary Anastasia O'Grady on what's next for Venezuela and U.S. oil supply after the death of Hugo Chavez.
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You cannot dismiss the importance of Venezuela to the United States is one of the biggest oil exporters to US fourth.
By my recent count.
Venezuela and -- out so with the death of Hugo Chavez what does that mean for us and our energy supply.
Well we have Mary Anastasia O'Grady from the -- wall street journal editorial board member with us in the studio today who's.
-- Venezuela and stick with you -- shot vests over the years of that -- -- is the big question for our purposes at least the financial markets and the economic question of what comes next now on Venezuela.
Well I think getting rid of of which have is with the necessary but not sufficient condition and to -- -- meth menace while.
-- -- -- for fourteen years been putting together a basically military corporate honest government.
Government and that's gonna set that's gonna stay in place in and they don't have fair elections they don't have a free press.
And they don't have a market economy.
And not.
They have a lot of money from oil revenue so there's no reason to think that anything's gonna change in the immediate future.
I'm sorry to be split skirts oil supplies fell significantly when -- daily production was down by I think a million barrels a day.
And do will that improve you think because he did great damage remit the strike where he fired all the oil workers writing great damage to.
They basically the -- infrastructure right anyway he's done is he's basically politicizing -- company so in rating -- a promotion in the all company it's not what you know is an oil and generic it's how low you are as a -- stuff.
But if the guy who's going to be bad president he's currently the vice president he will probably run if they hold the elections like the constitution says they should.
And you'll probably be elected because of the some of the vote and a lot of momentum of the fact that.
You know there's not an environment for fair election anyway.
If he gets into power and stays there.
I think the oil company will continue to decline because he's very ideological.
And he's very close to Cuba so he's going to continue with that model.
The only thing that positive could happen I think is that if it.
If there's a power struggle inside the regime and someone more practical emerges and less ideological for example the guy who's now the president of the national assemble -- right guy by the name ideas out -- cut -- He tends to be more nationalistic.
He served more down on this idea that Cuba should be running -- well -- he wants Venezuela to be you know first and foremost in charge of its south.
And -- and I think if he would be more practical and since he has control the military.
There's a chance that that could happen not I think in the next couple of months but over time and I think that the economy will continue to cook declined.
So they'll -- more pressure for them to do something.
So the next president will be the vice president was majora right that's -- that's the first strata elderly -- -- now.
I think a lot of people of the start to read about it realize what Venezuela does that they basically give free oil way to Cuba so.
That's the thing that image what's that the three -- four billion dollars a year believes what it adds up to depending on the price I guess of what this is so it's.
That could change your saying at some point that could change.
Well my little Cuba has worked very hard to prop my photo op en -- Chavez was sick they brought them to Havana.
They had a big meeting to try to hash out all this in fighting that was going on.
-- but I think that mother though doesn't have the charisma.
And the kind of that ability it is inside the -- -- -- -- kind of president he might I mean I think that there could be a power struggle and if there is I think they'll likely leader that would emerge from that would be this guidance now the president and very quickly does that relationship no change of Venezuelan -- all in terms of the energy and of the oil supplies that they sent in to this country and -- focus again at events happened sic yeah.
I think one thing that's not well understood is that are buying the oil -- menace while it is more important.
Prevent us well then then then -- selling into us in other words.
The idea that they would shut down sales in the US this crazy I mean hold the -- them whole dictatorship depends on on this dollar flout right.
If you aside and said you know what we don't need your oil anymore we can get it from Alberta through the Keystone Pipeline -- become such an important topic it's that there's more pressure on -- well lettuce -- soil -- -- global pool and we can get that oil from anywhere and right now -- supplies those golf poet -- -- -- But we don't have to get the oil from -- well that's the problem more for them than it is for a primary thank you journalist Mary Anastasia O'Grady from below Wall Street Journal.
Thank you so much my.
