- Since the Bush administration took office in January
2001, it's targeted Hugo Chavez relentlessly. From the aborted two-day
April 2002 coup attempt to the 2002-03 oil management lockout to the failed
2004 recall referendum to stoking opposition rallies against the constitutional
reform referendum to constant pillorying in the media to funding opposition
candidates in elections to the present when headlines like the Reuters
February 7 one announced: "Courts freeze $12 billion Venezuela assets
in Exxon row." Call it the latest salvo in Bush v. Chavez with ExxonMobil
(EM) its lead aggressor and the long arm of the CIA and Pentagon always
in the wings.
-
- EM temporarily won a series of court orders in Britain,
New York, the Netherlands and Netherlands Antilles to freeze up to $12
billion of state-owned PDVSA assets around the world. Hugo Chavez called
it Bush administration "economic war" against his government.
Energy Minister and PDVSA president, Rafael Ramirez, said it was "judicial
terrorism" and that "PDVSA has paralyzed oil sales to Exxon (and)
suspend(ed) commercial relations" in response to actions it "consider(s)
an outrage....intimidating and hostile."
-
- PDVSA's web site went further. It explained that the
company will "fully honor existing contractual commitments relating
to investments in common with ExxonMobil on the outside, reserving the
right to terminate those contracts" under terms that permit. This
likely refers to a Chalmette, Louisiana joint venture between the two companies
that refines 185,000 barrels of oil daily into gasoline. It also reflects
a commitment to supply 90,000 barrels of oil daily to Exxon that continues
unaltered.
-
- EM sought the injunctions ahead of an expected International
Centre for Settlement of Investment Disputes (ICSID) arbitration ruling.
It's over a compensation claim owed Exxon after Venezuela nationalized
its last privately-owned oil fields last May in the Orinoco River region.
PDVSA now has a majority interest, Big Oil investors have minority stakes,
but the government offered fair compensation for the buyouts. Chevron,
UK's BP PLC, France's Total SA and Norway's Statoil ASA agreed to terms
and will continue operating in the country.
-
- ExxonMobil and ConocoPhillips balked, and it led to the
current action. In Exxon's case, it refused a generous settlement offer
for its 41.7% stake, but that's the typical way this bully operates. The
company is the world's largest, had 2007 sales topping $404 billion, it's
more than double Venezuela's GDP, and it places EM 25th among world nations
based on World Bank GDP figures.
-
- It's too early to predict what's ahead, but one thing
is sure. As long as George Bush is president, he'll go after Chavez every
way possible with one aim in mind - to destabilize the country and remove
the Venezuelan leader from office. Once again, battle lines are drawn as
the latest confrontation plays out judicially, economically and geopolitically.
The stakes are huge - the most successful democracy in the Americas and
the "threat" of its good example v. the world's most powerful
nation and biggest bully.
-
- The next judicial hearing is on February 22, but it's
unclear where things now stand with Exxon and the Chavez government having
different views. The oil giant claims PDVSA's assets are frozen, but on
February 9 Minister Ramirez denied it saying: "They don't have any
asset frozen. They only have frozen $300 million" in cash through
a New York court. On February 13, it heard the case, and to no one's surprise
affirmed the freeze until a final arbitration settlement is reached. PDVSA
has no "assets in that jurisdiction (or in Britain) that even come
close to those" billions that are about 16 times the value of Exxon's
Venezuelan $750 million investment.
-
- Ramirez also added that EM's action is a "transitory
measure" while PDVSA pressed its case in New York and will do it again
in London. The current status has no "affect on our cash flow (or)
operational situation at all." Exxon wants to undermine the government
and "create a situation of anxiety in the country, a situation of
nervousness."
-
- Ramirez expressed confidence that his government will
prevail. It's arbitrating fairly, offered just compensation, and that in
the end may defeat the latest Bush administration assault against the right
of a sovereign state to its own resources. He also explained that Exxon
violated ICSID arbitration proceedings by seeking separate court orders,
and that PDVSA is considering a response. It may sue the oil giant for
damages that caused Venezuela's dollar-denominated bonds to record their
biggest drop in six months on the prospect of a long legal battle.
-
- On February 8, PDVSA declared its position on its web
site to put the facts in context, clarify the situation, and dispel how
the dominant media portrays it ExxonMobil's way. Below is a summary.
-
- The company states it's been "in arduous level agreements
and negotiations with" its joint venture partners - "Total, Statoil,
(Italy's) ENI, ConocoPhillips, Petrocanada, (China's) CNPC, Petrochina,
(Venezuela's) Ineparia, British Petroleum (and) Exxon Mobil." The
US giant is the "only case in which we have a clear situation of conflict"
so it was "envisioned that these strategic issues....could be settled
in international (arbitration) tribunals." It appears that agreement
has been reached or "in the process of agreeing" with every company
(including ConocoPhillips) except ExxonMobil, and the situation with them
is this: "this company has not complied with the terms of arbitration....and
introduced an arbitration against the Republic (in) the International Centre
for Settlement of Investment Disputes (ICSID)."
-
- PDVSA awaits its ruling "which, we are confident,
will promote the interests of the Republic." In addition, Exxon sued
PDVSA. As a result, "we see a clear position (of this company) to
go against the sovereign interest of an oil-producing country such as Venezuela,"
deny its legal right to its own resources, and get overt US backing for
it from State Department spokesperson Sean McCormack saying: "We fully
support the efforts of ExxonMobil to get a just and fair compensation package
for their assets according to the standards of international law"
that Washington defiantly trashes.
-
- PDVSA's statement explained that the national media have
"such ignorance of the situation (by reporting that) our company has
(assets of) 12 billion dollars (frozen and) that is completely untrue....we
do not have any court decision that is final with respect to all of our
assets. We have an interim measure in a court in New York, we have the
right - and so we are going to....respond. This is a transitional measure
while (PDVSA) presents its case; defend(s) ourselves....defend(s) the interests
of the Republic and we are confident we will remove this measure."
-
- Exxon also got injunctions in London and the Netherlands.
"I must report we have no assets in those jurisdictions...."The
same status is true for the Netherlands Antilles" where another injunction
was gotten.
-
- "We are no longer surprised (about) the attitude
of ExxonMobil, as it is the typical American transnational company which....historically
has tried to attack the oil-producing countries and impose their views
on the management of (their) national resources....On behalf of workers
and our oil industry, we are not going to (be) frightened, intimidated,
or retreat in the sovereign aspirations of our people to manage their natural
resources."
-
- We must "warn our country because they could continue
this type of action....the position of our people and our Government is
firm in defence of our decisions." We will defend our interests. We
won't "yield to this (action), we will defeat them (on the) ground(s)
that (are) raised...."
-
- In a February 12 interview, Ramirez repeated Hugo Chavez's
message two days earlier on his weekly Sunday television program, Alo,
Presidente: "If you end up freezing (our assets) and it harms us,
we're going to harm you. Do you know how? We aren't going to send oil to
the United States. Take note, Mr. Bush, Mr. Danger....I speak to the US
empire, because that's the master: continue and you will see that we won't
send one drop of oil to the empire of the United States....The outlaws
of ExxonMobil will never again rob us....If the economic war continues
against Venezuela, the price of oil is going to reach $200 (a barrel) and
Venezuela will join the economic war....And more than one country is willing
to accompany us in the economic war."
-
-
-
- PDVSA spokesperson, Eleazar Diaz Rangel, then said on
Latest News on February 12 that "we are ready" to stop supplying
oil to the US if their hostile actions continue. He explained that Washington
is waging economic war, and Venezuela is seeking to develop new customers
like China. He added that the cash flow of the company is sound because
it's based on daily crude oil sales.
-
- On February 12, Venezuela's deputy oil minister, Bernard
Mommer, said on state-owned Venezolana de Television that Exxon knows it
will lose in arbitration and its "maneuver represents a way to intimidate"
other countries against standing up to its will. It's trying to "create
panic and anxiety with the banking and the oil sector."
-
- Venezuela is America's third or fourth largest oil supplier
after Canada, Saudi Arabia and at times Mexico. It accounts for between
10 to 12% of US imports and averages around 1.2 million barrels a day,
sometimes as much as 1.5 million. PDVSA's assets total around $109 billion,
according to its web site. It calls itself "the most creditworthy
company in Latin America" which is likely considering its enormous
oil reserves and at their current elevated prices.
-
- Views from the US Media
-
- It's no surprise how the US media portray Chavez and
the Exxon dispute. Bloomberg.com called it his way to use the "Exxon
Battle to Stoke Anti-US Sentiment" as though he's the aggressor and
poor USA and giant Exxon his victims.
-
- Then, there's the Washington Post's editorial view on
February 15. It's astonished that "Mr. Chavez himself threatened to
cut off exports of crude oil to America" over Exxon's having "moved
to freeze" its assets. It lamentes how "regrettable" the
US "voracious consumption of oil" is because it "underwrites
Venezuela's Chavez regime....If the Bush administration were really as
committed to overthrowing Mr. Chavez as Mr. Chavez claims (it ought to
boycott) Venezuelan oil (to) devastate" its economy. "Two cheers
for ExxonMobil. In standing up to Mr. Chavez through 'peaceful, legal means,'
it has once again exposed the hollowness of the anti-imperialism with which
he justifies his rule."
-
- The Chicago Tribune was just as hostile by asking "Where
is the king of Spain when we need him?" Chavez "says the 'bandits'
at Exxon are trying to rob Venezuela. From where we sit, it looks like
the other way around."
-
- Then there's the Houston Chronicle in Exxon's home city.
It blasted Chavez for "making a fool of himself on the floor of the
UN General Assembly last year," called him a "clown," and
said "his buffoonery is neither amusing nor benign." Ignoring
Exxon's shenanigans in cahoots with Washington, it stated that Chavez "was
in full bluster (and that he) and his henchmen (were launch(ing) a war
of words in response (that is) little more than political theater, sound
bites for the loyalists back home, and You Tube fodder abroad."
-
- This type bluster gets supplemented with outrageous comments
about how Chavez "seized power," shuts down his opposition, control's
Venezuela's media, took over American oil fields, is a "destructive
menace" to the region, and even worse a communist and a dictator with
a terrible human rights record. Is it any wonder that Americans know almost
nothing about Venezuelan democracy and the man who shaped it for the past
nine years. Under his leadership, it's the real thing, is impressive and
improving. Compare it to America where "The People" have no say,
democracy is nowhere in sight, and under the Bush administration it's pretense,
lawless, and corrupted.
-
- What's Going On and What's At Stake
-
- Throughout most of the last century, and especially post-WW
II, America's international relations have been appalling and destructive.
It's the world's leading bully, it practices state terrorism, disdains
democracy, defiles the rule of law, tramples on human and civil rights,
demands unquestioned obedience, and rules by what Noam Chomsky calls "the
Fifth Freedom" that shreds the other four: to "rob, to exploit
and to dominate society, to undertake any course of action to insure that
existing privilege is protected and advanced." Outliers aren't tolerated,
national sovereignty is sinful, independence is a crime, and dare disobey
the imperial master guarantees certain punishment.
-
- William Blum documented the history in three editions
of his book, "Rogue State." He wrote: "Between 1945 and
2005 the United States has attempted to overthrow more than 50 foreign
governments, and to crush more than 30 populist-nationalist movements struggling
against intolerable regimes. In the process, the US has caused....several
million (deaths), and condemned many millions more to a life of agony and
despair." Washington won't tolerate nations that won't:
-
- -- "lie down and happily become an American client,"
-
- -- accept free market capitalism and today's steroid-enhanced
neoliberal version that's even more predatory,
-
- -- sacrifice its peoples' welfare for ours,
-
- -- "produce primarily for export,"
-
- -- allow dangerous environmental dumping on its soil,
-
- -- surrender to IMF, World Bank, WTO and international
banking rules; accept exploitive structural adjustments and debt slavery
as a way of life;
-
- -- relinquish control of its natural resources, especially
if they're large oil and gas deposits,
-
- -- surrender all freedoms and call it democracy,
-
- -- permit US military bases on its soil, and
-
- -- agree unquestionably to all other imperial demands.
-
- Countries unwilling to oblige are called "bad examples
(and) reduced to basket cases." In addition, their leaders are replaced
by "friendlier" ones. It's an ugly story of the rich against
the poor, the monied interests against all humanity, and if outliers are
tolerated, they'll be "bad examples" for others to follow.
-
- Chavez became one of them after his 1998 election. Ever
since, he's been a thorn in America's craw and its greatest threat - a
"good example" that's a model for other nations. He also inspires
social movements throughout the Americas, even though none so far are dominant
or even even close, and he shows signs of wavering on some of his earlier
commitments. More on that below.
-
- Imperialism is safe in the Americas, and James Petras
explained it in his new article: "Movements in Flux and Center-Left
Governments in Power." He states: "The singular fact about Latin
America is that, despite a number of massive popular upheavals, several
regime changes and (some ascendant) mass social movements, the continuity
of property relations remains intact." In fact, they're more concentrated,
"giant agro-mineral export enterprises" are prospering, and "class
structure (and) socio-economic inequalities" persist, even though
Hugo Chavez stands out, in part, as an exception. Petras calls him "pragmatic."
-
- He "reversed (some of) the corrupt privatizations
of previous rightest neo-liberal regimes," but still supports business.
Nonetheless, Washington sees him as a threat because he embraces participatory
democracy, practices redistributive social policies, and envisions a "new
socialism of the 21st century....based in solidarity, fraternity, love,
justice, liberty and equality." Those ideas and his expressive language
are anathema to America and its hard line neoliberal model.
-
- As a result, he tops George Bush's target list outside
the Middle East, and that status won't change under a new administration
in 2009, especially if a Republican heads it. But even Democrats are hostile.
When candidates discuss Latin America, Chavez is Topic One and their comments
aren't friendly.
-
- Earlier (but no longer), John McCain's web site was outrageous.
It featured a petition to "stop the dictators of Latin America"
and supported ousting Chavez "in the name of democracy and freedom
throughout the hemisphere." He lashed out at a news conference in
Miami's Little Havana stating that "everyone should understand the
connections" between (Bolivia's) Evo Morales, Castro and Chavez. "They
inspire each other. They assist each other. They get ideas from each other.
It's very disturbing." He also calls Chavez a "wacko" and
a "two-bit dictator."
-
- These comments aren't surprising from a man who headed
the hard right International Republican Institute (IRI). Along with the
National Endowment for Democracy (NED) and USAID, these organizations front
for imperialism, support rightest dictators, and plot the overthrow of
independent democrats like Chavez who dare confront America.
-
- Think hard about this man from what his fellow Republicans
say about him. Some call him psychologically unhinged and unqualified to
be president. Mississippi Senator Thad Cochran said: "The thought
of (McCain) being president sends a cold chill down my spine." Others
from the far right, like Alabama's Dick Shelby, former Pennsylvania Senator
Rick Santorum, and Oklahoma's Jim Inhofe, mention times McCain screamed
four-letter obscenities at them in the Senate cloak room. Another senator
said: "He is frighteningly unfit to be Commander-in-Chief."
-
-
-
- Along with these unsettling comments, there are disturbing
allegations about McCain's POW years and reported special treatment he
got after his father, Admiral JS McCain, became CINCPAC Commander-in-Chief,
Pacific Command over all Vietnam theater forces. An organization called
"Vietnam Veterans Against John McCain" is actively addressing
his record on things people have a right to know about public officials,
if they're true, and McCain has an obligation to explain them.
-
- Democrats aren't much better, and consider their views
about Chavez. They're hardly friendly with Hillary Clinton saying "we
have witnessed the rollback of democratic development and economic openness
in parts of Latin America" with no confusion about who she means.
Barack Obama is also suspect despite saying if elected he'll meet with
Iranian, Cuban, Syrian and Venezuelan leaders. It sounds good until he
qualifies it and spoils everything. He labels these countries "rogue
states," reveals his real feelings, and signals his hostility and
unwillingness to establish good relations with them.
-
-
-
- Chavez Says Venezuela May Create Windfall
Oil Profits Tax
- By Brian Ellsworth
-
- CARACAS (Reuters) - Venezuela may create a windfall tax
on oil profits generated by rising oil prices, President Hugo Chavez said
on Sunday, extending the OPEC nation's efforts to increase revenue from
the oil industry.
-
- The leftist leader said Venezuela could sue Exxon Mobil
(XOM.N) for unpaid oil taxes, just days after revelations that Exxon won
court orders freezing up to $12 billion in Venezuelan assets to ensure
compensation for a nationalized oil project.
-
- Chavez also repeated threats to cut oil sales to the
United States if Washington attacks the South American nation.
-
- The windfall tax would represent the fourth increase
in oil taxes in as many years as part of Chavez's drive to increase revenue
from the oil industry and increase state control over oil fields, a crusade
that sparked the current legal tussle with Exxon.
-
- "If the price of oil continues to strengthen between
$80 and $100 per barrel, I think it is necessary to apply this tax,"
Chavez said during his weekly broadcast held at the Cerro Negro oil project
once run by Exxon.
-
- "Soon I want to be presented with a recommendation
for what we could call the tax on sudden earnings."
-
- Chavez in 2004 raised royalties on four heavy oil projects,
and in 2006 created an "extraction" tax and boosted income tax
on the same projects.
-
- He did not offer details on the tax, but said it would
require increased payments at times of higher prices. Venezuela ally Ecuador
in 2007 created a similar tax giving the state 99 percent of revenue above
a set benchmark price.
-
- Venezuela's tax could be a sign that state oil company
PDVSA, the principal financier of Chavez's social programs, is facing growing
cash-flow problems despite record-high oil prices that last month broke
$100 per barrel.
-
- The company's debt quadrupled last year to reach $16
billion as it took on new social responsibilities including importing food,
while international energy agencies showing its oil output slumping.
-
- EXXON BATTLE
-
- Adding to tensions with Exxon Mobil, Chavez said Venezuela
could sue the company for unpaid taxes on oil produced at Cerro Negro,
which Venezuela took over last May.
-
- "They took 500,000 barrels of crude from here without
registering it," Chavez said during his weekly broadcast. "This
is ... another reason to sue Exxon Mobil and (make them) pay us for what
they stole."
-
- PDVSA later said the figure was 400,000 barrels.
-
- Exxon originally sought $5 billion in compensation for
its stake in the Cerro Negro project, PDVSA's lawyers have said. PDVSA
says the value of the assets is close to $750 million.
-
- Chavez on Sunday repeated threats to cut oil sales to
the United States if Washington moves against him, warnings that last week
helped lift oil prices that have recently backed away from their triple-digit
records.
-
- "If the United States ... attacks Venezuela and
tries to harm us, we will have to make the decision not to send a single
drop of our oil to the United States," Chavez said.
-
- (Additional reporting by Fabian Andres Cambero, Editing
by Maureen Bavdek)
-
- http://www.kren.com/Global/story.asp?S=7885430
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