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Judi Lynn Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-29-08 06:48 PM
Original message
Chevron happy in Venezuela, says it's there for the 'long term'
Source: MarketWatch

Chevron happy in Venezuela, says it's there for the 'long term'

By Isabel Ordonez
Last update: 6:49 a.m. EST Feb. 29, 2008Print E-mail RSS Disable Live Quotes

HOUSTON (MarketWatch) -- Chevron Corp. (CVX:CVX CVX, , ) sees its oil business with Venezuela as a "long-term" relationship, a top executive of the oil giant said Thursday, adding that Chevron plans to comply with new contractual terms for its projects in the Orinoco Belt.

"We will continue to follow our contract to the government of Venezuela and PdVSA," Ali Moshiri, president for Chevron Africa and Latin America Exploration and Production, told Dow Jones Newswires. "We are in Venezuela for the long term."

Chevron was the only U.S. oil major that accepted the new contractual terms imposed last year by the government of President Hugo Chavez on international oil companies operating in the Orinoco River basin, which produces abundant but low-quality crude.

The changes gave majority ownership to Venezuela's national oil company, Petroleos de Venezuela SA, or PdVSA.
Exxon Mobil Corp. (XOM) and ConocoPhillips (COP) abandoned their projects in June after rejecting the new contractual terms. Both are now seeking compensation through international arbitration.


Read more: http://www.marketwatch.com/news/story/chevron-happy-venezuela-says-its/story.aspx?guid=%7B8660EC7A-0996-4225-ABD3-C8F305A4164C%7D
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Dr.Phool Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-29-08 07:15 PM
Response to Original message
1. But, if I were Venezuela, and saw the SS Condaleeza Rice steaming in,
I'd call out the army!
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Peace Patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-29-08 09:25 PM
Response to Original message
2. Here's why Norway's Statoil, France's Total, British BP and Chevron are okay
with the deal (Venezuela having a 60% share in its own oil), and Exxon Mobil and Conoco are not. The latter two are part of Donald Rumsfeld's new oil war...

"The Smart Way to Beat Tyrants Like Chávez," by Donald Rumsfeld, 12/1/07
http://www.washingtonpost.com/wp-dyn/content/article/20...

Hillary Clinton echoes Rumsfeld here:

"If I am entrusted with the presidency, America will have the courage, once again, to meet with our adversaries. But I will not be penciling in the leaders of Iran or North Korea or Venezuela or Cuba on the presidential calendar without preconditions, until we have assessed through lower level diplomacy, the motivations and intentions of these dictators. --Hillary Clinton (at GW University, 2/25/08)
http://www.hillaryclinton.com/news/speech/view/?id=6196

Obama's statements about Chavez (read: Oil War II) have been more ambiguous and circumspect, but not particularly comforting. Neither Clinton nor Obama seem to understand that Chavez is NOT a "tyrant," has run a scrupulously lawful, elected government for ten years, and has a 70% approval rating. What do the Venezuelans know that our political establishment is deliberately hiding from us? That Venezuela has transparent elections, and we do not? That the poor majority deserves more than warm spit--they deserve REAL representation of their interests in government?

In any case, I believe that Rumsfeld and Exxon Mobil are working together to, a) destabilize Venezuela, and b) regain corporate predator control of the Andes oil fields, which are now controlled by four leftist(majorityist) governments that believe in social justice: Venezuela, Bolivia, Ecuador and Argentina (big recent oil find in the latter). Last I heard, Conoco was still in talks with the Venezuelans, but I guess they've joined the war party.
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nikto Donating Member (414 posts) Send PM | Profile | Ignore Sat Mar-01-08 03:32 AM
Response to Reply #2
3. Thanks for that...
Very informative!
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lonestarnot Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 08:28 AM
Response to Reply #2
7. sssssshhhhh! Buzzards!
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Judi Lynn Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 04:12 AM
Response to Original message
4. Italy’s Eni to invest $4bn in Venezuela
Italy’s Eni to invest $4bn in Venezuela
By Ed Crooks and Megan Murphy in London

Published: February 29 2008 22:14 | Last updated: February 29 2008 22:14

Eni, the Italian oil and gas group, plans to invest $4bn in Venezuela, making the biggest commitment by a western oil company since President Hugo Chávez began to take control of the country’s oil projects in 2005.

Eni has reached agreement in principle with PDVSA, Venezuela’s state-owned oil company, to develop an area of the Orinoco belt – on some measures the world’s largest oil reserve.

The investment would expose Eni to the risk of further expropriation by Mr Chávez, while giving it access to Venezuela’s huge reserves ahead of its European and US competitors.

Paolo Scaroni, Eni’s chief executive, and Rafael Ramírez, Venezuela’s energy minister, were expected to sign the deal in Caracas last night, in the presence of Mr Chávez and Massimo D’Alema, Italy’s foreign ­minister.

The deal is the most concrete sign yet of Venezuela’s enthusiasm for foreign investment to revive its ailing oil industry.

More:
http://www.ft.com/cms/s/0/038d272e-e6fa-11dc-b5c3-0000779fd2ac.html?nclick_check=1
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eridani Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 07:32 AM
Response to Original message
5. Glad that not all oil company CEOs think it's necessary to use military force to do business
Looks like regular old deals to the trick.
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hack89 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 08:17 AM
Response to Reply #5
6. Until Chavez unilaterally changes the deal
That is the issue with Exxon - that's why it is in the courts.
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AP Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 09:01 AM
Response to Reply #6
9. In the past, Venezuelan governments have "unilaterally" decided to give away their oil
to foreign oil companies charging half the royalty rate that most countries charge. Other governments unilaterally decide to own 100% of their oil fields (and not 60%).

Venezuelan is hitting the ball down the middle.

Your "changing the deal" formulation makes it impossible for any country to go undo an unfair situation.

I think it's more reasonable to say that no foreign oil company should have expected that they'd be able to benefit from unfair deals (contracts of adhesion) with Venezuela in perpetuity.


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hack89 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 01:37 PM
Response to Reply #9
14. But Chavez made the deal with Exxon in the first place!
How can he turn around and say it was unfair?

Look to Iran to see Venezuela's future if they are not careful. Because of the the lack of foreign investment, their annual production is falling. They have to import gas. The reason for the lack of investment is the the Iranian government can't be trusted to adhere to international trade law.
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ArfDogMNO Donating Member (123 posts) Send PM | Profile | Ignore Sat Mar-01-08 02:29 PM
Response to Reply #6
16. Yeah I am surprised folks think this is the last forced re-negotiation. ntxt
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robcon Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 08:35 AM
Response to Original message
8. If I had money invested in the oil business in Venezuela, I'd suck up to Chavez, too.
The fear that Chavez will nationalize Chevron's business is the reason why the company is 'making nice' to Chavez.
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AP Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 09:03 AM
Response to Reply #8
10. You really think they're afraid Chavez will nationalize the fields? I strongly doubt anyone fears
that.

It's seems pretty obvious that Chavez sees the benefits of bringing foreign money in for exploration.
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robcon Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 09:34 AM
Response to Reply #10
11. Lots of benefits from foreign money. But, as we've seen before, politics trumps economics
Edited on Sat Mar-01-08 09:38 AM by robcon
'Venezuelans arise - the foreign companies are sucking us dry of the wealth of our country!!!!'

Chavez backed off his decision not to sell to the U.S. But that was a no-brainer. No other country's refineries can handle Venezuelan crude to the extent the U.S. can, so he would be left without a country to which he could sell most of his oil.

Nationalizing the oil companies - along the Mexican model - would provide Chavez with a lot of patronage, a lot of corrupted officials and a lot of publicity about wagging his finger at the multinational companies. I think he'll do it, in the name of socialism, as soon as he can create or exploit a "provocation."

I think Chavez is itching to stick a finger in the eye of the U.S., and the oil companies.
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AP Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 10:10 AM
Response to Reply #11
12. That's not very convincing.
Edited on Sat Mar-01-08 10:18 AM by AP
It seems like Venezuela is doing exactly what it wants right now and it seems like it's fair and its working.

And after 8 years, why would the government suddenly decide it's more interested in patronage and corruption than building a functioning democracy and economy that distributes wealth fairly, as it has been doing?



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robcon Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 12:01 PM
Response to Reply #12
13. It's fair???????
You actually think the current government is fair and uncorrupt???? ROFL. Closing down any critical TV stations lately? Unconstitutionally packed any Supreme Courts lately? (actually that wasn't lately - it was in the first year of his term) Tried to get his administration to overcome his constitution on term limits lately? Imagine the condemnation if Bush tried to do any of those things.

I think Chavez will do anything to needle the U.S., and he has stated he is on a campaign to make South America a socialist zone. Mark my prediction: he will nationalize the oil companies before his term is up.
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High Plains Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 02:03 PM
Response to Reply #13
15. Prediction duly noted. We'll see.
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Judi Lynn Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 02:53 PM
Response to Reply #15
17. That should be interesting to witness, since it was nationalized in 1973,
according to the BBC Venezuela timeline:

1973 - Venezuela benefits from oil boom and its currency peaks against the US dollar; oil and steel industries nationalised.

http://news.bbc.co.uk/2/hi/americas/1229348.stm

Wikipedia believes it was 1975:
Venezuela nationalized its oil industry in 1975-1976, creating Petróleos de Venezuela S.A. (PdVSA), the country's state-run oil and natural gas company. Along with being Venezuela's largest employer, PdVSA accounts for about one-third of the country’s GDP, 50 percent of the government’s revenue and 80 percent of Venezuela’s exports earnings. In recent years, under the influence of President Chavez, the Venezuelan government has reduced PdVSA’s previous autonomy and amended the rules regulating the country’s hydrocarbons sector.<15>
http://en.wikipedia.org/wiki/Petroleum_politics

More:
State control of key sectors of the economy and companies providing basic services is not a new phenomenon in Venezuela. In fact, privatizations are the more recent trend. For example, the phone company CANTV became privately run for the first time as recently as 1991, and the steel industry ended 23 years of national control with its privatization in 1998. Unfortunately, policy-makers and executives too often favor prevailing trends as the only acceptable policy options.

The Venezuelan oil industry was nationalized in 1976, and state oil company PDVSA was created to direct revenues toward national development. However, as former PDVSA advisor Bernard Mommer has pointed out, oil executives began to seek greater independence from the Venezuelan state not long after nationalization. Investments were shifted away from non-oil development projects benefiting the national population, and by the time Chavez was elected in 1998, PDVSA’s directors were aiming to re-privatize the company and cut formal ties to the state.<3> Nationalizations today will ensure a long-term and large-scale redistribution of state profits through increased social services and public aid programs.

(snip)
http://www.rethinkvenezuela.com/downloads/Nationalization.htm
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Peace Patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 06:27 PM
Response to Reply #13
18. Let's see. FDR is guilty of two of your charges--trying to "pack the Supreme Court"
and exceeding George Washington's precedent (not in the Constitution for our first 180 years) of two terms as President, by RUNNING FOR and WINNING **FOUR** terms as President of the United States. Were those things "unfair"? "Unfair" to the SOBs who crashed the U.S. economy, maybe. Did they deserve "fairness"? (No more than Exxon Mobile does!) But then you probably approve of the little fascist Alvaro Uribe proposing CHANGING THE LAW so HE can run again in Colombia--Bush's favorite country in South America, where they torture and kill thousands of union leaders, small peasant farmers, political leftists, human rights workers and journalists, with impunity, and rake in billions of our tax dollars in military aid through Bushite fingers. THEIR president can propose running again, but not Chavez. Your blind spots are glaring, Robcon.

Denying a TV broadcast license to use the PUBLIC airwaves? Gee, Bush's "free trade" pals in Peru did that four times over the last several years. It is a ROUTINE action of government to regulate the PUBLIC airwaves and grant and deny licenses. The Chavez government had more cause to do so, with regard to RCTV, than any other government on earth--since RCTV actively participated in the violent rightwing military coup attempt against the legitimate, elected government, which kidnapped the elected president, and suspended the Constitution, the National Assembly, the courts and all civil rights--a coup supported by, and probably funded by, the Bush Junta. Talk about your "suppression of free" speech! How about NO Constitution? How about NO civil rights? RCTV hosted meetings of the coup plotters, and lied and distorted events on their behalf, during the coup.

Good riddance to RCTV! We could use that kind of tough-minded, anti-global corporate predator government here! The airwaves belong to the PUBLIC. The PUBLIC has a right to regulate their use in its own interest--not just to staunch violent overthrow of the government, but also to encourage diversity, to insure wide spectrum political debate, to provide FREE air time to candidates--to get rid of this filthy campaign contribution system--and to insure that the public receives at least some information that is not dictated by the corporate rulers. We had far, far better broadcast journalism in this country back in the era of the Fairness Doctrine, when opposing political views were given equal time--REQUIRED by government regulation. The Left STILL doesn't have equal time in Venezuela--and now it has NONE here. The Venezuelan airwaves are filled with rightwing propaganda, even without RCTV. I'd be for a Fairness Doctrine there, if I were Venezuelan. And corporatists would likely fight it tooth and nail, because they DON'T WANT fairness. They want people only to hear THEM and their loudmouth, MINORITY corporate/fascist viewpoint.

There is NO evidence--none, zero, zilch--that the Chavez government is corrupt, and there is overwhelming evidence that it is using the oil profits exactly as it promised that it would, to bootstrap the poor, with education, medical care, small business loans, land reform and other social programs, and to pull Venezuela out of its "neo-liberal"-induced Depression. Venezuela now enjoys a 10% growth rate, with the MOST growth in the PRIVATE sector, the near elimination of illiteracy, and a 40% reduction in poverty, not to mention the liveliest political culture in the western hemisphere--due to the government's encouragement of maximum citizen participation--and it has a President with a 70% approval rating. They furthermore have elections that put our own to shame for their transparency.

Corrupt? Bush is corrupt, or hadn't you noticed? Cheney is corrupt. Our entire political establishment is a cauldron of corruption--Democrats and Republicans alike. Or hadn't you noticed? That's why the middle class is failing, here, and the poor are hopeless. That's why millions of jobs and our manufacturing capability have been outsourced to China, India and the other cheap labor markets. That's why so many of our industrial towns are ghost towns. That's why we're facing a TEN TRILLION DOLLAR deficit, with our treasuries looted for a corporate resource war in the Middle East, and for tax cuts for the super-rich. That's why we have done no planning for global warming. That's why we have "trade secret," privatized, corporate vote counting. And that's why we DON'T have decent broadcast journalism, or any other kind of professional journalism, to expose these fuckers for what they've done! To warn us. To be vigilant. To help us keep the war profiteers and the corporate predators, and the politicians, accountable to the people.

Corrupt? Tell me THIS isn't the height of corruption, and evil...

"The Smart Way to Beat Tyrants Like Chávez," by Donald Rumsfeld, 12/1/07
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/30/AR2007113001800.html

Who are the "tyrants," RobCon? Who are the corrupt? Who are the unelected? Who are the greedy? Who are the conniving, lying predators who have ruined our country, and slaughtered 1.2 million innocent people to get their oil?

Answer: The ones who hate Hugo Chavez, and hate and fear his supporters--just as they hate and fear the majority in this country. The ones who are pouring OUR tax money into fascist groups in Venezuela, Bolivia and elsewhere, to TOPPLE democratic governments--governments "of, by and for the people." These are the "tyrants" and "dictators" and the corrupt. Not Chavez, nor his allies in DEMOCRATIC Bolivia, Ecuador, Argentina, Brazil, Uruguay, Nicaragua and throughout South America.

Chavez may be ambitious. He may be full of himself. He may seek more power. So did FDR. So was FDR. That is typical of most politicians. But both ran lawful, elected governments in the interest of the People. Ambition, self-confidence and power are essential for leadership and governing. You want WEAK leaders? That is bullshit. We need strong and accountable leaders, acting on our behalf. That's what the Venezuelans have, and I wish to God we had that here!
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Psephos Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-01-08 07:03 PM
Response to Original message
19. In other news, HRC says she's happy in her marriage, and there for the long term
For pretty much the same reasons as Chevron's "content" in Venezuela....
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