Posted on 01/20/2006 4:01:57 PM PST by proud_yank
JAN. 20 5:18 P.M. ET President Hugo Chavez said Friday that Venezuela expects to reap an additional US$1.5 billion (euro1.24 billion) this year in oil income with the return of 32 privately operated oil fields to state control.
This "shows how important it is that a country manages its strategic resources," Chavez said in a nationally broadcast speech.
Chavez's government has declared as illegal contracts under which foreign oil companies like Royal Dutch Shell PLC, Chevron Corp., BP PLC, and Brazil's Petrobras S.A. independently pumped oil at the Venezuelan fields.
He said Friday those contracts allowed foreign companies to extract oil at US$4 (euro3.30) a barrel then sell it to the national oil company, Petroleos de Venezuela SA, or PDVSA, at US$20 (euro16.54). The contracts also required PDVSA to pay the related royalties.
The government recently made all companies sign agreements to give up those contracts and form new state-controlled joint ventures, known as "mixed companies," with PDVSA.
(Excerpt) Read more at businessweek.com ...
Chavez has met with the Iranians and backs their goals...
Poverty has already gone up from 45% to 55% under Chavez.
The predictable results of these expropriations is that the government will reap a lot more money for the next few years, which will go into the pockets of the governing class. Then the oil wells will start to get decrepit, maintenance will be neglected, greed will suck more and more money out of less and less production, and eventually the whole thing will turn into a losing operation.
And the people of Venezuela will suffer for it.
Come on, Hugo has the best interest of 'the people' at heart, thats why he does the thinking on their behalf.
Scary situation down there.
I wonder what it will take for people to realize the mistake they made!
I think every liberal should watch these events unfold.
They are watching... and rejoicing! They'll NEVER admit that Socialism in any of its forms is a mistake.
These people are sick. Its one thing to protest your govt, but these A**holes who prance around in Che and Mao t-shirts, holding their socialist revolution banners, should be tried for treason and kicked out of the country.
Stupid idealistic philosophies responsible for so many dead and impovershed. Disgusting.
Politicians don't know how to accomplish that. In fact, politicians don't know much, so don't rely on them.
Amen, if it is subsidized it IS a failure.
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