Now Chavez wants the capitalists to bail him out.

[Hondo]

Seems ol' Hugo is soliciting western oil companies, along with China and a few others to return and get his state-owned oil industry back on track. Seems his other nationalized businesses aren't doing well either.

http://www.iht.com/articles/2009/01/15/america/15venez.php?page=1

Dear Hugo,

Nobody, including yourself, seem to ever know if you're coming or going. Maybe you thought that once the hard and expensive stuff was done, like exploration, development, and construction, you could merely swoop in and run the thing, pocketing the profits. Now you have found otherwise. While you revel in the current butt-kicking capitalism is taking right now, you should remember that capitalism is what built your industry in the first place. Now you want it back to revive and improve it. Two things:

1. If I owned an oil company, having been burned by you once, I wouldn't come back in there on a bet. Those that do will have nobody to complain to when, in 2 years, and things are going good again, you confiscate their holdings again.

2. Don't be surprised if the Exalted Transparent One doesn't try something similar with the US oil companies or tax them so heavily that oil exploration and production for US companies is no longer worth the effort.

It's the mess you created for yourself, enjoy it.

Your friend,

Fiero

P.S. That's a really snappy jacket you have on. Do you suppose you could get one for the Exalted Transparent One?

[leopard]

Every decision taken by a president is made prudentially, among various options Hugo will chose the best one the scheme which rationally the most acceptable to give more advantage and less disadvantage to the country. As much as possible he will utilize strength owned by his country prior to asking somebody to explore the oil. Perhaps if western oil company can come to the term of mutual partnership then the project will have a go.

[Hondo]

They had partnerships before and got burned. They will be wary about going back and dealing with Chavez again.

[Hondo]

I do think you can count on seeing China in there though.

[ioan]

I do think you can count on seeing China in there though.

That's what I was thinking too, you can also count on Hugo not daring to menace them ever!

[Hondo]

I think China is working on becoming a one country OPEC.

[ioan]

I think China is working on becoming a one country OPEC.

Not sure about that, more like they are making sure to diversify their oil sources now that it's very cheap again.

[Hondo]

Oil, in this day and age, is a great weapon to bend others to your will and is much cheaper than a vast, up-to-date mitlitary machine. China has the benefit of controlling their people through drastic means if necessary without having to answer to anybody. Complaints and protests roll off China like water off a duck's back. They don't care what you think of them, public opinion is nothing and there will be no public protests. I can easily see them using small military forces to control small countries, like Iran and Venezuela, once they have their foot in the door. Although I'm no geologist, I find it hard to believe China isn't sitting on top of some oil themselves.

[Mark in Oshawa]

Fiero...they may have oil there but they likely wouldn't have found it unless they have gotten smarter in the last 30 years. They needed western help to start a lot of their high tech industry and it is only in the last 15 years or so they have reached the point where they don't need western technical help. Remember...this is the nation that stole the design for a 10 year old Jeep Cherokee not 10 years ago while having a licensing agreement with the same company. They have only really started to become independent of Western help in this last decade. Of course, they are damned good damned quick...

As for Hugo. People have to learn that what Hugo did was no different than what the Red's did in the beginning of the Soviet Union. They nationalized the hard work of capitalist companies, and despite what people think of the oil companies, they are not going to play Hugo's game. They may do a deal with him but they will make damned sure they get paid up front and they will make sure THEY control the technology and keep Venezuelan's out of how some of the goodies work. They will import their staff. Hugo will have to deal with the companies on THEIR terms or there will be no deal. They are not dumb enough to get burned again.....

[SOD]

Seems ol' Hugo is soliciting western oil companies, along with China and a few others to return and get his state-owned oil industry back on track. Seems his other nationalized businesses aren't doing well either.

http://www.iht.com/articles/2009/01/15/america/15venez.php?page=1

Dear Hugo,

Nobody, including yourself, seem to ever know if you're coming or going. Maybe you thought that once the hard and expensive stuff was done, like exploration, development, and construction, you could merely swoop in and run the thing, pocketing the profits. Now you have found otherwise. While you revel in the current butt-kicking capitalism is taking right now, you should remember that capitalism is what built your industry in the first place. Now you want it back to revive and improve it. Two things:

1. If I owned an oil company, having been burned by you once, I wouldn't come back in there on a bet. Those that do will have nobody to complain to when, in 2 years, and things are going good again, you confiscate their holdings again.

2. Don't be surprised if the Exalted Transparent One doesn't try something similar with the US oil companies or tax them so heavily that oil exploration and production for US companies is no longer worth the effort.

It's the mess you created for yourself, enjoy it.

Your friend,

Fiero

P.S. That's a really snappy jacket you have on. Do you suppose you could get one for the Exalted Transparent One?



real bankers and capitalists have very short memories, LMAO.

[edv]

Hugo's big mistake was betting on oil's price to remain high. It is speculated that Venezuela's budget is based on $70 oil, rather than something more conservative, like $30. Also, many oil producing countries maintain a sovereign wealth fund to protect them from price fluctuations.
As the price of oil continues to remain low, those previously loud noises heard from Venezuela, Iran and Russia, among others, will become more and more quiet.

The 'E' in OPEC stands for Exporting. China, a voracious consumer of oil, will not become a member anytime soon.

[Hondo]

They may become exporters if they "acquire" management rights with their new partners.

[Mark in Oshawa]

Fiero...ARe you saying they will control the market by being willing to lock up supplies with exclusivity contracts and using a little nasty persuasion behind the scenes to make it happen? That may be a stretch....

[Hondo]

I'm saying it's a possibility that China would take advantage of under the right conditions. And I have no doubts they have plans to that effect they can set into motion should they so desire.

[TOgoFASTER]

Fiero...ARe you saying they will control the market by being willing to lock up supplies with exclusivity contracts and using a little nasty persuasion behind the scenes to make it happen? That may be a stretch....

Seems this game has already been afoot for years. China would be just the latest to join the club. They're just protecting their people's way of life and their children's prosperity after all. ;)

Fear the Hugo. LOL

[Mark in Oshawa]

Seems this game has already been afoot for years. China would be just the latest to join the club. They're just protecting their people's way of life and their children's prosperity after all. ;)

Fear the Hugo. LOL


That they are. It is what happens to get that protection that draws the debate....

[TOgoFASTER]

That they are. It is what happens to get that protection that draws the debate....

Indeed, but just not just with China's methods alone.

A root cause of much misery could be easily seen with open eyes.