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Posts tagged “Hugo Chavez”

By Robert Rapier on Feb 13, 2008 with no responses

Chavez Targets "Big Milk"

After threat to cut off oil, Chavez says Venezuela may expropriate milk plants CARACAS, Venezuela: President Hugo Chavez warned that some milk plants may be expropriated to ease shortages, singling out Italy’s Parmalat SpA and Switzerland’s Nestle SA. Chavez mentioned the two companies during his weekly program Sunday, saying international companies sometimes “pressure” Venezuelan farmers to obtain their milk for export. “It’s no use for us to be setting up plants (if) then there is no milk for the plants because Parmalat or … Nestle take it all away,” Chavez said. “That’s where I say this government has to tighten the screws.” If companies ensure a supply through “blackmail, offering money up front” while leaving state-run plants without enough milk,… 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 Feb 6, 2008 with no responses

Brother, Can You Spare Chavez a Billion?

Now that Chavez has run Venezuela’s oil production into the ground and needs a new cash infusion for his social programs, he is inviting oil companies back in to make investments: Venezuela seeks oil investment after 2007 crusade CARACAS (Reuters) – Less than a year after Venezuelan President Hugo Chavez launched a nationalization crusade, the OPEC nation is boosting efforts to bring in private oil investment amid growing energy-sector problems. State oil company PDVSA may be seeking to stem growing cash flow and operational problems, only months after a wave of nationalizations that drove out two of the world’s biggest energy companies. I don’t know about you, but he seems a trustworthy sort. I would invest a few billion there…. 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 Sep 19, 2007 with no responses

More Fun in Venezuela

Here’s what can happen if you neglect to feed your cash cow: Former Pdvsa CEO shows concern about production level Luis Giusti, former CEO of Venezuelan state-run oil firm Pdvsa, said the statements made by the former Chairman of the Federal Reserve Alan Greenspan about the Venezuelan oil industry confirm his view that Pdvsa oil production has collapsed. “The industry is faced with a process of drastic deterioration. I wish people only thought what the collapse of Venezuelan production means. This is dramatic. Pdvsa has dropped 2 million bpd,” said Giusti. He told local Unión Radio that it was “impossible” to accomplish Venezuelan President Hugo Chávez’ plans to take domestic oil output to 5 million bpd by 2011. According to… Continue»

By Robert Rapier on Sep 7, 2007 with no responses

The Week in Energy – September 7, 2007

Note: This will be my last time to post in this format (a block of stories in one post). Others have commented, and I agree, that this is a bit unwieldly. Besides that, I have been sitting on some of these stories for nearly a week. Also, it is taking me more time to link up and format these stories than if I just posted them one at a time as they pop up. By staying out of the comments section and taking my e-mail address offline, I have freed up a lot of the time that I had lost. So, I am just going to post things as I always have, but I still won’t be commenting. Sometimes that… Continue»

By Robert Rapier on Jul 22, 2007 with no responses

Venezuela’s Production Difficulties

I think this speaks for itself: Venezuela drops 2007 rig count target by 40 pct CARACAS, July 20 (Reuters) – Venezuela’s difficulties in acquiring oil rigs amid soaring global demand could lead to lower oil production amid a nationalization crusade by leftist President Hugo Chavez. Chavez has forced the hand of foreign energy companies in Venezuela with an aggressive campaign to take over oil projects that last month pushed Exxon Mobil (XOM.N: Quote, Profile, Research) and ConocoPhillips (COP.N: Quote, Profile, Research) out of multibillion-dollar heavy crude ventures. Apparently, for some odd reason the nationalization campaign 1). Seems to be scaring some foreign firms off; and 2). Is being met by falling production. The problem comes amid growing concerns that PDVSA’s… 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»

By Robert Rapier on Mar 22, 2007 with no responses

What Planet Are They From?

I have come across a couple of articles in the past few days that really left me shaking my head. One praises Hugo Chavez as a hero, and the other blasts oil companies for their multi-million dollar gifts to higher education. These people definitely see the world through a very different set of lenses than I do. Hugo Chavez: Hero of the People There are extremists on both ends of the political spectrum. For every Ann Coulter on the Right, there is a Wayne Madsen on the Left: Both are just as out of touch as they can possibly be. I have found that I can’t communicate with either sort of extremist, because they are generally entrenched in their views… Continue»