Chavez vows to expand gas, oil production

Sept. 19, 2007
Venezuelan President Hugo Chavez said his government is "launching the socialist gas revolution," claiming that Venezuela possesses "80% of South America's gas reserves" and "30% of the gas reserves in the Americas."

Eric Watkins
Senior Correspondent

LOS ANGELES, Sept. 19 -- Venezuelan President Hugo Chavez said his government is "launching the socialist gas revolution," claiming that Venezuela possesses "80% of South America's gas reserves" and "30% of the gas reserves in the Americas."

He said Sept. 16 that his administration would invest $18 billion to expand natural gas production to 11 bcfd over the next 5 years from 7 bcfd.

Touting his country's assets, Chavez said Venezuela has proved gas reserves of 150 tcf onshore and 30 tcf offshore.

Meanwhile, the Venezuelan leader said his government also plans to increase the country's production of crude oil to "5 million b/d in 2012," up from the current 3.2 million b/d.

"We'll take it there on pace with prices because for us it's more important to maintain the correct price of oil than to flood the market," said Chavez, who added that the world is entering an energy crisis because "oil is running out."

Contact Eric Watkins at [email protected].