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To: FairOpinion

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


9 posted on 01/16/2007 8:29:18 AM PST by null and void (Propaganda doesn't have to make sense. Hell, it often works better if it doesn't.)
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To: null and void
Ah, so he's decided to eliminate any incentive to improve the systems and infrastructure, and allocate resources by rationing?

The exploration, drilling, production and field maintenance of production is done by a large group of companies that apply their particular expertise to what is needed on a day to day basis. If Hugo truly nationalizes the entire infrastructure of the oil industry it will collapse. The skills of those involved in oil production and exploration are essential. These skills are in demand world wide. They will leave Venezuela. Production will fall off a cliff. It should also be noted that the oil fields in the Lake Maracaibo area are quite old. These fields demand great amounts of work by specialists to keep the production up. Many of these fields are now on secondary and tertiary production enhancement. This is very labor intensive requiring great expertise.

Hugo is shooting himself in the foot.

37 posted on 01/16/2007 9:11:02 AM PST by cpdiii (Oil Field Trash and proud of it, Geologist, Pilot, Pharmacist, Iconoclast)
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