Reply #24: Read between the lines

[Nederland]

It's not about whether or government is more or less efficient than private industry, it's about trust. The key for Chavez here is to not to total screw over the big multinational oil companies. I know that many people here would love to see those oil companies get screwed over, but even Chavez can't afford to do that. Like it or not, they are the ones that understand this business and you need their help if you want to make any money off your oil.

No, this is about trust. If Chavez totally screws over the company's that previously owned these assets, no other oil company will touch Venezula with a 10 foot poll. Chavez knows this, and that's why in reality this in nothing but a PR stunt. Just read this line from the article:

Chevron's future in Venezuela "will very much be dependent on how we're treated in the current negotiation," said David O'Reilly, chief executive of the San Ramon, Calif.-based company. "That process is going to have a direct impact on our appetite going forward."

Those are not the words of a person in a weak position. He knows he holds the cards here and is basically saying, "if you treat us like shit we are going to walk". If Chevron et al walk away, Chavez is screwed in the long run. Sure, he can keep the lights on for a few years, but eventually he is going to need help from the people that really know this business--and those people work for big oil, not Chavez.