Tuesday, February 13, 2007

Chavez Moves Toward Socialist State

Why Canadian Oil is hassle free.

".....The iconoclast Chavez is in the vanguard of Latin America's resurgent left, which that has also swept Bolivia and Ecuador with promises to roll back 1990s' free-market reforms that first brought companies like AES and Verizon to Venezuela.

The effort follows Venezuela's campaign over the previous two years to wrest control of its fields from oil giants like Chevron and boost taxes on their operations.

But Chavez may face a tougher fight to take control by May 1 of four heavy crude oil upgrading projects that turn tar-like crude into light oil operating in the Orinoco basin worth $30 billion that include investment from some of the world's largest oil companies.

Rex Tillerson, chief of Texas-based energy behemoth Exxon Mobil, on Tuesday expressed doubt the Orinoco projects could meet Chavez' ambitious deadline, especially since the government has not provided details on the planned takeovers.

"We are waiting on the government representatives to sit down with us and give us some of the details of what exactly is it their objectives are, how you migrate and offer compensation........"

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