You may file this under: It's about time.
I've been patiently waiting for something to be done regarding the seizure of Venezuelan oil infrastructure by communist dictator Hugo Chavez. It appears that time has come, with the help of Exxon Mobil Corp. (NYSE: XOM). As reported by Reuters, approximately $12 billion in Venezuelan assets have been frozen. It's just too bad that John F. Kennedy isn't still around. He'd have already parked an armada of gunboats a mile off the sunny shores of Venezuela. There's a limit to the amount of guff we should take from an out-of-control communist dictator.
Stephen Zamora, professor of international law at the University of Houston Law Center, told Reuters news service, "To me it sounds like a very aggressive tactic." His reaction to the freezing of approximately $12 billion in assets of Venezuela state oil firm PDVSA summed the move up as an aggressive yet novel tactic. As of this writing, PDVSA has not issued a formal statement about the asset freeze. The White House has also declined comment.
The tension is based on arbitration that is sought by Exxon to settle accounts in regard to Chavez's seizure of the Cerro Negro oil project. Exxon estimates its 41.7% stake at the time it was hijacked to be about $750 million. ConocoPhillips (NYSE: COP) has also entered into arbitration regarding assets that were expropriated in Venezuela. Reuters reports that ConocoPhillips states they are "seeking an amicable solution."
Amy Meyers Jaffe, energy policy researcher at Rice's Baker Institute, in regard to this action told Reuters: "These are precedents that are going to be important for what people can and cannot do in the oil industry." There are rules to be followed in the world of successful capitalism. That rule book should soon weigh heavy on the hot little head of Hugo Chavez. In my humble opinion, it's just about time for that.
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Reader Comments (Page 1 of 3)
2-09-2008 @ 1:48PM
DALE BOGGS said...
WHEN A COUNTRY OR A DICTATOR ARE POSTURING THEM SELVES IN A POSITION OF BEING A BULLY WE SHOULD BE QUICK AND DECISIVE IN GIVING THEM A BLOODY NOSE!
2-09-2008 @ 1:40PM
Chilla said...
It's about time indeed! Let all those who support communism and that yappy little lap dog chavez take note. Under communist rule all people must be equally misserable. Beware of hillery clinton's agenda.
2-09-2008 @ 2:40PM
steve said...
He may not be the best ruler, but he's just trying to protect his own country's resources from American corporations like Exxon who exploit every country on the planet. Read "Confessions of an Economic Hit Man" by John Perkins and you'll understand what's really going on here.
2-09-2008 @ 3:08PM
moonie said...
yayyyyyyyyyyyyyyyyyyyy it's about time speaks for itself a HUGE congtatulations to exxon wow this is great hooray for exxon wow
2-10-2008 @ 11:22AM
moonie said...
I hope he drowns in his own worthless oil
2-09-2008 @ 5:15PM
sgentilejr#aol.com said...
That "Evil Dictator" Chavez...took from EXXON and is now giving millions of gallons of very low cost heating oil to poor American families and senior citizens.
How dare Chavez be so freaking Evil to help our poor get through the winter with low cost heat in their homes. How dare Chavez be so Evil take from Exxon and help out our poor.
He kind of acts like he thinkls he is Robin Hood...he took from rich Exxon and gives to our poor.
2-09-2008 @ 9:25PM
mage0213 said...
And where do you get this information from? Chavez never gave away anything to my knowledge, all he has done and IS doing is taking and taking more.. Prove to ME that chavez is giving low cost heating oil to americans.. figures and facts ONLY please. this is the same persona who wants to become president so he can turn his presidency into permanent CZARship. I'm sorry it is too close to home for me (this communism crap) china, cuba, venezuela? who next?
2-12-2008 @ 5:37PM
Gil said...
You sound like you are in an OK status yourself. How about I come to your house and take possession of some of your good stuff, including your computer, and give it to the poor child on the other side of town? That child needs it and, even though you invested a lot of your resources for those things, you can stand the loss. That poor child in entitled to have it. Same communist thinking.
ExxonMobil reports a large profit for many reasons but you must realize that the profits go out to those who own millions of shares in the company. Those owners are small people like you and your neighbor, your union, your retirement plan, your insurance company, your 401K, your mutual fund and many more. Those people and institutions are not many unreasonable profit on their investments and the risks that they have taken. Exxon profit is large in dollars but not out of proportion to the amount of investment the company represents. Please think through how business operates, who takes the risk and who benefits before you kick the horse just because he is larger than you.
2-09-2008 @ 5:17PM
sgentilejr said...
It's about time that someone beat Exxon the same way they have been beating us for years.
2-09-2008 @ 5:19PM
sgentilejr said...
Nice to see someone rip off Exxon for a change, since Exxon has been ripping us off for years and cleaning our pockets out.
2-09-2008 @ 5:33PM
robert cremone said...
ya ya ya We are always the bad guys, aren't we.
Venezuela wouod still be using leaves to wipe their butt if it wasn't for the US of A. Seems like many peoplke only like to criticize America and even its businesses. Turn up the thermostat some cold winter day and see who you blame when the heat doesn't go on. Idiots!
2-24-2008 @ 1:41AM
Latino said...
Yeah! we would still be wiping our butts with leaves, but you would be freezing your butts up every winter if it wasn't for Venezuelan oil (and every other country you suck up oil from). That's your "American" way of thinking, when a President stands for his country's national interest which is contrary to the US national interest, then you brand him as a dictator. Chavez has been elected by the majority of his country people (50% plus one), not like your 2001 fiasco election, where more than half Americans voted for Gore and still your "anti-democratic" system gave victory to "oil thristy" Bush. Chavez was reaffirmed by a Referendum with more of 65% of the vote. The only country in the world with a referendum option. I challenge the US Congress to amend the constitution so that you would have the chance and power to call for a referendum if 20% of elegible voters consider your President sucks. That'd be a real democracy, but of course, they would not let you have that option. It's a pity most of you don't see farther than your noses. That's because most of you swallow straight down only whatever the media, Fox, CNN, wants you to digest. Wake up, there is real world out there of human beings....
2-09-2008 @ 6:31PM
robert cremone said...
WHY CRITICIZE American profits? When foreign countries make billions I don't see these do-gooders criticizing them. Profits go into exploration and research. Let's help these other countries do this so they can dominate us someday. IDIOT LIBERALS....and stupid too!
2-09-2008 @ 6:22PM
billy said...
try and settle this cuban expropriation someday
2-09-2008 @ 6:25PM
billy said...
when are we going back to coal ?we have the worlds largest reserves right here in the u.s.a.
2-09-2008 @ 7:11PM
MikE said...
Before we get too smug and real macho we should remember that about 17% of our oil supplies come from Venezuela. Do you really think we can do without them? As far as the gun boat diplomacy goes ... we do not have any "gun boats" either and Kennedy would not have invaded Iraq.
2-09-2008 @ 7:46PM
Mikey the Nail said...
Now hold on there, Hoss...
I'm all in favor of capitalism (within the bounds of decency), but when companies like Exxon dump millions or billions aboard, in little $hithole banana republics, paying off everyone in sight, they know or should know it could all go down the drain with one single presidential order of nationalization.
Exxon got what it deserved.
Wait 'till you see what happens in China. You'll forget all about Venezuela!
2-11-2008 @ 2:55AM
Elida Lovo said...
Garry Sattler misinforming the readers about Hugo Chavez shows his ignorance.
Hugo Chavez is not a dictator and a communist.
He was freely elected by his people. Anyone in Venezuela can write or speak anything they feel against or for him. He is a democratic socialist, and if you don't know what that is Mr. Sattler,
educate yourself. It is very easy to slander anyone and say whatever, but only ignorant people will go along with you.
The Venezuela oil belongs to the Venezuelan people, for everyone in Venezuela not for the
chosen few as it was in the past. Chavez is trying to protect his people.
QUE VIVA CHAVEZ !
2-09-2008 @ 10:13PM
john said...
Has anyone stopped to think that now if his debt is paid than he is free to sell his oil at the bush war price that is still climbing,He wins and I think he should. When did those filthy pagen oil corps ever aquire juristicion over venezuela's recource's? Does anyone realize that he already owns a percetage of AMERICA BECAUSE CONGRESS SOLD IT UNDER YOUR GRANDPARENTS WATCH. 1933 GENEVA CONVENTION U.S. BANCRUPT.
2-10-2008 @ 12:28AM
fred said...
exxon is the biggest poluter in the planet. hugo chavez is doing something good and has the courage to do it alone. we need more people like hugo chavez. long live hugo chavez.