I say we should accept his offer of oil at a reduced price- but instead of using it, turn around and resell it at higher prices
Maybe use it to fill our reserves to capaity, thats about all we can do with it. If chavez causes a glut he cuts his own throat by causing oil prices to fall.
The reality of Chevez's oil is almost all of it is processed here in the USA. The only refineries capable of processing that thick, low grade tar are on US soil, Or up in Alberta, where they are already running at full capacity. Chavez is screwed should those refineries shut down for an extended period of time for "enviro-mental green house gas upgrading".
We have lots of options available to force Chavez's hand.