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What's the hype about ExxonMobil anyway?

By Aleksander Boyd

21.12.05 | Leftist fringes are having a field day with the purported ultimatum that Hugo Chavez gave to Exxon Mobil. Greg Morsbach bodily fluids can almost be seen dripping all over the BBC's article whereby he claims "Venezuela has given the world's biggest oil company, ExxonMobil, until the end of this year to enter a joint venture with the state." What the Beeb 'reporter' is not telling is that Hugo Chavez is unilaterally breaking contractual obligations; something his anglophone readers should know, just in case someone tells them that investing in Venezuela is a wonderful thing. He then goes on to say that Chavez's 'socialist' government has managed to 'convince' about every other company operating in Venezuela to migrate to the new contracts. PDVSA convincing argument goes like this "... we know that you have been operating fields in this country for a number of years and that these contracts came about through negotiations with the former management of the company. Well mis comandantes need mo' money, so you either forget about existing contracts and sign the new ones or you'll be kicked out of the country and your assets will be expropriated."

But the take away message here, which is what has liberal talibans orgasming is this: Big Oil is allegedly getting screwed by Chavez, or so they like to think. Of course they don't wish to realize that every visit to the petrol station or every energy bill they'll receive carries a premium, which is the way Big Oil has to transfer Chavez's bullying tactics onto the consumer. Does anyone think that they'll lose money? Only the barking moonbats.

During a radio interview the other day some ignoramus stated that Bush wanted to take over Venezuela's oil. When I replied by saying that Chevron Texaco is doing very well indeed and had been granted contracts by the Chavez regime he went mute.

ExxonMobil ought to form a coalition of aggravated parties and launch a class action againts Chavez's oil company for breach of contract. Alternatively it can seek to resolve the issue via international arbitration. There is a very dangerous precedent being set; should foreign companies bow to Latin American strongmen, soon enough a domino effect will take place (check out Brazil sheer disregard of intellectual property rights related to pharmaceuticals). Caudillos need to understand that there's consequences to their unlawful actions. That you won't read in the BBC pages though...

Joke of the day

To conclude with news from another deranged despot, Saddam tells Baghdad court he was beaten in prison. Isn't that hilarious?



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