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CARACAS, Venezuela — President Hugo Chavez on Sunday threatened to cut off oil sales to the United States if Exxon Mobil Corp. wins court judgments to seize billions of dollars in Venezuelan assets.
"If you end up freezing (Venezuelan assets) and it harms us, we're going to harm you," Chavez said, directing his words to U.S. President George W. Bush. "Do you know how? We aren't going to send oil to the United States. Take note, Mr. Bush, Mr. Danger."
Exxon should win, Chavez basically seized the assets and established the price. Shift the oil sources, it is all fungible. Chavez (thankfully) will soon be history as a meaningful leader.
Exxon should win, Chavez basically seized the assets and established the price. Shift the oil sources, it is all fungible. Chavez (thankfully) will soon be history as a meaningful leader.
Thank you Venezuelian citizens.
Chavez offered compensation that was declined by Exxon. I am trying to location better information on what the amount of the compensation was, but there isn't much out there on it just yet. (lack of Britney Spears in the by-line I guess)
Considering the relationship with Iraq which is starting their Oil Bourse this week or next, there seems to be a bit of an economic war against the petro-dollar taking place. I suspect the combined efforts of Iran and Venezuela will have a tangible effect on oil prices, but to what extent is hard to say.
As to whatever happens between the injunction and amount of compensation given to Exxon, I doubt they will have a continued presence in Venezuela. The little I have read on this, I have come across several articles in various places stating that Exxon is quite heavy handed in ruthless in protecting what it sees as its interest and it matters not if their opposition is a group of fishermen, environmentalist , other corporations, or even governments.
Chavez offered compensation that was declined by Exxon. I am trying to location better information on what the amount of the compensation was, but there isn't much out there on it just yet. (lack of Britney Spears in the by-line I guess)
Considering the relationship with Iraq which is starting their Oil Bourse this week or next, there seems to be a bit of an economic war against the petro-dollar taking place. I suspect the combined efforts of Iran and Venezuela will have a tangible effect on oil prices, but to what extent is hard to say.
As to whatever happens between the injunction and amount of compensation given to Exxon, I doubt they will have a continued presence in Venezuela. The little I have read on this, I have come across several articles in various places stating that Exxon is quite heavy handed in ruthless in protecting what it sees as its interest and it matters not if their opposition is a group of fishermen, environmentalist , other corporations, or even governments.
I am the LAST person to defend Exxon, but Chavez is one of the few who make me Exxon sympathetic. If he wanted to force a sale, he had multiple ways of doing this, what he did is equivalent of me going up to your house and demanding you turn it over to me at my stated price. Where was an international appraisal of fair market value, that could be used as a starting point in negotiations?
Every business has a value, and there are multiple ways to calculate this. But don't bother trying to find Chavez's baseline analysis of the market value, it was simply a declaration.
I am the LAST person to defend Exxon, but Chavez is one of the few who make me Exxon sympathetic. If he wanted to force a sale, he had multiple ways of doing this, what he did is equivalent of me going up to your house and demanding you turn it over to me at my stated price. Where was an international appraisal of fair market value, that could be used as a starting point in negotiations?
You can't be against that... the U.S. government does this all the time with imminent domain. What we do ourselves, we can't say other countries can't do.
Quote:
Every business has a value, and there are multiple ways to calculate this. But don't bother trying to find Chavez's baseline analysis of the market value, it was simply a declaration.
Thats the risk of doing business internationally. Exxon knew the risk and they lost. So be it.
You can't be against that... the U.S. government does this all the time with imminent domain. What we do ourselves, we can't say other countries can't do.
Thats the risk of doing business internationally. Exxon knew the risk and they lost. So be it.
Nonsense X 2.
We do not take property all the time, without independent appraised value.
Doing business internationally does not mean they take your assets at their declared price. Only a nation with a remarkably short sighted leader would do this, unless they had the leverage (Putin) to pull it off without financial retribution. Chavez ain't that powerful, as he is about to discover.
I am the LAST person to defend Exxon, but Chavez is one of the few who make me Exxon sympathetic. If he wanted to force a sale, he had multiple ways of doing this, what he did is equivalent of me going up to your house and demanding you turn it over to me at my stated price. Where was an international appraisal of fair market value, that could be used as a starting point in negotiations?
Every business has a value, and there are multiple ways to calculate this. But don't bother trying to find Chavez's baseline analysis of the market value, it was simply a declaration.
I would like to know what was offered as well. I suspect it likely favored Venezuela obviously, but just for the sake of argument, what if Chavez offered what could be deemed, "a fair market value"? Now if it is ruled in Exxon's favor and Venezuela is forced to cough up the amount, what effects will this have in the US being Venezuela supplies like 12-14% of our oil.
I would like to know what was offered as well. I suspect it likely favored Venezuela obviously, but just for the sake of argument, what if Chavez offered what could be deemed, "a fair market value"? Now if it is ruled in Exxon's favor and Venezuela is forced to cough up the amount, what effects will this have in the US being Venezuela supplies like 12-14% of our oil.
Exxon was arguing for fair market value in court, Chavez finds this inconvenient:
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