Here he goes again…

Jpm5000000pmTue, 01 May 2007 19:49:43 -080007 23, 2007

It finally happened: to solidfy the socialist status of his country, Hugo Chavez took over the last privately run oil field in Venezuela. 

The companies ceding control included BP PLC, ConocoPhillips, Exxon Mobil Corp., Chevron Corp., France’s Total SA and Norway’s Statoil ASA. All but ConocoPhillips signed agreements last week agreeing in principle to state control, and ConocoPhillips said Tuesday that it too was cooperating.

While this was not an overnight coup (there have been talks going on for a while now), it still is somewhat of a wake up call for these companies, and the governments of these companies.  Chavez declines to talk about (or just refutes) any problems that the national oil company might have or the lack of experience.  Most outside oil experts agree that the Venezuelan government and oil operations need these foreign companies to help ensure the proper production of the oil.  In sum, Venezuela needs their expertise.   Furthermore, Chavez said that if the oil companies were to step out, China, India, and other countries could step in–excluding you know who.

While this recent step by Chavez is a risky one, it also appears to be somewhat well received by the people.  The question is will this work?  Does Venezuela even with the expertise from the other oil companies hold the capacity to develop all that oil?



One comment

  1. […] read this post without thinking about discussions about the so-called “Oil Curse.” Here he goes again… « Venezuela It finally happened: to solidfy the socialist status of his country, Hugo Chavez took over the […]

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