Venezuela Hikes Taxes on Foreign Companies

[lovuian]

http://abcnews.go.com/Business/wireStory?id=153978

CARACAS, Venezuela Oct. 10, 2004 — Venezuelan President Hugo Chavez said Sunday that taxes on foreign companies extracting heavy crudes from Venezuelan soil would be raised to 16.6 percent from less than 1 percent.

snip

Also Sunday, Chavez said that this week's high oil prices were still far below what the fair price should be: $100 per barrel.

"If the price (of oil) in 1974 was projected until today … the oil barrel should be at $100 today," Chavez said.

.........

:crazy: Well it looks like the 100$ a barrell is in the cyrstal ball for Chavez

[w4rma]

1. That's going to hurt. Bush has pissed him off, big time. (nt)

[punpirate]

3. Well, no, not exactly...

... Venezuela's extractors have to sell their oil on the open market, just like extractors from other countries. As a commodity, Venezuela's oil is not substantially different from other oils, so it will go to those that want it at a competitive price.

Oil companies will pretty much have to absorb the lower profit, or look for oil elsewhere, since the refineries won't pay more for a similar product.

Chevron Texaco, a principal extractor in Venezuela, for example, has only two choices at the moment. Pump less in Venezuela, and try to make up the shortfall by paying higher spot prices on the open market for oil from other locations, or, just as likely, try to induce the U.S. government to intervene in some way.

Chavez is playing a dangerous game here. He knows pipelines are getting blown up in Iraq regularly (despite the protestations from the Bushies that it is otherwise--the market knows what's going on) and that U.S. production will be down for months to years, given the hurricane damage to southeast coastal facilities. He also knows that the U.S. oil companies have posted record profits in the last couple of years. This tax increase comes on top of a royalty increase a couple of years or so ago, too. So, in about twenty-four months, oil companies are paying over double to the Venezuelan government that they were previously.

Chavez thinks the U.S. won't attack, or try to mount another coup. With enough pressure from oil companies, Bush might try to destabilize Venezuela, even if he loses the election. There would be time enough from November to January to pump up arms and money to Colombia to do it that way, or to try a coup similar to that accomplished in Haiti recently.

If there's suddenly a big upswing in disinformation about Venezuela, particularly as it relates to Cuba, or to Venezuela arming Colombian rebels, I think we can guess what's going on.

Cheers.

[Robbien]

4. There is a good article of what may happen

in Venezuela in The Blanket entitled "After the Referendum"
http://lark.phoblacht.net/afterreftsolo991g.html

It is one of the better articles around outlining all the mischief we are causing in South America.

[punpirate]

10. The article is yet another indication...

... of what's been done to date.

But, I wonder about the assumption that the U.S. won't do anything drastic because it needs Venezuela's oil. That didn't stop the Bushies from making a mess of the oil market through an invasion of Iraq. In fact, shortages have created, as I mentioned, record profits for the oil companies, so the presumption that Bush would act in the best interest of the nation is suspect. He doesn't do too well in that regard on his good days....

Cheers.

[aneerkoinos]

6. US is self-destroying

Chavez is helping a bit while doing the right thing for his people. Washington has already lost. It's Peak Oil time.

If US uses the Columbia route to destabilize Venezuela, Chavez will answer by declaring oil embargo, which will bring US to it's knees. No doubt he has made this clear to Washington. And Iraq has proven outright military invation can't bring the oil back home. Leaving aside the fact that US don't have troops to invade Venezuela and beat the Bolivarian revolution.

[rooboy]

2. Chavez has WMD, is planning to attack America...

and sponsors suicide bombers. Give it 3 weeks.

[ChavezSpeakstheTruth]

8. He is a dictatorial madman!

Beware - we'll all have his Bolivarian Constitution before long!

[MisterP]

12. they're already saying he supports al Qaeda...

[AP]

5. I believe 16.6% is about what every other country in the world charges

VZ had a corrupt RW gov't pass this tax law years ago as a favor to big US oil companies and one of the biggest reasons the fascists hate Chávez is because he has promissed to bring this tariff in line with what the rest of the world charges.

I believe Pallast writes about this in TBDMCB.

[ChavezSpeakstheTruth]

7. HAHAHAHAHA!!!! Chavez sticks it to the man again!

LOL

[lovuian]

9. Escalades Humvies Trucks are going down in retail price

This is going to destroy the US economy

[ausiedownunderground]

11. Chavez has one other trick up his sleeve?

Hugo Chavez has one other trick up his sleeve if he really wants to stick it to "The Bush Gang".

Venezuelan oil will be bought in EUROS, not North American Pesos!!!! Watch the value of the dollar then folks!!! You Americans will be lucky to buy anything from the rest of the world - A rather large change in your standard of living i expect!!

Also if "The Bush Gang" continues to "Piss off" Vladimir Putin watch Russia follow suit. It won't be steaks for dinner anymore but hamburger mince!

[Gyre]

13. Hugo's got nothin to worry about.

The bushco criminal gang is aiming for Syria and Iran (in that order) IF 'it' wins another term. No matter how much Hugo irritates them, switching the hemisphere of focus before WWIII has begun, would seem unlikely because they've got no excuses to attack in place, yet.

Gyre

[Carolab]

15. Gee ausiedownunderground

that's harsh. You sound gleeful. Do you think WE deserve this or something?

[FlemingsGhost]

17. Yup ... you don't need military might to tame the U.S.

Economic solidarity will do just fine.

[Carolab]

14. Looks like Hugo

has some kind of a death wish.

[FlemingsGhost]

16. Does this guy have a pair, or what?

Big fuckin' brass ones.

[geek tragedy]

18. Time to carpet bomb!

/LeMay

[Judi Lynn]

19. At the same time oil taxes are being raised:

27 AM PDT Monday
ChevronTexaco discovers natural gas in Venezuela
ChevronTexaco Corp. in San Ramon said an affiliate has found a significant amount of natural gas in Venezuela, good news for the company's efforts to develop a commercially viable natural gas resource base in the country.

The company said Monday that the discovery was made in its offshore Plataforma Deltana Loran 2X exploration well in Block 2.

The Loran 2X well encountered five gas sand intervals for a total gross thickness of 494 feet.

George Kirkland, president of ChevronTexaco Overseas Petroleum, said "The confirmation of the Loran field discovery could go a long way toward developing a commercially viable natural gas resource base in Venezuela, which would align with our strategy to grow an integrated global gas business. This success underscores our corporate exploration strategy of focusing on core, high-impact opportunities and builds on our other recent exploration successes in Australia, Nigeria and Angola."
(snip/...)

http://eastbay.bizjournals.com/eastbay/stories/2004/10/11/daily3.html

[IndianaGreen]

20. Chavez has funneled oil revenues to build clinics, schools, roads

In essence that is Chavez's crime in the eyes of the Caracas elites, that he cares about the majority poor than he cares about the minority rich. This is also why our own elites, represented by the likes of Bush and Kerry, want to replace Chavez with one of their chums in the Miami exile community.

Way to go, Hugo!

[ladybugg33]

21. God, don't we just hate it when "socialism" might work?

This man must be a 'terrorist' and evil since he wants to help the poor in his country at the expense of the corporations.