In Venezuela, gasoline is 6.3 cents per gallon. Six new Hummer dealerships are opening in the country in early 2008. They also use oil to generate electricity. A third of V's oil production is consumed domestically (at 6 cents/gallon, obviously production costs are subsidized) or given away to other countries, such as Cuba, in exchange for skilled medical professionals. (Did you know that Cuba has a highly effective state-funded education system?)

The rest of V's oil production is mainly sold to the U.S. So Chavez can't hate us too much, hmm? Here's why: The rig count in Venezuela is not sufficient and production volumes are dwindling. There is a global shortage of oil rigs due to demand, but also, because Chavez was such an a-hole to the multinational oil companies (like Chevron), contractors don't want to pursue opportunities on Venezuelan soil. Too much political risk, and taxes are too high. So I think Your Highness is going to make some compromises, eventually.

addendum: Gasoline in producing countries is usually dirt cheap (same situation in the Middle East). It's causing problems for the long-term because conservation is not even a blip on the radar, and if consumption continues at high rates, the imminent scarcity of cheaply available oil is going to hurt all of us.