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.