Venezuela Claims A Win Over Exxon In Oil Dispute

Back in 2007, Venezuelan President Hugo Chavez came to the realization that American oil companies were virtually stealing Venezuela's vast oil reserves. The American corporations were making billions and only paying a tiny portion of that to Venezuela. Chavez decided that enough was enough, and he nationalized the oil industry in Venezuela -- a move that makes imminent sense considering the large number of poor people that country had. Since the nationalization, much more money has flowed into Venezuela's government coffers, and Chavez has used much of that money on programs to raise the standard of living for millions of the country's citizens.

Although President Chavez paid a nominal sum to the oil companies when the nation's oil was nationalized, it was not nearly enough for the American oil magnates. They saw the goose that laid the golden eggs was taken from them, and they would no longer be able to steal the valuable resources that should have been the property of the people of Venezuela in the first place. One of these companies, Exxon Mobil, took their case to the International Chamber of Commerce. They demanded $12 billion in compensation (for losing the right to steal Venezuelan oil).

That international tribunal has now made a decision in the case. They ruled that Venezuela owes Exxon Mobil about $907 million -- a far cry from the $12 billion Exxon Mobil was wanting. But Venezuela won't have to come up with the full $907 million, because the arbitration tribunal also ruled that the American corporation owed the Venezuelan oil industry an additional $160 million. When that is added to the $191 million they already owed and the $300 million the company seized in American banks, Venezuela will only have to pay about $255 million.

This does not end all cases against Venezuela. Exxon Mobil has another case, and other oil companies have also filed claims. But it does indicate that similar (or even smaller) decisions will probably be made in the remaining cases. The tribunal is basically ruling that the oil does belong to the people of Venezuela, and not to the oil companies trying to claim it as their own. They are due a fair compensation, but that does not mean they are owed future profits which they will now not be getting.

I congratulate the nation of Venezuela for reclaiming their own resources and standing up for their rights. It's not often that anyone wins when they try to stand up to Big Oil.