Venezuela may have just become the center of an energy-starved world.
The Orinoco Belt, situated squarely underneath the South American nation, may hold some 513 billion barrels of crude oil, according to a new report by the U.S. Geological Survey (USGS).
That's twice the size of Saudi Arabia's oil reserves, placing Venezuela firmly atop the list of oil-rich nations.
The timing of the USGS announcement is striking. On Jan. 28, international firms will take part in an auction for contracts to drill in the Orinoco Belt. The deadline for auction registration was Jan 18, according to industry publication Petroleum World. Results will be announced on Feb. 10.
However, the USGS did not make an estimate of how much oil is actually recoverable. The Orinoco Belt's reserves are typically thick and tar-like, with some patches difficult to reach with current drilling technology.
The announcement is likely to cause waves in Venezuela's political circles, where oil diplomacy has been a key to the country's global outreach. That the estimate comes from a U.S. firm is also likely to sharpen President Chavez's rhetoric, which has in recent months repeatedly decried U.S. military presence in neighboring Colombia.
As recently as November, 2009, Chavez warned Venezuelans to "prepare for war" with the United States and Colombia, arguing that rapidly expanding defense spending was prudent in the face of such a perceived threat. The U.S. State Department claimed its agreement, settled in August, allows U.S. soldiers to operate drone aircraft from Colombian military bases as a way of prosecuting the drug war.
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USGS claims Venezuela sits on Earth's largest oil reserves - (Jan 23, 2010)
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