Subscribe to our free daily newsletters
  Energy News  




Subscribe to our free daily newsletters



ENERGY TECH
Venezuela growth hit by state seizures

disclaimer: image is for illustration purposes only
by Staff Writers
Caracas, Venezuela (UPI) Nov 8, 2010
Venezuela, the only Latin American nation still in recession in the last quarter of 2010, risks fresh blows to its growth prospects in 2011 after a spate of new nationalizations hitting key resource industries.

Privately run steel manufacturing plant Sidetur was taken under state control after officials accused its operators of keeping productivity low and not doing enough to meet domestic demand.

Earlier in October two glass factories went under state ownership in a measure seen largely as the result of President Hugo Chavez objecting to the companies' U.S. ownership.

Last year Chavez nationalized a Venezuelan unit of U.S. food giant Cargill. The takeovers followed decreed nationalizations of privately owned oil, telecommunications, power and cement companies.

Opposition critics and financial analysts said in published comments that the nationalization could exacerbate low productivity that resulted partly from government intimidation of the labor force and managerial communities.

The ratings agencies have already downgraded Venezuela, stating poor economic performance as the key reason for the negative revisions.

Chavez said the government will take over the Sidetur steel manufacturing plant and two U.S.-owned Owens-Illinois glass-manufacturing units.

Jose Paredes, the vice minister for basic industries and mining, said the government nationalized the Sidetur plant because it wasn't providing enough steel to meet Venezuela's growing needs. In 2008, Chavez nationalized Venezuela's largest steel plant, Sidor, and several other industries. In each case the government cited low productivity as the reason behind the state takeovers.

Vivencia, which owns Sidetur, lost two mineral plants to government takeover in 2008.

Opposition critics want Chavez to halt nationalizations as they argue the state takeovers aren't helping economic recovery or growth.

In June U.S. oil rigs operator Helmerich and Payne was among several companies targeted for nationalization in the government's enthusiastic push for a socialist economy.

Oil Minister Rafael Ramirez said a fleet of oil rigs belonging to the Oklahoma company would be seized by the state and hinted that other companies seen not to be operating at full capacity could be targeted for nationalization.

A state takeover of the Helmerich and Payne was anticipated amid an ongoing dispute over payments between the company and the state-run Petroleos de Venezuela, S.A. Helmerich and Payne said it was owed money by PDVSA and would only resume operations after its account had been settled.

Export Development Canada, which provides trade finance and risk management services for exporters and investors, said, "The business climate is turbulent and the Chavez administration has been openly hostile toward private capital and foreign direct investment."

EDC said the Venezuelan's leader's "willingness to expropriate businesses and breach contracts is a significant worry for both domestic and foreign-owned businesses." It said, "Private business is under constant threat, and other sectors impacted by expropriation are petrochemicals, oil services, cement, telecommunications, steel, media and food," EDC added.

Moody's ratings agency said, "Venezuela is a wealthy country compared to its peers. But despite this comparative advantage Venezuela remains the only major Latin American country still in recession in 2010, a reflection of haphazard policymaking that has depressed investment and growth."



Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
Powering The World in the 21st Century at Energy-Daily.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


ENERGY TECH
Blackouts trigger diesel shortage in China: state media
Beijing (AFP) Nov 8, 2010
Power outages imposed on factories to help China meet its energy efficiency targets have led to diesel shortages in several cities as plants are forced to use generators, state media said Monday. More than 2,000 privately owned petrol stations in southern China have shut down due to a lack of diesel, the China Daily reported, citing a petroleum industry body. Long lines of cars and "sold ... read more







ENERGY TECH
EU wants $1.4 trillion for energy overhaul

Obama inks energy agreements in India

EU unveils trillion-euro single energy market

Californians reject proposal to repeal greenhouse gas law

ENERGY TECH
Nigeria kidnaps sharpen fears of oil war

Nabucco supply deals imminent, RWE says

Gulf oil firms could have prevented rig accident: US expert

Study: Energy alternatives won't be ready

ENERGY TECH
South Korea plans offshore wind project

Buoyant Times Ahead For Offshore Resource Assessments

Suzlon eyes China's wind power market

Offshore Wind A Mixed Bag

ENERGY TECH
DESERTEC Project Making Progess In African Desert

LADWP Moves Forward With Large Solar Array

Solar Energy System At Caltech Activated

Australia and U.S. partner on solar energy

ENERGY TECH
German nuclear waste arrives after mass protests

'We're staying here': nuclear activists defiant to the end

Nuclear waste battle shows German feelings run deep

German police, activists gear up for nuclear showdown

ENERGY TECH
Grasses Have Potential As Alternate Ethanol Crop

Pennycress Could Go From Nuisance Weed To New Source Of Biofuel

Leading Advanced Biofuel Groups Meet At White House

ADM To Construct Biodiesel Facility In Brazil

ENERGY TECH
China launching spacecraft at record rate

China Goes To Mars

China says manned space station possible around 2020

China Kicks Off Manned Space Station Program

ENERGY TECH
Should Our Biggest Climate Change Fear Be Fear Itself

UN climate panel calls for carbon and transport taxes

Post-election and Obama's climate change

Warming Will Affect Storms Differently In Each Hemisphere


The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement