Monday, October 09, 2006

Boycotting one's self bankrupt

Gus Van Horn guest-writes at CAC on calls for an economic boycott of hostile oil-producing countries.

While I strongly sympathize with the desire to boycott Citgo, I doubt that even a successful boycott would have much of a long-term effect on the Chavez regime beyond a temporary reduction of its cash flow while Venezuela looks for other customers. Indeed, Chavez has frequently in the past threatened to cut off oil flow to the United States altogether and already has deals with China – whose rapid economic expansion has helped drive oil prices upward -- to purchase its oil and natural gas. A boycott might do nothing but secure a dependable oil supply for China – while forcing America to find other, possibly more expensive sources of fuel for itself.
Read the whole thing.

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