Venezuela has moved to secure sovereign control over its massive petroleum resources by insisting on compliance with a law which requires foreign oil firms to pay a 16.6% royalty on their production instead of the previous 1% which President Hugo Chavez Frias describes as "negligible." The move comes after a 3-year 'grace period' for compliance.
The Venezuelan 'get tough' policy is dictated because, for decades, mainly US oil companies have exploited Venezuela's oil reserves in the Orinoco heavy crude belt without much oversight and an insignificant level of taxation which often ended up in the pockets of corrupt politicians.
...Chavez says he does not think current international oil prices above US$50 per barrel are excessively high. Although he has strongly supported efforts by the Organization of Petroleum Exporting Countries (OPEC) to coordinate oil output strategy he adds that "some say it's a very high price putting at risk the economic stability of the world .... that's a lie!"
...Speaking on his weekly radio/TV program 'Alo Presidente' from Puerto La Cruz today, President Chavez Frias said "I have decided to use my executive powers to increase the exploitation tax to 16.6% with immediate effect."
VHeadline articleThe Venezuelan 'get tough' policy is dictated because, for decades, mainly US oil companies have exploited Venezuela's oil reserves in the Orinoco heavy crude belt without much oversight and an insignificant level of taxation which often ended up in the pockets of corrupt politicians.
...Chavez says he does not think current international oil prices above US$50 per barrel are excessively high. Although he has strongly supported efforts by the Organization of Petroleum Exporting Countries (OPEC) to coordinate oil output strategy he adds that "some say it's a very high price putting at risk the economic stability of the world .... that's a lie!"
...Speaking on his weekly radio/TV program 'Alo Presidente' from Puerto La Cruz today, President Chavez Frias said "I have decided to use my executive powers to increase the exploitation tax to 16.6% with immediate effect."
...hey, do what you want...you will anyway.
One thing's for certain....the price of gas isn't going down.
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