Chavez’s Health and Implications for Chinese Investment

For those of you keeping up with the much-discussed energy deal between China and Russia, you know the many reasons, both geographic and political, why it's unlikely to pan out. The geopolitically savvy folks over at STRATFOR told us about it a couple of weeks ago, and have moved their forecasting on to an existing energy relationship, between China and Venezuela—now potentially uncertain due to Hugo Chavez's precarious position in a Cuban hospital.

Whether Chavez gets better or not, a political transition is down the line somewhere, and China could lose its current preferential treatment as primary investor in Venezuelan oil. This is the kind of thing we have to know about as investors. Yes, we all know that Chavez is ill. But what, if anything, does that mean for the South American energy sector? What about the future of oil, China, the U.S., and so on? This is the kind of forward-looking analysis you get from a news publication like STRATFOR. It doesn't get any better than these guys.

Enjoy this complimentary piece from them. If you're interested in more, watch their video on the  <<Venezuelan oil industry here>>, and then take advantage of their special discount for OTB readers. I read them every day, and highly recommend you check out their subscription offer.

John Mauldin, Editor
Outside the Box

subscribers@mauldineconomics.com

---

Chavez's Health and Implications for Chinese Investment

June 29, 2011 | 1904 GMT

MINORU IWASAKI-Pool/Getty Images
Venezuelan President Hugo Chavez (L) and Chinese President Hu Jintao

Summary

The absence of Venezuelan President Hugo Chavez due to health reasons has caused uncertainty about Venezuela’s future,…