Venezuela to nationalize 'absolutely all' energy sector

CNN Money ^ | Jan. 14, 2007 | Reuters

[FairOpinion]

Chávez tells parliament: 'We have decided to nationalize the whole Venezuelan energy and electricity sector, all of it, absolutely all.'

Venezuelan President Hugo Chávez said on Saturday the country's entire energy sector had to be nationalized, reinforcing his socialist revolution and possibly giving himself more targets for state take-over.

But he said he would permit foreign firms to hold minority stakes in energy deals.

The president was reinaugurated this week for a term that runs through 2013.

Chávez has already pursued oil and gas projects and power utilities but on Saturday left no leeway for a private company to hold a majority in operations anywhere in the energy sphere.

[FairOpinion]

Communism is not dead, it just moved closer to us.

[zarf]

The Bennies elected him.. More power to them. I hope they enjoy the slow ride to an economic melt down!

[E. Pluribus Unum]

Hugo will be Ceausescued before his term is up.

[Thermalseeker]

Hugo will be Ceausescued before his term is up.

I think so, too. He's seized and nationalized a lot of infrastructure that belongs to foreign companies to the tune of hundreds of millions of dollars. There is a bullseye on his head like never before.....

[Prophet in the wilderness]

That was basically what I was about to say, but, in different words, he ( Chavez ) is just fooling himself, and those who follow him, and he will be watching his money vaporize before his eyes.
I wanted to cringe when I heard him saying his oath, and made the comment that Jesus Christ was the greatest socialist who ever lived.

[GulfBreeze]

What are Bennies?

[Obadiah]

Only complete ignoramuses did not see this coming a long time ago.

[goldstategop]

That's how tyrants grow. They promise the people the world and in exchange for temporary safety they forfeit their freedom.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[null and void]

Ah, so he's decided to eliminate any incentive to improve the systems and infrastructure, and allocate resources by rationing?

[livius]

Benezuelans.

[livius]

Yes, and it's picking up speed. A few days ago, he said he was going to nationalize various crude producers/refiners only "partially," by renogotiating the contracts so that VZ would have a bigger share. The rumor was that it would want a majority share and I guess the rumor was right. If he's even going to go through with the contract farce.

I wonder if he'll be able to get away with this.

[3AngelaD]

"But he said he would permit foreign firms to hold minority stakes in energy deals." He still needs our investment money, but doesn't want to guarantee it won't be confiscated at some point. Communism has never worked. It won't this time, either. The only reason Russia survived as long as it did is that the West loaned the Soviets money, beginning in the 1920s and continuing through the Cold War. Chavez is headed for the kind of ending Mussolini got.

[Prophet in the wilderness]

I am not sure if most voted willingly for him, like how Iraqis voted for Saddam..... as in " vote for Saddam or else ".

[Cold Heat]

This is no surprise. He is aligned with Iran and they are in the process of forming a anti U.S. coalition to use oil and anything else they can use as a wedge and a tool to hurt the U.S.

Any private company, working in Venezuela has seen this coming for years, and have made plans to deal with it, but the U.S. response will be interesting to see when and if we do strike back.

Look for Citgo in the U.S. to be divested and I expect a complaint and suit to be filed in the World Court.

At some point, there will be a revolution funded by us, and it will certainly be a predecessor to our eventual engagement with Iran through proxies.

It's going to be a exciting couple of years.

[Prophet in the wilderness]

"Chavez is headed for the kind of ending Mussolini got." let's hope sooner than later.

[jalisco555]

Hugo will be Ceausescued before his term is up.

He clearly intends to become President-for-Life so the only way he'll leave office is feet first. The only question is will his reign be short or will he have the time to wreck Venezuela the way his idol has wrecked Cuba.

[rottndog]

Communism is very dead, it's practitioners are simply insane, however (under Einstein's definition of insanity).

[OKIEDOC]

Yep, Senior Smoke and Mirrors Chavez is a phony.

He knows the course he has set out on and fooled the many ignorant poor of Venezuela.

I keep warning my friends and relatives living in Colombia that Chavez will one day pick a phony fight.

He will then and launch and all out strike against them to redeem his and Venezuela's honor.

This will be his way of reuniting the old Bolivian empire.

This Chavez scum bag is already festering all over South America.

Thanks to Jimmuh Peanuts Carter and the liberals for putting us into harms way.

[yankeedame]

There is a bullseye on his head like never before.....

And on his back.

[rottndog]

BTW, this is an excellent opportunity for ambitious economists to demonstrate the stupidity and utter failure of national collectivism.