Value for Money

The oil companies of the US and other developed countries are money-making enterprises that have to be profitable to their shareholders. However, in the developing world, plenty of state oil companies are heavily subsidized by the government for the very valid reason that the most important factor is guaranteeing a reliable stream of import oil.

Which brings me to the current situation in Venezuela. President Chavez has raised taxes and operating restrictions for companies hoping to gain access to the country’s huge reserves, and that, combined with his outspoken anti-Americanism, has lead to many new faces in Venezuela’s oil scene. No western companies can tolerate Chavez’s new laws and regulations, but companies not worried about pulling a profit have jumped on board.

Foreign oil companies with contracts in Venezuela before Chávez took power:
Royal Dutch Shell Plc. (U.K.-Holland)
Exxon Mobil Corp. (U.S.)
Total SA (France)
ConocoPhillips (U.S.)
Chevron Corp. (U.S.)
BP Plc. (U.K.)

Foreign oil companies that have won deals since he took office:
China National Petroleum Corp. (China)
Oil and Natural Gas Corp. (India)
Petrobras SA (Brazil)
Repsol SA (Spain)
Lukoil (Russia)