The last estimates put cracking a barrel of Venezuelan oil around 70 dollars. Chavez spending was based on $140 oil. His production is down 40% since the big oil nationalizations. His oil income is IMO only 1/20th of what he was projecting just two years ago.

The Chinese are or have built some cracking units for this oil, so Chavez might do a little better in the future profitwise but he has all ready borrowed the money (and most assuredly hid it and/or spent it too).

Chavez did not care about his gold @ 1000 when oil was @ 140 and was ready to let us croak, but now the gold is his best bet. World economy will not need (or people will not be able to afford) oil for at least 3 years IMO, as the stimilous plans have run out of gas (so to speak).