Looks like Conoco, Exxon and other oil companies are getting hammered by countries like Venezuela, Russia and Nigeria and it's eating into their profits. http://www.washingtonpost.com/wp-dy...06/26/AR2007062602061.html?hpid=moreheadlines How much of an issue is this for American oil companies? Will it effect performance significantly? Is this another sector that may stagnate as they are dependent on much-harder-to-find domestic oil sources?
I love this quote from the article: "State Department spokesman Tom Casey said: "The government of Venezuela, like any other government, has the right to make these kinds of decisions to change ownership rules. We want to see them meet their international commitments in terms of providing fair and just compensation."" I guess our State Department spokesman Tom Casey has not heard of property rights. These 2-bit dictators seize assets that don't belong to them, and then get a statement like this. Ask yourself how long companies will be willing to invest billions to look for and produce oil when the outcome is uncertain. OldTrader
. Maybe if the oil companies had been more honest and fair about their exploitation of other countries natural resources, there wouldn't be such a backlash against them in places like Venezuela, Bolivia or Nigeria
Exploitation??? Do you think Nigeria or Bolivia would be capitalizing on their natural resources if it were not for American oil companies going in there to extract it in the first place?
Maybe they never wanted to be selling natural resources, or exploiting them at all. Maybe they wanted to farm, or hunt and fish. Oil companies are not exactly people friendly or environment friendly when they go into places like that. They go in and do whatever it takes to make the bucks and they screw with the people and the environment bigtime.
Yes, and oil would be paid for in euros or yuan, same as logging , mining and agriculture profits. That's assuming they wouldnt accept magic beans, wampum or bits of paper full of empty promises instead. Maybe OT, but there it is.
Why not??? Many countries have done it without selling their soul to mega corporations. Norway and Mexico being the two that come to mind. Also, itis very interesting what the Norwegian gov. is doing it with the $$$$$. Google it,very interesting read.