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Thread: Venezuela cuts off ExxonMobil

  1. #1
    Vulture of The Western World Eric's Avatar
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    Venezuela cuts off ExxonMobil

    Not good news -

    Venezuela's state oil company said Tuesday it has stopped selling crude to Exxon Mobil and has suspended commercial relations with the U.S.-based oil company.

    State-run Petroleos de Venezuela, or PDVSA, said in a statement that it "has paralyzed sales of crude to Exxon Mobil." It said the decision was made "as an act of reciprocity" for the company's "judicial-economic harassment."

    President Hugo Chavez has shaken oil markets this week with broader threats to cut off oil supplies to the United States. His threats came in response to a drive by Exxon Mobil to seize Venezuelan assets through U.S. and European courts in a dispute over the nationalization of its oil ventures in Venezuela.

    The impact of the decision on Exxon Mobil (XOM, Fortune 500) was not immediately clear. Both Chavez and Oil Minister Rafael Ramirez previously said the Irving, Texas-based company is no longer welcome to do business in Venezuela.

    One analyst said the move will have little impact on Exxon.

    "It's more or less political rhetoric," said Ruchir Kadakia, assistant director for global oil at Cambridge Energy Research Associates, who was attending an energy conference in Houston.

    Kadakia said Venezuela still needs to sell its oil to refiners geared to process it, as the oil is a heavy variety - and most of those refiners are in the United States.

    "They'll sell it to a third party that will then sell it to Exxon," he said. "It's just an attempt for Chavez to do something, being that his assets are frozen."

  2. #2
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    Re: Venezuela cuts off ExxonMobil

    OK, so they nationalize Exxon's property, and then get upset when they take steps via the Venezualan legal system to get them back?

    Chavez is a nutcase.

    Chip H.

    Former owner: 2012 Honda Civic LX, 2006 Honda Ridgeline RTL, 2000 Honda CR-V EX, 2003 MINI Cooper S, 1992 Honda Accord LX, 1999 Mercedes ML-320, 1995 VW Jetta GLX, 1991 Mercury Capri XR2, 1981 Mercury Zephyr, 1975 Chevrolet Impala

  3. #3
    Vulture of The Western World Eric's Avatar
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    Re: Venezuela cuts off ExxonMobil

    Quote Originally Posted by chiph
    OK, so they nationalize Exxon's property, and then get upset when they take steps via the Venezualan legal system to get them back?

    Chavez is a nutcase.

    Chip H.
    But he's good at flummoxing The Chimp!

  4. #4
    Senior Member grouch's Avatar
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    Re: Venezuela cuts off ExxonMobil




    Hughie is going to find out that he needs Exxon more than Exxon needs him. Exxon/Mobil is larger fiscally than many countries, including Vevezuela. I think he's just doing this for home consumption. The more promises he makes for his followers, the more he spends the countries resources for his own personal gain. (power) He may rattle on another year or two but eventually, the money well is going to run dry down there. Heaven help him if a large oil deposit is found and the price of crude drops much.
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  5. #5
    Senior Member misterdecibel's Avatar
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    Re: Venezuela cuts off ExxonMobil

    Do I hear whispers of "blockade"?

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