| Chevron and the group of oil companies it is leading | | | | their economic and political structure. When that runs |
| have just been granted a concession to extract oil in | | | | out the whole lot can come down like pack o cards. |
| the Orinoco Belt, that with an estimated recoverable | | | | The pack of cards has been looking very flimsy for |
| 513 billion barrels of oil, is probably the largest oil | | | | some time now. Power cuts are an everyday |
| reserves in the world. | | | | occurrence, as water rationing is beginning to be. Food |
| This grant comes after years of heavy handed | | | | and essential supplies are unavailable (mostly imported |
| treatment by Mr. Chavez (the "Mr." is a concession to | | | | anyway). |
| politeness), to foreign companies in Venezuela and | | | | So things are looking bad and Venezuela has been |
| especially to American companies. Sometimes | | | | wooing some American companies as Mr. Chavez |
| memories are vague, but Mr. Chavez is a bad replica | | | | has need of money and Venezuela has not been very |
| of "he who must not be named" and once stated that | | | | efficient with their oil industry. He may be exceedingly |
| there was a smell of sulfur in the air referring to | | | | verbose and loves hugging the limelight in his messianic |
| President Bush. He has insulted heads of state with | | | | style, but when the chips are down and he needs |
| delightful regularity on the one hand, while on the other | | | | money, he changes his tune. |
| forging international relationships with Iran and Russia. | | | | So there should be no surprises for anyone. After all |
| For the last eleven years Venezuela has been | | | | he may be many things but stupid he is not. |
| nationalizing and expropriating companies, both foreign | | | | From the point view of the oil companies it should not |
| and local alike; left, right and center. | | | | be a surprise either. Their interests are quite clear and |
| There must be some area of the economy that hasn't | | | | this concession will put Chevron and its partners in |
| been hit. Perhaps, but in the meantime he has | | | | very good standing with their shareholders. |
| nationalized, expropriated or closed down hotels, | | | | This appears to be the short term view. |
| television stations and other media related companies, | | | | In the longer term, and unless they are foreseeing |
| companies in the cement area, the food industry, and | | | | other scenarios, there should be no surprises when Mr. |
| more. | | | | Chavez's verbosity gets the better of him. |
| So what has changed? | | | | This is probably a simplistic point of view, and after all |
| He is in trouble. Venezuela depends on oil revenue and | | | | international politics is always about benefits and self |
| they have mismanaged with colossal inefficiency just | | | | interest, but why would an American company want |
| about everything they could possibly do. And the | | | | to fund, and therefore extend a life line, to a self |
| whole 21st century socialism needs enormous | | | | proclaimed enemy of what he calls the "evil empire". |
| amounts of cash to subsidize, control and manipulate | | | | |