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Posts tagged “Citgo”

By Robert Rapier on May 16, 2009 with no responses

Venezuela’s Slide Continues

At this point, you have to wonder who in their right mind will ever do business in Venezuela again as long as Chavez is in power. The risk that Chavez will steal your property is simply too great. During his administration, Chavez has seized phone companies, electric utilities, private real estate (just this week he ordered seizure of a private shopping mall), oil field investments, mines, steel plants, food processing plants, farms, (shades of Mugabe) and cement plants – to name a few. Now this week he has stolen the assets of oil field services companies: Venezuela Seen Paying Price for Chavez Expropriation of Oil Contractors In the wake of the seizure of foreign and domestic oil service companies and… Continue»

By Robert Rapier on Jan 7, 2009 with no responses

I’m in the Wrong Business

Update: As Maury pointed out in the comments, Chavez has reconsidered: Venezuelan-owned Citgo Petroleum, which had earlier indicated it might end a home heating oil assistance program for low-income Americans, yesterday said it had decided to continue the program. Joseph P. Kennedy II, chairman of Citizens Energy, said yesterday that the renewal of the program was evidence of Venezuelan President Hugo Chávez’s “genuine concern for the most vulnerable, regardless of where they may live.” Does that mean that he was no longer concerned for those people when he cancelled the program? With comments like that, Joe Kennedy’s $400,000 salary won’t be in jeopardy. —————————— You may have seen the recent announcement that Hugo Chavez is cutting off the free heating… Continue»

By Robert Rapier on Apr 2, 2008 with no responses

Attempting the Impossible

I ran across the following today: Our view on gasoline prices: With crude at $100 a barrel, Big Oil needs no tax breaks It’s difficult — make that impossible — to justify taxpayer subsidies for an industry whose top five companies made $123 billion in profits last year. Oil at $100 a barrel ought to be plenty of incentive to drill without extra encouragement from taxpayers. OK, sounds like a challenge. I will accept. First off, does it matter how much capital is being invested to make those returns? What if the required investments are 10 times that $123 billion? What if another industry – like say Hollywood studios – makes much higher profit margins, yet qualifies for exactly the… Continue»

By Robert Rapier on Feb 8, 2008 with no responses

Exxon Freezes Venezuelan Assets

This came as a surprise to me: Exxon wins freeze on $12 billion of Venezuelan assets NEW YORK (Reuters) – Exxon Mobil Corp has won court orders freezing up to $12 billion in Venezuelan assets around the world as it fights for compensation for operations lost to President Hugo Chavez’s nationalization drive. The largest U.S. company sought the asset freeze to guarantee repayment should it win arbitration over the Cerro Negro heavy oil project. The move is the boldest challenge yet by an international oil major against any of the governments around the world that have moved to increase their holds on natural resources as energy and commodity prices have soared. “To me it sounds like a very aggressive tactic,”… Continue»

By Robert Rapier on Jan 18, 2008 with no responses

Chavez Had Me Fooled

It seems I have been wrong about Hugo Chavez. I had thought the man didn’t have a clue about the oil business. While companies like ConocoPhillips were pulling in $15.5 billion profits*, they were investing $15.3 billion back into the business. Chavez, on the other hand, was siphoning off the profits of the national oil company of Venezuela, PDVSA, and spreading them among the public in support of his socialist platform. (Shame on those who complain about food shortages). Some, like me, probably thought “A few years of this, and he won’t have any oil profits to spread among the public.” How little I understood of his master plan. You see, at first glance it does seem like his strategy… Continue»

By Robert Rapier on Jul 2, 2007 with no responses

Expropriating Venezuela’s Refineries

You heard it here first. Two months ago, I wrote Let’s Confiscate Venezuela’s U.S. Refineries. Looks like I may not have been too far off the mark, as others have started thinking along the same lines: Citgo assets may be at risk in arbitration: Experts say ConocoPhillips, Exxon Mobil could seek Venezuela’s refineries in U.S. Maybe those “experts” have been reading my blog. Here are some excerpts: ConocoPhillips and Exxon Mobil Corp. could hold a powerful card to make Venezuelan President Hugo Chavez bet his country’s sizable American assets in the high-stakes nationalization of the Venezuelan oil industry, experts say. The Citgo subsidiary of Venezuela’s national oil company has five refineries in the U.S. experts say could be targeted for… Continue»

By Robert Rapier on May 7, 2007 with no responses

Let’s Confiscate Venezuela’s U.S. Refineries

I recall reading this story a while back: Chavez Considers Sale of U.S. Refineries The implications just sank in today. Chavez, having confiscated the property of U.S. companies and torn up contracts, has property here in the U.S. Why don’t we just confiscate Venezuela’s Citgo refineries as compensation, or make them sell the refineries for half price? Isn’t turnabout fair play? From the article above: “Not one Venezuelan works at these refineries,” Chavez said in Buenos Aires yesterday, according to Venezuela’s Communication and Information Ministry. “They don’t give us one cent of profit. They don’t pay taxes in Venezuela. This is economic imperialism.” Citgo Petroleum Corp., the U.S. fuel-making unit of Petroleos de Venezuela, owns four U.S. oil refineries and… Continue»