Hugo Chavez cuts off Exxon Mobil. This in response to Exxon suing Venezula for the seizing its assets inside the country. This being a legal challenge to Chavez government's nationalization of one of four heavy oil projects in the Orinoco River basin, one of the world's richest oil deposits.
Bloomberg.com reports the real news as this:
Irving, Texas-based Exxon Mobil, the world's biggest oil company, obtained court orders in the U.S., the U.K., the Netherlands and the Caribbean during the past seven weeks freezing more than $12 billion in Petroleos de Venezuela assets worldwide.
Exxon Mobil, which pumps more oil than every member of OPEC except Saudi Arabia and Iran, sought the orders to prevent Venezuela from shifting assets to countries out of reach of an international arbitration panel considering Exxon Mobil's demand for $12 billion in compensation.
Or as the Washington Post said:
"So far, however, Chavez has done little. The reason: As much as the world needs oil, Venezuela needs customers and investors."
The big move by Chavez beyond baring Exxon from doing business inside Venezula is running print and television ads claiming: "Exxon turns oil into blood!"
Which makes me ask the simple follow up question. So what is Chavez doing by selling to Exxon everywhere but Venezula? And then again - how is it any different now that Exxon is openly criticising Chavez than before? Third world posturing is such a joke.
Two of my favorite things. Socialist dictators proving that they can't manage much of anything especially large state guided enterprise and America's energy needs moving farther away from tyrants (even if it is just a superficial move).
A few articles cover the subject (and I'm sure that a parade of comment will come forward later this week). CNN is my first source, the Washington Post is better, and the best is Bloomber.com's analysis complete with the production numbers of what Chavez's management has accomplished.
Another interesting article is one from Voice of America about the robust gasoline smuggling across Venezula's boarder into Columbia. Turns out its a real business to continually drive cheap below market Venezualian gasoline into Columbia, drain the vehicles tank for cash, drive back across the border and do it all over again. Interesting story.
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