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New York, September 20, 2005—Venezuela is now the key to satisfying America's oil habit; by some measures, this volatile Latin American nation has surpassed Canada and Saudi Arabia to become America's leading foreign source of crude. All of which is helping fiery socialist president Hugo Chavez challenge Big Oil. He's hiking taxes and royalties on the international giants, even as he strengthens the hand of OPEC and state-owned energy companies around the world. What's more, he has threatened to shut the spigot if the Bush Administration challenges his grip on power in Caracas.

In a rare interview with FORTUNE, Chavez, who was in New York for the U.N. General Assembly, spoke about these and other issues. Some highlights:

On whether he is a threat to the U.S.:
"No. We're not any threat to the U.S. Our company here, Citgo, offers services to millions of people in the U.S. every day. We've given jobs to thousands of Americans."

On whether the U.S. would invade Venezuela to remove him from power:
"Without any doubt, because we know who's in the White House, and he's capable of absolutely anything. The government of Mr. Bush has converted the U.S. into a terrorist state. Nevertheless, we have a lot of faith, and we're working hard to impede any kind of greater conflict."

On whether he would shut off the flow of oil to the U.S.:
"Yes, it could happen if there was direct aggression against Venezuela. If that happened, then of course there wouldn't be any Venezuelan oil sent to the U.S. Possibly not to anybody. If Venezuela's production were affected, I'm sure oil could rise above $100 a barrel."

On why he calls President Bush "Mr. Danger:"
"It's a reference from a wonderful Venezuelan novel. There's a character named Mr. Danger. In reality, the U.S. President is a threat to the world—and his own people, too. Take a look at Katrina. He was on vacation—he appeared four or five days later. He couldn't even offer a glass of water, bread, or medicine to so many dying people. He's a threat, Mr. Danger."

For further information please contact:
Susan Brown Williams
212-522-0133
susan_williams@timeinc.com

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