Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Venom in Venezuela

Venezuela is waging a battle with foreign oil companies for control of its energy resources as the world's No. 5 crude exporter introduces a new form of socialism, the energy minister said on Wednesday.

"This is a battle that will take us, that is already taking us, into confrontation with the multinational interests and their lackeys in the country," Oil Minister Rafael Ramirez said at an international oil workers conference.


As dire as those words sound, one executive of a European multinational oil company recently told me that "they were making good money at $25/bbl, and a total killing at $50/bbl". The multinationals didn't set out to "rob" Venezuela and most will still make good money in spite of a "fluid" royalty structure. They will continue to do business in Venezuela as long as they can make a profit (even if it is diminished).

Not Advice

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