Under the title "Venezuela seizes last private oil fields in challenge to multinationals," we find that "deals" are being made.
Making deals: While the state takeover had
been planned for some time, BP PLC, ConocoPhillips, Exxon Mobil Corp.,
Chevron Corp., France’s Total SA and Norway’s Statoil ASA remain
locked in a struggle with the Chavez government over the terms and
conditions under which they will be allowed to stay on as minority
All but ConocoPhillips signed agreements last week agreeing in
principle to state control, and ConocoPhillips said yesterday that it
too was cooperating.
So which is the truth? Seizure, or "deals?"
The companies have leverage with Chavez because experts agree that Venezuela’s state oil company, Petroleos de Venezuela SA, cannot transform the Orinoco’s tar-like crude into marketable oil without their investment and experience.
"They’re hoping … that as time passes Chavez will
realize he needs them more than they need him," said Michael Lynch, an
analyst at Winchester, Mass.-based Strategic Energy and Economic
Research. He predicted most oil companies — with the possible
exception of Exxon Mobil — would stay.
Fools. Of course he needs them more. That’s the case with all capitalist enterprise from top to bottom and wall to wall. The State doesn’t produce anything. It is a parasite on the whole endeavor. The oil companies don’t need Chavez at all. Chavez, of course, needs them — everybody needs them — but he’s got other options because values like freedom, property, prosperity, and happiness mean nothing to him.
He’s just gambling that this will "work out" and that it’ll
strengthen and consolidate his power. And if it doesn’t? Who do you
suppose will get the blame on the streets in Venezuela? Chavez, or the
International oil companies?
Well, in terms of "feasibility" and "efficiency," it’s hard to beat stealing.