Under the radar. This is not good and as always we consumers pay at the pump as the big corpsgov play.
Exxon Mobil has gone after the assets of state oil company Petroleos de Venezuela SA in U.S., British and Dutch courts as it challenges the nationalization of a multibillion dollar oil project by Chavez’s government.
A British court has issued an injunction “freezing” as much as $12 billion in assets.”
If you end up freezing (Venezuelan assets) and it harms us, we’re going to harm you,” Chavez said during his weekly radio and television program, “Hello, President.” “Do you know how? We aren’t going to send oil to the United States. Take note, Mr. Bush, Mr. Danger.”[.]
Reuters has more:
Oil firms watchful as Exxon fights nationalization
NEW YORK (Reuters) – Oil majors under pressure from a wave of resource nationalism worldwide are likely to remain on the sidelines of Exxon Mobil Corp’s legal fight with Venezuela before launching into a similar battle.
The biggest U.S. company won court orders to freeze up to $12 billion of the OPEC nation’s oil assets around the globe as it fights for compensation for a project lost in President Hugo Chavez’s nationalization drive.
“I think the simple answer is, other companies are going to watch and wait and see if this approach of Exxon’s is effective,” said Mike Wittner, analyst with Societe Generale in London.Countries with large hydrocarbon reserves from Bolivia to Ecuador to Russia have been adjusting terms along with the surge in oil prices, which jumped from $10 a barrel in 1999 to a record $100 a barrel in January.
With fierce competition for limited global oil reserves, many companies operating in Venezuela have been more amenable to the changes in project terms.
Exxon, which had a smaller percentage of worldwide production in Venezuela than other majors such as ConocoPhillips (COP.N: Quote, Profile, Research), is renowned for fighting claims against it, such as the lawsuit following the 1989 Exxon Valdez spill in Alaska. [.]
We may see rations if Chavez makes good his threat. Yes he has made these threats before but Exxon’s move may trigger a calamity.
There’s no excess capacity to make up for any shortfall in supplies.
Feb. 11 (Bloomberg) — Crude oil rose for a third day in New York after jumping more than $3 a barrel on Feb. 8 on forecasts of reduced output from the North Sea and Nigeria.
does not factor in the Venezuela threat.
