May 2, 2007
The latest Chavez oil grab--- and calls to boycott Citgo
Hugo Chavez is breaking more agreements in his drive to nationalize whatever he can in Venezuela. Latin America’s colorful leftist dictator has just announced plans to seize oil fields that a group of foreign oil companies had previously invested in.
In true Che Guevara style, Chavez is determined to rule by proclamation rather than law and due process. A few weeks ago he was sticking it to Venezuelan opposition television and radio channels. Now he is sticking it to the transnational oil companies. Down with the foreign capitalistas! Up with the patria!
There are however, signs that Chavez may be veering into overreach. Given the money and principles at stake, the oil companies are apparently taking a hard line with the Venezuelan government:
“Despite the fanfare, these companies remain locked in a behind-the-scenes struggle with the Chavez government, and appear to be taking a decisive stand, demanding conditions - and presumably compensation - to convince them that Venezuela will continue to be good business.” –CNN.com
Meanwhile, Allen Wastler and Bill Tucker are calling for a Citgo boycott. (Citgo is the gasoline distributor that is owned by Venezuela’s state-run oil company.) This is probably the first step that Americans can take to send a message to Chavez. I don’t happen to live near any Citgo stations. But if I did, I certainly wouldn’t buy my gasoline from them.
Wastler and Tucker’s piece is worth reading in its entirety; but I would like to draw attention to one important point they make: Most of us are unhappy with the current price of gasoline. When oil companies are making record profits while working Americans struggle to buy this basic necessity, we know that something isn’t quite right.
Nevertheless, Chavez will only make things worse. Chavez has a rabidly anti-American agenda, and he would love to see American consumers suffer even more. Whatever you think of Big Oil, Hugo Chavez is most certainly not on your side.
In addition, Chavez’s actions set a bad precedent in an age when our economy is increasingly reliant on foreign countries. As Wastler and Tucker point out:
“One, he [Chavez] is not honoring commitments. Anyone who appreciates a society based on laws, not political whims, should be scared of that. Oil interests invested in Venezuela on the basis of getting future returns. A lot of that oil could very well still be in the ground if it weren’t for their work. Now they are being relegated to minority status by fiat. That’s unfair. And burning partners doesn’t bode well for getting future help, which Venezuela will probably need sooner or later.” --- Allen Wastler and Bill Tucker