Posted on 01/03/2006 3:51:36 PM PST by Flavius
CARACAS, Venezuela - Venezuelan President Hugo Chavez said the nationalization of Bolivia's oil and natural gas resources would be a topic when he meets Tuesday with visiting Bolivian President-elect Evo Morales. ADVERTISEMENT
"Hydrocarbons and their nationalization — we're going to talk about that," Chavez told reporters at Caracas' international airport, where a red carpet and full military honors greeted Morales.
Morales, who takes office Jan. 22, made nationalization a part of his successful presidential campaign.
He is being closely watched on how he manages Bolivia's vast natural gas resources — the second-largest in South America after Venezuela. He has assured private companies operating there that he will respect their Bolivian assets but has also said the country's vast reserves have been "looted" and that current production contracts must be renegotiated.
France's Total SA and the Spanish-Argentine Repsol YPF SA are among the foreign oil companies with big investments in Bolivia.
Zapatista leader Subcomandante Marcos salutes with other Zapatistas during a meeting in Palenque, Chiapas, Mexico Tuesday, Jan. 3, 2006. Marcos is kick-starting a six month tour of Mexico, which Zapatistas have dubbed 'the other campaign.' It coincides with the run up to Mexican presidential elections in July. New Year's Day 2006 coincides with the anniversary of the first armed Zapatista uprising of 1994. (AP Photo/Eduardo Verdugo)
Masked rebel leader of the Zapatista National Liberation Army (EZLN) Subcomandante Marcos (L) waves as he arrives at a meeting in Palenque in the Mexican state of Chiapas January 3, 2006. For the next six months, the leaders of the EZLN will travel all over Mexico to try to galvanize support for their left wing agenda, finishing in June in Mexico City, just before the presidential election. REUTERS/Bernardo de Niz
Latin America has a repeated history of veering to the left and then to the right. I have a few shares of Great Panther Resources, which has taken over a large silver mine in Mexico that was earlier taken over by the workers some years ago and run into the ground.
There's plenty of ore, a machine shop, the works, but the workers' unions were just too greedy to sustain the operation. They ran it into the ground and put everyone out of jobs.
So, now they have let a Canadian company come in, buy it, and run it right. Then, no doubt, a certain number of years down the line, when it is humming along and dividends are rising, there will be political pressure to nationalize it.
It's anyone's guess just when these all too common political revolutions will play out. Some South American countries are still pretty healthy, but the Hugo Chavez disease is catching.
thats the price for volatility and third world markets, high risk low returns,...
Time for Executive Action?
The Mexican constitution prohibits foreign ownership in the energy sector.
The first consideration is whether foreign ownership of gas plants is even permitted in Mexico? Since four of them have received authorization to operate, one would think that this is not a problem. It helps that each plant will invest billions in the local economy. But anyone who hasn’t read Mexico’s Foreign Investment Law lately might be a bit surprised to find that foreign investment in energy and gas is a category that is off-limits to foreign participation.
What is going on here is that President Vicente Fox favors the gas plant investments, and he is turning a blind eye to the law as written and on the books. Critics are attacking him on this, accusing him of selling out to the highest bidder.
http://www.mexidata.info/id408.html
"Nationalization or Eminent Domain?"
Neither. It's 'Armed Robbery'.
Fox's number one priority as president was to get the constitutional amendment passed but he was un-successful.
Mexico's biggest problem is that the govt must rely on Pemex profits to run the govt because the underground economy is vast and un-taxable. Consequently, Pemex doexn't have the capital to develop/fulfill Mexico's future energy needs.
Thanks for your information.
All Mexico's oil workers are in Texas.
Whereas Texas is now exporting ng to Mexico, Mexico will soon be exporting ng to Texas.
Mexico is corrupt, but is also the tenth richest country. They wouldn't want to nationalize at this point since it would eliminate the substantial portion of the income derived from bribery.
I don't know how to start a thread 9perhaps you could?) - but figured this was a good thread to mention that I just heard on Fox News that Bolivia sent in its troops to take over the oil fields. Next will come talks with foreign oil companies.
And who's going to invest in Mexico and take the risk of their investment being nationalized?
The only people for whome that would be viable, would be people who would be willing and able to kill Fox and his whole ruling elite if they even thought that Fox was considering it.
Did you ever hear of NAFTA Chapter 11?
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