February 12th, 2008
“Alternative energy” gets a boost from oil country
Venezuela seems determined to make America’s alternative energy companies into successful greentech ventures. Today the Venezuelan national oil company “stopped all sales” to Exxon. This is just the latest salvo in the Exxon v. Venezuela heavyweight match. It began when Venezuela’s government took control of all oil plants there. Then Exxon did not like the offered “payment” and sued Venezuela in U.S., Britain and Netherlands. Exxon won legal rulings in all three countries, freezing up to $36 billion worth of Venezuelan assets in those countries pending lawsuit settlement.
Note: two European-based oil companies have settled with Venezuela getting millions of dollars worth of crude oil for their nationalized assets in Venezuela.
Further note: this is huffing and puffing and bluffing on Venezuela’s part. “Stopping sales” does not mean Venezuela will stop supplying oil to a refinery it co-owns with Exxon in Louisiana. So many oil industry observers think this “move” may have little concrete, or petroleum, effect. But it does raise the anxiety level one more centimeter in the already jumpy energy sector, and makes dependable energy sources from coal to nuclear to green althernatives look a teensy bit better to investors.
Venezueal is the #4 source of imported oil for the U.S.
A newsman since 1969, Harry Fuller has worked for CBS, ABC, CNBC Europe, CNET and was founding news director at TechTV. See his full profile and disclosure of his industry affiliations.
