Posted on 05/02/2006 9:20:27 AM PDT by Mount Athos
Mr Morales announced the nationalisation as an end to what he called "the pillage of our natural resources by foreign companies".
Brazil could have solved that problem just by annexing Bolivia. Then they would not have been "foreign" companies. In fact, they might yet.
Morales is now talking about nationalizing mining and private land also.
Shades of Zimbabwe. Another uneducated neaderthal that won't learn from history.
What will happen is what always happens when these indeginous leftist types take over a country. They will run all the knowledgable people out of the country, turn the operation over to their buddies, the gas field will cease to function and Billions of dollars of natural resources will go unused as the economy of the country tanks.
This why we need to do what is necessary to develop all of our own oil and gas resources. The Marxist that run these countries don't view the world in the same way we do, and we can not depend on them to follow a capitalist path of 'we may be Marxist but we still need to make a buck.'
The "Zimbabwe Zyndrome" is spreading faster that ebola in a crowded hospital...........
The companies should leave things as they found them.
China will do it
Er, that's not the same. Nationalizing an industry is a long way from having reservations about certain aspects or events in the world of free trade.
Morales seriously believes that no one should buy Bolivia's natural gas, and that the company is going to make its living producing coca leaves.
I was wondering about Brazil's reaction. IIRC, the Spanish company Repsol company has an Argentine partner or component. I wonder what the Argentines will have to say? Both Argentina and Brazil have leftists in charge, but I don't think they're nutcases the way Morales and Chavez are.
Punitive terms?
Under the terms of the nationalisation, they are required to agree new contracts with the state-run firm, Yacimientos Petroliferos Fiscales Bolivianos (YPFB), within 180 days.
In the meantime, Bolivia will keep up to 82% of their revenues, allowing them just the remaining 18%.
Maybe all the folks who bray about "excess profits" would like to operate in this business environment.
This is not the first time this has happened to oil companies, this sort of crap goes way back.
If we weren't so damned dependent on hydrocarbons.. can you imagine how irrellevant the poorest and most ignorant parts of the world would be???
Just an observation.
Only DPW was prevented from operating a US port. Other foreign owned companies operate in our ports, including Hutchinson Whampoa.
They likely will just shut down the production completely...rather than run in the red for these Reds.
Let's see how well these cretins produce their own oil...and just how and where they will get it marketed... don't most the pipelines run into Brazil?
Petrobras, which has invested more than $1bn in Bolivia and controls 45% of its gas production, was duly placated. The company's boss, Jose Sergio Gabrielli, said he expected an excellent business climate under Mr Morales.But at the same time, he needed to reassure Brazilian investors - especially Brazil's state-owned oil and gas giant, Petrobras - that he would take a business-friendly approach.
The only twist here is that it was done to FELLOW LEFTISTS. Hoist by their own petards!
But still, it is cold comfort for us, with these movements being mightily fueled by Chinese political/military machinations in the background and their covert influences with these 'allies.' Can't believe we still allow the Chi-Comms to get ANY foreign direct investment to enable their tyranny to strengthen...
Silver stock went south today when rumors started about this guy nationalizing the mines. They rebounded later whne he said he's only tas the bejesus out of them.
tax=tas
Fox just was covering this. Armed troops are standing out in front of buildings.
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