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But Venezuela has already seized and nationalized foreign-owned assets. Surely that burnt plenty of bridges? I'm more likely to believe that influential Venezu

But Venezuela has already seized and nationalized foreign-owned assets. Surely that burnt plenty of bridges? I'm more likely to believe that influential Venezuelans are exposed to the current bond market and are seeking to delay the reckoning.

Alupis 10y ago
> But Venezuela has already seized and nationalized foreign-owned assets. Surely that burnt plenty of bridges? They seized/nationalized Exxon's assets, which certainly burnt that bridge (Exxon promptly filed for arbitration). But Exxon is only one foreign company. Perhaps Venezuela sees a future of no foreign petroleum companies, but rather use foreign investments/loans to build their own internal petroleum operations. This seems likely after nationalizing the existing plants.
- saryant 10y ago
  After nationalization Venezuela told all PDVSA workers that they either had to be loyal to Chavez or quit. Many of the best left, knowing they could take positions with the supermajors or service contractors in other countries. PDVSA was left with a hodgepodge of lackeys and hacks who don't know what they're doing. That problem is compounded by the fact that Venezuelan crude is a pain in the ass to deal with. Some of the nastiest on earth. Extremely heavy and sour (which is also why Venezuelan crude trades at a discount to the benchmarks).
  - Alupis 10y ago
    I believe you are making my point. Venezuela's future will depend on and require foreign investments and expertise. Burning that bridge (or not burning it) is a calculated risk.
    - woodandsteel 10y ago
      >Venezuela's future will depend on and require foreign investments and expertise. Well yes, but you seem to be assuming Maduro is rational on economic matters. But if that was so, the Venezuelan economy would not be in such a terrible mess.
    - ptaipale 10y ago
      Alas, it looks like the Chavez and Maduro governments are not really capable of calculating risks, or even understanding rational processes. They are completely ideological short-term opportunists.
- hiou 10y ago
  Exactly. And this is why defaulting is so dangerous. To lose access to that foreign investment in the future would be disastrous for that plan.
- abpavel 10y ago
  > Exxon is only one foreign company It's starting to sound like you're one of the bond holders or securities tied to the bonds. Exxon is consistently in the top 10 on F500, and was an absolutely critical part of bloodline. Nationalization of Exxon was the an act of desperation, the last gasp, not "just one company". Having visited Venezuela, it is obvious there are huge problems with the state of affairs that no foreign investments are going to solve. (Edit:identation)
- woodandsteel 10y ago
  From what I understand, Chavez was a marxist-socialist-nationalist who wanted to keep foreign investment out, and instituted policies that did this quite effectively, and Maduro has the same intentions.
knowaveragejoe 10y ago
Do you have any more information on this? I'm pretty out of the loop on the Venezuela situation and would like to know more, but don't even know where to begin.
- g_delgado14 10y ago
  Within the article theres a QuickTake explainer [0] on Vzlas economy [0] - http://www.bloomberg.com/quicktake/venezuela-price-revolution http://www.bloomberg.com/quicktake/venezuela-price-revolutio...
- rmsaksida 10y ago
  This article is very informative: https://www.washingtonpost.com/opinions/global-opinions/hugo-chavezs-long-con/2016/07/01/26e8b690-3f8c-11e6-80bc-d06711fd2125_story.html https://www.washingtonpost.com/opinions/global-opinions/hugo...

Alupis 10y ago

> But Venezuela has already seized and nationalized foreign-owned assets. Surely that burnt plenty of bridges? They seized/nationalized Exxon's assets, which certainly burnt that bridge (Exxon promptly filed for arbitration). But Exxon is only one foreign company. Perhaps Venezuela sees a future of no foreign petroleum companies, but rather use foreign investments/loans to build their own internal petroleum operations. This seems likely after nationalizing the existing plants.

saryant 10y ago
After nationalization Venezuela told all PDVSA workers that they either had to be loyal to Chavez or quit. Many of the best left, knowing they could take positions with the supermajors or service contractors in other countries. PDVSA was left with a hodgepodge of lackeys and hacks who don't know what they're doing. That problem is compounded by the fact that Venezuelan crude is a pain in the ass to deal with. Some of the nastiest on earth. Extremely heavy and sour (which is also why Venezuelan crude trades at a discount to the benchmarks).
- Alupis 10y ago
  I believe you are making my point. Venezuela's future will depend on and require foreign investments and expertise. Burning that bridge (or not burning it) is a calculated risk.
  - woodandsteel 10y ago
    >Venezuela's future will depend on and require foreign investments and expertise. Well yes, but you seem to be assuming Maduro is rational on economic matters. But if that was so, the Venezuelan economy would not be in such a terrible mess.
  - ptaipale 10y ago
    Alas, it looks like the Chavez and Maduro governments are not really capable of calculating risks, or even understanding rational processes. They are completely ideological short-term opportunists.
hiou 10y ago
Exactly. And this is why defaulting is so dangerous. To lose access to that foreign investment in the future would be disastrous for that plan.
abpavel 10y ago
> Exxon is only one foreign company It's starting to sound like you're one of the bond holders or securities tied to the bonds. Exxon is consistently in the top 10 on F500, and was an absolutely critical part of bloodline. Nationalization of Exxon was the an act of desperation, the last gasp, not "just one company". Having visited Venezuela, it is obvious there are huge problems with the state of affairs that no foreign investments are going to solve. (Edit:identation)
woodandsteel 10y ago
From what I understand, Chavez was a marxist-socialist-nationalist who wanted to keep foreign investment out, and instituted policies that did this quite effectively, and Maduro has the same intentions.

knowaveragejoe 10y ago

Do you have any more information on this? I'm pretty out of the loop on the Venezuela situation and would like to know more, but don't even know where to begin.

g_delgado14 10y ago
Within the article theres a QuickTake explainer [0] on Vzlas economy [0] - http://www.bloomberg.com/quicktake/venezuela-price-revolution http://www.bloomberg.com/quicktake/venezuela-price-revolutio...
rmsaksida 10y ago
This article is very informative: https://www.washingtonpost.com/opinions/global-opinions/hugo-chavezs-long-con/2016/07/01/26e8b690-3f8c-11e6-80bc-d06711fd2125_story.html https://www.washingtonpost.com/opinions/global-opinions/hugo...