Venezuela Takes Control of Oil Fields

[Isuzoom]

gagamitin lang ni el loco hugo chavez ang oil para ma hostage not only the U.S. but also the world market....pareng George...attack na!!!

[mazdamazda]

Tsk, tsk, tsk...

Chavez threatens to nationalize banks
By JORGE RUEDA Associated Press Writer
Article Launched: 05/03/2007 12:41:19 PM PDT

CARACAS, Venezuela- Venezuelan President Hugo Chavez on Thursday warned he would nationalize the country's banks and largest steel producer if they persist with what he described as unscrupulous practices.

Chavez's threat did not seem to signal an imminent takeover but rather appeared aimed at strong-arming the businesses to contribute more to local industry as he made a wide-ranging speech promising that Venezuela was headed for a classless society. Coming alongside recent moves to nationalize telecommunications, electricity companies and the oil sector, the warning was yet another sign that Chavez is serious about deepening his socialist revolution.

"Private banks have to give priority to financing the industrial sectors of Venezuela at low cost," Chavez said. "If banks don't agree with this, it's better that they go, that they turn over the banks to me, that we nationalize them and get all the banks to work for the development of the country and not to speculate and produce huge profits."

It was unclear if Chavez was referring only to Venezuelan banks including Mercantil Servicios Financieros CA and Banco Provincial SA, or also major international banks with subsidiaries in the country, such as New York-based Citigroup Inc. and Spain's Banco Bilbao Vizcaya Argentaria SA and Banco Santander Central Hispano SA.

Chavez also warned the government could take over steel producer Sidor, which is majority controlled by Luxembourg-based Ternium SA. Ternium's U.S.-traded shares closed down nearly 3.9 percent at $26.15 (19.21 euros) Thursday on the New York Stock Exchange.

Sidor "has created a monopoly" and sold the bulk of its production overseas, forcing local producers to import pipes from elsewhere, Chavez said.

"If the company Sidor ... does not immediately agree to change this process, they will force me to nationalize it," Chavez said, arguing the company should be giving priority to supplying national industries.

"I prefer not to," Chavez added, as he ordered Mining Minister Jose Khan to immediately head over to Sidor's headquarters and come back with a recommendation in 24 hours.

Sidor and banks did not respond to requests for comment.

"I don't think it'll happen immediately, they're just threats. I don't think it's possible to carry them out for now," said Franklin Rojas, director of Caracas-based economic institute CIECA.

Rojas noted that Chavez would likely run up against his close ally, Argentine President Nestor Kirchner, if he tried to nationalize Sidor. Sidor's parent company, Ternium, is controlled by a major Argentine conglomerate, Techint Group.

Chavez made the announcements in a televised speech, urging Venezuelans to cast aside materialism and recalling independence hero Simon Bolivar as he said the country must close the gap between rich and poor

"Bolivar said that one day in Venezuela there will be one single class," Chavez said. "That's where we're headed... equality, justice."

Chavez initiated a nationalization drive in January to impose state control over "strategic" companies. His government took over multibillion-dollar oil operations from major foreign oil companies this week and announced earlier Thursday that it would not be paying cash compensation to them.

"We do not expect to pay out money in order to arrive at some arrangement with the companies," said Oil Minister Rafael Ramirez, according to a transcript of an interview with state TV.

Ramirez did not elaborate on how else the government might compensate BP PLC, ConocoPhillips, Exxon Mobil Corp., Chevron Corp., France's Total SA and Norway's Statoil ASA, which have invested more than $17 billion in the projects.

Ramirez also said one of the companies, Houston-based ConocoPhillips, would be expelled from the country and barred from staying on as a minority partner in a state-run joint venture if it continues to resist the state takeover. The company is the only one that has not signed an agreement in principle recognizing state control.

"I'm not deceiving anyone," Chavez said. "I'm only governing the country, and the country has elected me various times. ... All of those who voted for me backed socialism, and that is where we are heading."

[uls]

Pat Robertson may not be so crazy after all when he said the US should assassinate Chavez
http://www.usatoday.com/news/nation/...bertson-_x.htm

But after a lot of criticism, Robertson apologized a couple of days later
http://www.cnn.com/2005/US/08/24/robertson.chavez/

Robertson should have been president hehehe

[niky]

Robertson is a raving lunatic... of course, so is Chavez.

Putting all of those businesses under government control is madness.

If a business isn't forced to be globally competitive, and has no one to answer to but its own internal bureacracy (hello, PNCC?), it becomes sloppy, ineffective, and service really, REALLY suffers.

It's great if you want to give the government more power and more money... but not great if you want to give power to the people.

RE: Putin... he's actually a cunning one... he hedged the surplus Russia got from high prices into a reserve fund, in anticipation of low oil prices in the future. He hasn't been spending like a kid in a candy store like some others started doing when oil peaked last year.

[empy]

duh?!?

I was reacting to Mazdamazda's post -



As such, if I were in his (Chavez) shoes, I MIGHT do the same....IF THE MOVE WILL SERVE THE INTEREST OF MY COUNTRY MEN.

Mahirap humusga ng tao (like Hugo Chavez) o desisyon ng isang tao kung wala naman tayo sa lugar niya (unless venezuelan ka o tayo) di ba?!?

Kasi kung news lang naman ang pagbabasihan natin, ang tanong ko ay ano ba ang accuracy ng news na yan?

What if his intension was to make sure that his fellowmen doesn't experience future fuel problem?!?

AFAIK, stupidity nga ang pagboycott ng kalaban niya... pero come to think of it, what if this opposition was the more evil group?!? eh di buti nalang hindi sila sumali or lumaban kay chavez. But that is another topic...

i know dude.

1. some people including m2 say that the move is stupid
2. you said "karapatan nya yan, siya presidente eh"
3. sagot ko "of course karapatan nya yan, but it's probably not in his country's best interest"

tama naman diba?

time will tell whether this was a good move or not. but history, for those who care to do research, has shown that forced nationalization is generally a bad idea.

[GasJunkie]

sinopec




:spider:


edit oligopoly > monopoly :yar:

[uls]

Chavez also wants Venezuela to quit the IMF.

So if Venezuela quits the IMF, it's gonna default on loans.

That sends investors into panic mode.

Like this: http://www.bloomberg.com/apps/news?p...JMg&refer=news

galeng galeng talaga ni Chavez.

[GasJunkie]

He already paid off all his loans.



:fly:


Edit google is also my friend.

[creepy]

I think there are too many people commenting here in this thread pretending to be "concerned" (ahem) about the impact of Chavez's actions (nationalization) on Venezuela.

C'mon... stop pretending that your critiques are NOT because you're concerned that a country hostile to your own is controlling more of its own oil.

[creepy]

If foreign journalists and other countries can critic the Philippines - why can't we do the same to Venezuela? This is a global interest and not just a "national" issue confined to Venezuela since Chavez started using the OPEC to artificially jack up the price of oil.

As to the accuracy of the news, what is "accurate" for you? Several news agencies printed the same news with the same quotes blurted out by Chavez in a neutral fashion. This isn't something taken from the Dear Xerex section of local tabloid.

He made his intentions clear that this move was to hurt the USA.

Future fuel problem? With Venezuela's ridiculously low gasoline prices? I don't think so. Heck, without the investment & technical know-how of the *imperialist* multinational corporations, they wouldn't be able to turn their tar-like oil to something useful.

He is just saving time by using oil to fund his distorted social programs & economic policies. He maybe popular with the poor right now but once the cash flow dries up - he'll be ousted in no time.

If you have been following world events for a while, the Venezuelan opposition is a moderate group while Chavez and his cohorts are on the extreme left.

Cool ka lang... huwag mainit ang ulo.

Btw, I think you're wrong.

[GasJunkie]

^^^^^^^^


major major :drool:




:fly:



edit hold the fort will be back after class.

[niky]

I think there are too many people commenting here in this thread pretending to be "concerned" (ahem) about the impact of Chavez's actions (nationalization) on Venezuela.

C'mon... stop pretending that your critiques are NOT because you're concerned that a country hostile to your own is controlling more of its own oil.

Uhmm... I can't recall a single post here saying "ooooh, those poor Venezuelans... we must help them..."

I don't think you need to start flame-baiting... we can have a perfectly civil political argument/discussion right here.

Read up on Hugo Chavez, his history, and his previous decisions and policies...

Much of what he does is motivated by politcal posturing and dramatic flamboyance... not as a coherent and logical system of economic reforms.

This is of concern to everyone simply because he has such a large influence on the global economy and politics.

And, yes, the move is potentially bad for the people of Venezuela, as the national oil company doesn't have the cash to invest in new developments. It's within his rights to nationalize, but the national oil company is strained to the breaking point by having to pay for all of his programs... amongst the major players, they're the only ones to post a net loss last year, when everyone was reaping the benefits of high oil prices.

-----

Let's put it this way... would you be happy if the entire highway system of the Philippines was placed under the control of the PNCC?

Or if we were all still using PLDT? I still remembered the days when you'd have to wait ten to twenty years for a new phone.

It was only when PLDT was forced to fight for its share of the telecommunications market that they started showing signs of life. Service is so much better now that PLDT has to be competitive to keep its customers.

State-controlled monopolies are hardly ever effective, especially, as in the case of Venezuela's national oil concern, if it becomes highly politicized.

[oldblue]

I think there are too many people commenting here in this thread pretending to be "concerned" (ahem) about the impact of Chavez's actions (nationalization) on Venezuela.

C'mon... stop pretending that your critiques are NOT because you're concerned that a country hostile to your own is controlling more of its own oil.

ang Ok kasi sa U.S. they share the wealth even if they get the lion's share.

pero this Chavez guy, gusto nya sarilihin lahat eh. like the Middle East and other oil-producing nations, we all owe it to the U.S. kaya nagkaroon ng balance ang mundo.

if the middle east had their way, we are all at their mercy, kasi hindi tatakbo ang world industries kung ang presyo ng gasolina eh ginto.


i really dont care if the US is hoarding their own oil resources. they deserve imho, bec. they are the world's last line of defense. someone has to takeover to police the entire world. and i'm grateful that that someone is mature enough to respect each and every race in the world bec. they are for balance.

[wildthing]

On the contrary to popular belief, forced control on a nation not that all bad... LOOK AT SINGAPORE.

This one tight-ass-controlled nation... and yet economy is good.

I'd say depende yan sa nagpapatakbo... and we can not pre-judge anybody unless we are really in that position/area ... have you been to that country?!?

I haven't gone to their country, so my stand is to still give Chavez a benefit of the doubt on his intensions.

[GasJunkie]

ang Ok kasi sa U.S. they share the wealth even if they get the lion's share.

pero this Chavez guy, gusto nya sarilihin lahat eh. like the Middle East and other oil-producing nations, we all owe it to the U.S. kaya nagkaroon ng balance ang mundo.

if the middle east had their way, we are all at their mercy, kasi hindi tatakbo ang world industries kung ang presyo ng gasolina eh ginto.


i really dont care if the US is hoarding their own oil resources. they deserve imho, bec. they are the world's last line of defense. someone has to takeover to police the entire world. and i'm grateful that that someone is mature enough to respect each and every race in the world bec. they are for balance.

I'm glad everyone's NOT like you.




:fly:

[GasJunkie]

On the contrary to popular belief, forced control on a nation not that all bad... LOOK AT SINGAPORE.

This one tight-ass-controlled nation... and yet economy is good.

I'd say depende yan sa nagpapatakbo... and we can not pre-judge anybody unless we are really in that position/area ... have you been to that country?!?

I haven't gone to their country, so my stand is to still give Chavez a benefit of the doubt on his intensions.

qft



:fly:

[niky]

On the contrary to popular belief, forced control on a nation not that all bad... LOOK AT SINGAPORE.

This one tight-ass-controlled nation... and yet economy is good.

I'd say depende yan sa nagpapatakbo... and we can not pre-judge anybody unless we are really in that position/area ... have you been to that country?!?

I haven't gone to their country, so my stand is to still give Chavez a benefit of the doubt on his intensions.

Tightly controlled =/= government monopoly. Singapore is still a free capitalist economy, but strictly regulated.

[GasJunkie]

Some just tighter than most.

[empy]

wildthing, i agree that forced control or benevolent dictatorship is not always a bad thing. but that's not what i'm saying. through this plan, Chavez is in essence grabbing billions of dollars in investment and future cash flows away from the investors. that is a huge impact to their standing in the world market...already their stock index is down 20%.

depende nga sa nagpapatakbo. i encourage you to look at the track record of the currently state-run industries in Venezuela to see what they can expect. (hint: it's not good)

I think there are too many people commenting here in this thread pretending to be "concerned" (ahem) about the impact of Chavez's actions (nationalization) on Venezuela.

C'mon... stop pretending that your critiques are NOT because you're concerned that a country hostile to your own is controlling more of its own oil.

i guess this comment is directed at me because i'm the only US based tsikoteer who's posted in this thread (other than Karding who commented on something specific on the article that was unrelated). good to see that you've graduated from making snide comments about George Bush in every US related thread to something equally as "productive" (ahem)

i do think Chavez is a threat to the US. but ironically, he needs Georgie just as much as George needs him. Chavez is in power because he spends a lot of his oil revenue to artificially increase the wages of the poor (so they vote for him), and most of those oil dollars come from the US.

again, all i'm saying is that if Chavez is taking this action then he is making his country very unattractive to foreign investment. his state-run industries have a very poor record of performance. there are advantages to having more control over an extremely strategic asset but only time will tell if this will be a good move.

you may think that my posts have an ulterior motive, but then again i really don't give a sh!t what you think.

[oldblue]

I'm glad everyone's NOT like you.




:fly:

oh everyone's a lot like me bec. we love USA!!!