Venezuela's Opec stand is a win for climate change campaigners
Venezuela's Opec stand is a win for climate change campaigners
Environmentalists who support developing countries' fight against polluters should also back their struggle for control of oil
Mark Weisbrot
guardian.co.uk, Friday 2 March 2012 17.54 EST
Environmentalists seem to realize that they have some stake in a fight such as the Ecuador-Chevron lawsuit. That case, which Chevron has recently moved to an international arbitration panel in an attempt to avoid a multibillion penalty handed down by Ecuadorian courts, is about whether a multinational oil corporation will have to pay damages for pollution for which it is responsible. Most environmentalists figure that would be a good thing.
But what about fights between multinational oil giants and the governments of oil-producing states over control of resources? Do people who care about the environment and climate change have a stake in these battles? It appears that they do, but most have not yet noticed it.
In December of last year, Exxon Mobil won a judgment against the government of Venezuela for assets the government had nationalized in 2007. The award was actually a victory for the government of Venezuela: Exxon had sued for $12bn, but won only $908m. After subtracting $160m the court said was owed to Venezuela, Exxon ended up with a $748m judgment. The ruling was made by an arbitration panel of the International Chamber of Commerce (ICC). On 15 February, Venezuela paid Exxon $250m and announced that the case was settled.
Some background: the dispute arose out of the Venezuelan government's decision to take a majority stake in oil extraction, in accordance with its law. In 2005, it entered into negotiations with foreign oil companies to purchase enough of their assets in order to achieve a majority stake. Almost all the negotiations, with dozens of companies, were successful – with only Exxon and ConocoPhillips going to arbitration (Conoco is still negotiating).
More:
http://www.guardian.co.uk/commentisfree/cifamerica/2012/mar/02/venezuela-opec-stand-win-climate-change