Likely a further sign of his government’s economic woes, President Hugo Chávez’s administration is offering oil contracts to foreign companies. The response to the bidding for concessions was not as strong as it has been in the past, as many companies have been burned by Chávez’s expropriation of assets. Still, Chevron and Repsol (of Spain) […]
The Venezuelan government finally blinked when it came to financial pressures by devaluing its currency on January 8th. The rate of the Bolivar Fuerte had been pegged at 2.15 to the dollar and is now 2.6 for essential supplies and 4.3 for luxury goods. Last week the value of the dollar on the parallel market […]
In February, President Hugo Chávez won a referendum allowing him (and any other public official) to be re-elected indefinitely. A total of 54% of the electorate supported this option, but did this represent a recent peak in the Venezuelan President’s popularity? Over recent months Chávez provoked a diplomatic row with Colombia and sent troops to […]
How is it that Venezuela, awash in energy resources, experiences blackouts? Although it is a global leader in oil production, most of the country’s power comes from hydroelectric dams, including one of the word’s largest, Guri. Unfortunately a combination of drought and failing infrastructure has severely reduced capacity for power-generation. A NYT article gives a […]
Although oil prices recently reached a 1-year high, the Venezuelan economy continues to struggle. Last week the government announced a series of steps intended to promote growth and raise employment, while reducing inflation. More information can be found here. In terms of specifics, the Venezuelan economy grew at 4.8% last year, but GDP declined by […]
On the first anniversary of the financial crash, I have been thinking of the role oil played. Most pundits cite re-setting mortgage rates as the precipitate cause, but I believe the sudden spike in energy prices earlier that summer — and the resulting inflation in food and other prices — acted as the tipping point […]
In the past couple of weeks, the International Crisis Group, which monitors and comments on conflict situations around the world, has been focusing on the African country of Chad. Chad is neighbor to Sudan and starting point of what had been one of the most anticipated oil pipelines in history. ICG’s recommendations ask Chad’s government […]
I know China’s economic philosophy is different than America’s but was it ever so glaring as a week ago, when it was reported that China “loaned” China National Petroleum Corp. $30 billion for yet more overseas projects? Can you imagine Uncle Sam doing this for Exxon? (Okay, maybe GM, but the terms were a lot […]
– Malaysia is often sited as an example for the wider Muslim world of how a moderate pluralistic democracy can be compatible with Islam. An article in Forbes explores how moderate Malaysia actually is. First, the article recants the common outsiders view of Malaysia: …the Southeast Asian nation boasted the world’s tallest building, the iconic […]
Oil giant Chevron says that it had obtained video recordings — and has posted them on its website — that appear to show an Ecuadorean political operative seeking $3 million in bribes, in connection with a $27 billion lawsuit the company. It is the latest wrinkle in the on-going class action lawsuit brought by dozens […]
Central Africa is not the first place energy people traditionally think of when it comes to oil. Now it appears Uganda may have up to 2 billion barrels of the stuff, according to their government. The question is what to do about it. Uganda would like to have a refinery, although some oil companies say this […]
A Gallup poll done two weeks ago reveals that of all industries, Americans rated the oil and gas worst, even worse than banking, GM and lawyers. There have been some annoyed, defensive responses from workers in the oil and gas field — understandable since most people in the industry are hard-working, honest and understandably offended at […]
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