H14997
Headlines : GovernmentVenezuela 'Oil Socialism' Boosts Income $5.8 Billion
Once upon a time, Venezuela received 1% royalties from oil companies. Now Venezuela receives 33%. Taxation has also increased by 16%, giving Hugo Chavez an additional $5.8 billion to fund state health, education, community programs, infrastructure, other industry development and defense.
This additional revenue adds an extra 11% to the country’s official 2007 budget.
It is incredible that international oil companies can afford to share this much more money and still see Venezuela as a viable, profitable place to do business.
[Posted By antiguanoctane]Republished from Bloomberg
Venezuela’s bid to nationalize its energy industry has boosted government income by $5.8 billion a year, fueling a new form of ``oil socialism,’‘ President Hugo Chavez said.
The extra $5.8 billion, equal to 11 percent of Venezuela’s official 2007 budget, came through tax and royalty increases phased in since 2004, and the May seizure of four foreign oil joint ventures in the country’s eastern Orinoco Belt, he said.
``You can’t have the socialist economic model that we want in Venezuela without including oil,’‘ Chavez said during a six- hour broadcast of his weekly talk show, ``Alo Presidente.’‘
Chavez, seeking to cut private, foreign energy companies’ roles in Venezuela and to boost ``oil sovereignty,’‘ said the government’s average share in the Orinoco ventures had nearly doubled to 78 percent from 40 percent in February.
Posted by antiguanoctane
hunter & gatherer of real news from real sources.
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VIVA SIMON BOLIVAR !
VIVA LA REVOLUCION !
Got in himmel Hugo! I hope you’re not using the word “seizure”. I believe the correct term is “repatriation”.
Jose Anzoategui, after whom is named one of the four Orinoco projects, was a Brigadier General in the Battle of Boyacá. Das Battle of Boyacá was the decisive battle that wrested New Granada from the Spanish throne. aka Colombia.
Perhaps soon we will hear of the Jose Anzoategui Prize for Physics and or the Jose Anzoategui Chair in Chemical Engineering.
The G also soon should post a little overview of how the Red Shirts came to Latin America.
Chavez has done what Canada needs to do – stop giving the oil away to corporate entities to create millionaires, instead of helping out each and every citizen of the nation where the oil comes from.
Chavez has reduced poverty and eliminated homelessness, and drug abuse has dropped because of those advances. Those are some of the problems in Canada, and yes they are the result of “concentrating wealth into so few hands”.It is a myth that there is no downside to wealth – it creates poverty. There is a finite amount of wealth at any given time, and when 90% of it is in 5% of peoples hands, there WILL be poverty. It is inhumane. This is corporatism.the government’s average share in the Orinoco ventures had nearly doubled to 78 percent from 40 percent in February. That, plus the increased oil company royalties, once as low as 1 percent, now 33 percent, resulting in an extra $5.8 billion, equal to 11 percent of Venezuela’s official 2007 budget
“This is what you call freedom: Past governments couldn’t have done this because they were ‘strapped to the U.S. empire’ and the interests of its private oil companies”, said Chavez