The beast that refuses to be slain roared again last week. This time it was in the guise of Hugo Chavez, the newly reelected President of Venezuela. And like his heroes of old, Mr. Chavez promised his people the worn out panacea of "socialism or death."

Given the duration of his speech, many of them surely would have chosen death. Like his long-winded socialist counterparts, let's just say he spoke at length.

Over 165 minutes later, one thing was perfectly clear to those who managed to stay awake long enough to hear it all-Venezuela is turning hard to the left. The fundamental aim of his next term, he said, will be "to build Venezuelan socialism."

Following his speech, Chavez wasted no time making good on his utopian promises.

On Monday he revealed that he would renationalize the formerly state-owned telecommunications company CANTV as well all of the electricity companies in private hands. Going even further, he also hinted that he would nationalize the Orinoco oil fields, which could be worth as much as $5 billion each.

But those ambitious plans to nationalize the oil-rich Orinoco projects could ultimately end up impeding investment and hindering production, according to the International Energy Agency (IEA).

At a congressional hearing on Wednesday, IEA chief economist Fatih Birol told reporters, "It may well be the case that Venezuela may have difficulties getting enough investment to increase the production capacity as much as the markets asks Venezuela to do. There may be limitations in terms of capacity due to lack of investments."

And with that statement, the grand designs of Chavez's socialist utopia were shown to be threadbare. Because while Chavez can strong-arm his own people into his socialist nightmare, he can't force the world's private enterprises to help him pump his precious oil without a profit. And without those profits, those fields will surely fall short of their projections.

The answer to this problem is abundantly clear.

It's called the free market, and unlike its socialist counterpart, it works like a charm. It's not to be feared, as Chavez claims, but embraced-especially if your goal is to maximize your oil production.

To see the abundance of oil that capitalism can ultimately produce, maybe Mr. Chavez ought to take look at what's going on in Iraq. In that troubled country, it's not nationalization that is all the rage but its polar opposite-privatization.

That would be an equally stunning reversal for the Iraqi people. In fact, the 33-page draft Oil and Gas Law that has been made public would ultimately end three decades of total government control over the industry.

If passed by the new Iraqi Parliament, the new law would throw open the potentially mammoth oil industry to competition by foreign oil companies. Under the proposed legislation, oil and gas companies willing to brave the dangerous situation there could earn as much as 75% of the profit until they have recouped their startup costs.

After that, the companies would be allowed to book 20% of the revenues as profit under 20-year contracts. The remaining revenues would ultimately end up in the hands of the Iraqis, split up among the people in a contentious revenue sharing plan.

But regardless of the final shape of the new plan, privitization is indeed the best answer to rebuilding an Iraqi oil industry devastated by decades of wars and sanctions. The country sits atop 115 billion barrels of oil reserves and currently pumps about 2 million barrels a day. According to estimates, a $20 billion private investment in the industry could yield as much as 4.5 million barrels a day, since the bulk of the oil is simple to get to and easy to pump.

If passed, the new law offers a completely different path for the Middle Eastern nation and its people. It's one in which market forces-not central planning-deliver abundance. But they can do so only if given the chance to earn a profit.

This is the path that has been vilified and scorned by Mr. Chavez and his socialist minions.

In a speech to the Venezuelan congress on Saturday, Chavez warned the private companies-BP, Exxon, Chevron, ConocoPhillips, Total SA and Statoil ASA-once again that their days are numbered. Explaining his new program further, he could offer them only the vague and slippery notion of becoming minority partners.

"He who wants to stay on as our partner, we'll leave open the possibility to him. He who doesn't want to stay on as minority partner, hand over the oil field and goodbye," he said.

"Goodbye, good luck and thank you very much," Chavez added, bidding those who will refuse his offer a fond adieu.

But the truth is, it's Mr. Chavez who will need all the luck in the world. His turn towards socialism will likely fail, like all of the rest. Profits deliver in ways that ideology cannot.

You can look it up.

Wishing you happiness, health, and wealth,

Steve Christ, Editor