Breaking News: Exxon Mobil “No Longer Welcome” in Venezuela
The world’s larges oil corporation, Exxon Mobil, is no longer welcome to do business in Venezuela.
This follows from a lawsuit in which Exxon convinced international courts to freeze $12 billion USD in assets of Venezuelan oil company, PDVSA–ten times their original investment, according to the the Venezuelan Minister of Energy and Petroleum and President of the Venezuelan state oil company PDVSA, Rafael Ramírez.
US foreign interference for oil has been a disaster in Venezuela, albeit not as impressively thorough a disaster as in the Middle East. Under economic threat from the US and Exxon, Venezuela has been pushed to a position never before considered: cutting off oil not only to Exxon, but to the entire United States.
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How has the US threatened Venezuela’s security?
Exxon Mobil spokeswoman Margaret Ross declined to comment on Venezuela’s move to cut off the oil giant, but she is quoted on CNN as saying, “it is our long-standing practice to take appropriate steps to meet our customers’ needs.”
Indeed, it has been the long-standing practice of the US government as well to take steps–appropriate or othersise–to meet US demand for Venezuelan oil, which accounts for 12% of US oil imports.
- April, 2002: Fearing an Arab oil embargo, Washington sees an advantage in securing Venezuela’s massive oil reserves. Analysts suspect the Bush White House of covertly supporting a coup to replace Hugo Chavez with US-friendly, Pedro Carmona. The coup fails when massive popular outcries return Chavez to the presidency.
- November, 2007: Venezuelan intelligence confiscates a CIA memo detailing psyop plans to provoke a general uprising in Venezuela to destabilize the country if Chavez’s social programs bill were to pass. The plans went under the code name “Operation Pliers.”
- February, 2008: US Director of National Intelligence Mike McConnell fuels public animosity toward Venezuela, calling the country one of a “small group of radical populist governments.” Statements like these have thus far succeeded in eliciting mutual tongue lashings between US and Venezuelan leaders. However, such “axis of evil” talk also paints Venezuela as an enemy and a military target in public opinion by confusing Venezuela with other US military targets.
- February 14, 2008: The US officially backs Exxon Mobil in its contest to win the $12 billion USD in oil money from Venezuela. At issue is Exxon’s refusal to accept the terms of PDVSA in oil exploration in the forested Orinoco River Basin. President Chavez interprets the US stance as further attempts to create political instability.
Where does Venezuela stand now on US oil imports?
At the time of the coup, President Chavez sent a note to the White House with assurances that Venezuela would never join an oil boycott against the US. And after Hurricane Katrina, Venezuela even offered 1 million USD in fuel and aid to victims.
Now, with Exxon Mobil’s lawsuit poised to drain the country of billions of dollars, Venezuela seems to have had enough. Already, on Tuesday, they have announced that Exxon is no longer welcome to do business in Venezuela.
But President Chavez also warned that if the courts favor Texas-based Exxon, Venezuela is prepared to cut off oil exports to the entire United States.
Great. But what can I do?
As relations continue to look dismal between the bright sparks in charge of running the White House, Exxon Mobil, and Venezuela, the average person has the choice to turn the tables. With a single action, we can erase the motives for conflict over oil.
Simply put, we can choose to consume less of it.
Next, we’ll look at how public opinions on the ground in the US and Venezuela are shaping the country’s politics and how politics are shaping public opinions.
References and Resources:
Exxon Mobil cut off from Venezuela’s oil | CNN
Exxon will Never Again Steal from Venezuela Says Chavez | Venezuelanalysis
U.S. backs Exxon in Venezuela assets battle | Yahoo!
CIA Operation “Pliers” Uncovered in Venezuela | Centre for Global Research
History of US interventions in Latin America (partial history) | Truman State University
The essential problem is, that like drug addicts we need this stuff so badly that we will do almost anything to get it.
And just like a drug producer, some oil rich nations have been using the proceeds of our habit to achieve dubious aims also.
It’s a habit that we need to kick, but addiction rarely has a simple solution.
Thanks for publishing that Gav. We need to get out of our cars here as much as where you are.
Here in Venezuela, less foreign oil exploits mean more internal revenue, wich means an investment in weening the Venezuelan economy off of oil, (thanks entirely to the Chaves born Bolivarian Revolution.)
Moves such as this have done wonders for the Venezuelas´ ability to invest in the public interest. The refusal to comply with the world banks expoloitive loan terms a couple years back has alowed chavez to pay off the national debt entirely, funded thousands of small scale business and cooperative loans thereafter, and has funded govornment projects such as a cross country bullet train and electric trollies in all major cities. (by the way, nearly all electricity here is created by an eco-freindly partial daming of the Orinoco river.) PDVSA also funds constant research into cleaner gas. (What in the U.S. they call “regular” is prohibited here. We have 91 and 95 octane. 95 octane is not yet available in the U.S. and has been on the market here for years.)
Enough said. Go Obama.
A note from Mèrida, Venezuela
Thats the best thing they could have done for us. The more they and others deny the USA foreign, the faster we will work to eleminate our dependency on fossil fuel.
We have a oilman Texan as a leader now. Is it any wonder? If GB would get off of his butt and encourage alternative fuels we wouldn’t have a serious problem with energy in this country. That will never happen because this administration knows who butters its bread.
We need more countries to deny us oil.
Let’s not forget that Exxon and the other oil companies developed the Orinoco Valley under contract and that Hugo chose to default on that contract and basically steal the investment of these companies by nationalizing their work. Most people would define it as stealing, anyway.
Hugo’s big adventure is not sustainable. Capitalism created the big pie, upon which he is munching. It’ll be gone soon enough and when Hugo can’t buy his popular support anymore he’ll impose it with the army. Brain-drain is in process because the people who actually built their own wealth in Venezuela can see the writing on the wall and know that when the big companies like Conoco and Exxon are depleted Hugo will come for their wealth also; to continue buying support from the masses with money he did nothing to earn.
When there is no longer reward for risk, investment, innovation and hard work only those who eschew these qualities will remain. Such a system fails every time it is tried. He is on path for a melt-down of Ayn Rand proportions.
http://rationalenvironmentalist.com
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