This report examines the political and economic situation in Venezuela and U.S.-Venezuelan relations. It is divided into three main sections -- political background, current political and economic environment, U.S. relations and policy -- and also includes introductory and outlook information.

This report provides an in depth look at political and economic conditions in Venezuela and examines their impact on U.S. policy.

This report discusses the current Congressional issues in relation to Venezuela, including background on the political situation and recent developments, the economic conditions, relevant U.S. policies, and the legislative initiatives in the 111th and 112th Congresses. The United States traditionally has had close relations with Venezuela, a major supplier of foreign oil, but there has been friction in relations under the government of populist President Hugo Chávez. U.S. officials have expressed concerns about human rights, Venezuela's military arms purchases, its relations with Cuba and Iran, and its efforts to export its brand of populism to other Latin American countries.

Demand patterns for world oil and oil products show significant diversity by country, region, and product groupings. As a result of this diversity it is not possible to attach blame for the current level of price to any one nation, region, or product segment. The view that the oil market is international in scope and tightly interrelated is enhanced by the demand data. As a result of the integrated nature of the world oil market it is unlikely that any one nation acting on its own can implement policies that isolate its market from broader price behavior. As new major oil importers, notably China, and potentially India, expand their demand, the oil market likely will have to expand production capacity. This promises to increase the world’s dependence on the Persian Gulf members of the Organization of Petroleum Exporting Countries, especially Saudi Arabia, and maintain upward pressure on price.

This report discusses President Bush's 2003 requests for new funding and additional authority to provide assistance to Colombia and six regional neighbors in a continuation of the Andean Regional Initiative (ARI) launched in 2001.