Venezuela Threatens to Cut US Oil
Venezuelan President Hugo Chavez has threatened to cut off oil supplies to
the US unless it halts what he calls its "economic war" against his
country.
His warning came days after US oil giant Exxon Mobil won orders in US, UK
and Dutch courts to freeze billions of dollars of Venezuelan oil assets.
Exxon wants more compensation from the Chavez government after it took
control of Exxon oil projects last year.
The US is the biggest market for Venezuela's heavy crude oil ex****ts.
President Chavez has threatened several times before to stop sending
Venezuelan oil to the US but so far not done so.
Nevertheless, his comments during his weekly televised address, took sharp
aim at Exxon Mobil and, by extension, the Bush administration.
He described Exxon's management as imperialist bandits who form part of a
US
government-backed campaign to destabilise Venezuela.
"If you end up freezing [Venezuelan] assets and it harms us, we're going
to
harm you," Mr Chavez said.
"Do you know how? We aren't going to send oil to the US. Take note, Mr
Bush,
Mr Danger."
Long dispute
At the heart of the dispute is last year's decision to take over oil
projects in the Orinoco Belt, a move Mr Chavez has argued will bring
billions of dollars back to the Venezuelan people.
Exxon Mobil refused to sell a majority stake to the Venezuelan government.
It has taken its case for compensation to the International Centre for
Settlement of Investment Disputes, a process that could take years.
It has not indicated how much compensation it wants for the 41.7% stake in
the Orinoco Belt oil field - worth an estimated $750m (£370m).
Last week, the company won tem****ary court orders in the UK, the
Netherlands
and the Caribbean freezing Venezuelan assets worth up to $12bn (£6bn).
Another order in a New York court froze up to $315m of funds of the
state-run Venezuelan oil company, PDVSA.
Further hearings are scheduled later this month in New York and London.
It will be a tough fight, says the BBC's James Ingham in Caracas.
Mr Chavez is a strong leader who rails against what he calls the evils of
capitalism while Exxon is renowned as a tough cor****ate player.
Cutting off oil deliveries to the US would be damaging to Caracas as well
as
Wa****ngton.
The US is not only Venezuela's biggest market but is also home to
refineries
that specialise in the heavy sour crude oil Venezuela ex****ts.
The threat, then, may be too risky for Mr Chavez to carry out, our
correspondent says.
© 2008 BBC News
http://news.bbc.co.uk/2/hi/americas/7238214.stm
Chavez, compared to Exxon oil is a choir boy.
I think he has done remarkable work for the majority of Venezuelans and
put
in place programs that can only benefit the poor and working class while
allowing the rich oil cartels to co-exist profitably.
He has the balls to stand up to BUSH'S bullying more than any other World
Leader.
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