Lawmakers loyal to President Hugo Chavez gave final approval on Thursday to a bill allowing the Venezuelan government to seize total control of the nation's fuel distribution. Under the law, distributors including subsidiaries of British Petroleum, Exxon Mobil Corp. and Chevron Corp., will have 60 days to negotiate the sale of their businesses to the government or face expropriation. By controlling the fuel distributions in Venezuela how will this effect the economy?
Venezuela is a big oil exporter to the U.S. and the Chavez led government is decidedly anti-bush, if not anti-american. With this new power granted to the venezuelan government I think it may worry the stock market and cause oil prices to rise some initially, but I personally believe chavez needs our money too much and isn't brazen enough to change the current trade conditions too drastically if at all. If thats the case then I think once stock holders see that, the price fall down maybe not to where they were before, but near there.
i think alot of the oil companies will put up a fight. i don't know too much on this subject so honestly, i can't come up with an amazing answer/start a discussion. however, i don't think they should seize the companies oild and distribute it, or whatever they plan on doing. i think they should create specific guidlines as to how much they can produce.
I think this will cause oil prices to drastically increase and this will make our economy worse then it currently is. I think there will definitely be a fight about this, but i think that this will definitely increase the prices. hopefuly this doesnt happen!!!
this will completley change their economy, they will change from a market economy to a command economy, which will seem goodin short term, but as it has been so many times before, the communist economy will fail, and the country will spiral into bankruptcy
this isn't going to help us at all. Chavez will probably force us to pay higher prices than others just because of his distaste for the US. And since we are so dependent on foreign oil, the oil companies will pay, then charge us 500% because they know we will pay. So I'm going to walk over the Chick's and buy a bike right now.
