"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Tuesday, April 17, 2012

SHOCK: Argentina to nationalize oil

Naked Socialism
Argentinian President Cristina Kirchner announced the nationalization of oil fields. 

Private Property Attacked   -   Authoritarian Argentina is taking over privately owned oil fields

  • What business will now invest in Argentina when the government can steal your property?

Argentina sent shock waves through the oil industry by announcing plans to nationalize local oil assets controlled by a Spanish company, in a controversial move that threatens to sour the already troubled relationship between the two countries.

The move to seize 51% of Repsol's YPF business in Argentina sent the company's shares spinning down 18% on Wall Street and will worry other big foreign investors such as BP reports the UK Guardian.

Cristina Fernández de Kirchner, Argentina's president, introduced the new measure to Congress in a bid to recover sovereignty over its national hydrocarbon resources.

Kirchner accused Repsol of failing to produce enough oil through YPF to meet Argentina's energy requirements.

The nationalization comes amid escalating threats against operators drilling for oil off the disputed Falkland Islands.

Argentina is expected to expropriate about 24% of YPF from Repsol and another 26% from Argentina's Peterson Group.

Kirchner said the price would be set by the national appraisal tribunal and insisted the business could continue to be managed "professionally". She said Argentina was one of the few countries that did not control its own oil.

(UK Guardian)

Argentina has been making threats against the United Kingdom about the Falkland Islands now that there oil has been discovered.

The Great Energy Gold Rush.
Oil and gas fields all over South America are drawing attention from Europe, China and the United States.

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