Friday, June 29, 2007

ExxonMobil and ConocoPhillips Leave Venezuela

Chevron stays.

"Chevron Corp. is the last U.S. oil major standing in Venezuela's resource-rich Orinoco River basin after Exxon Mobil Corp. and ConocoPhillips this week refused to capitulate to new working terms imposed by Venezuela's government-controlled oil company."
Houston Chronicle

"Under Chavez, Venezuela first raised royalty and tax rates, then later assumed majority control of all oil projects as part of a larger nationalization drive of "strategic" economic sectors. Chavez says those policies are ensuring that oil benefits Venezuelans instead of foreign corporations and governments."
AP via Forbes

When certain companies can't own the resources of a foreign nation, they pack up and leave. Rather than play by the rules of the host nation, Exxon prefers the empire model. Perish the though that local people get a fair share of the benefit (profits) from the extraction of THEIR nation's natural resources.

Whatever. Nice to see Britain's BP and France's Total SA are thrilled with this new business opportunity.

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