In the wake of Chavez’ move to nationalize 60 oil service companies in Venezuala, I thought I would mention that the move is being reported very differently in China. In these reports, Chavez is greeted by Veneualan workers on the rigs waving flags and cheering, etc. They mention several things that seem to be left out of the American reporting:

the fact that a lot of the service companies have been shutting down their operations in Venezuala lately because the country owes them a lot of money (since the price of oil tanked and Venezuala gets 93% of its export revenue from oil production) so the move will probably get production running again (albeit on stolen – the Chinese call it expropriated – equipment). The move to take over these companies is right in line with his socialist agenda – that the profits from oil exploration and production in Venezualan waters should go mainly to the workers of Venezuala. “Chavez said that the measure represented a “socialist offensive” which would eliminate the monopoly of the contracting companies and guarantee the welfare of thousands of Venezuelan workers.” Does the US government bear any responsibility (constitutional or otherwise) to seek compensation for these losses on behalf of the companies? Should we be preparing to go to war with Venezuala?

Another source mentions that no other member of Opec allows foreign subsidiaries to participate in their nationalized oil industries, so this move by Chavez isn’t inconsistent with OPEC policy. This seems to not be totally correct if Iraq, a founding member of OPEC is using American companies to run oil services. Since the US currently occupies that nation, does it mean that the US is actually part of OPEC now?