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Venezuela's state oil company is behind on billions in payments to private oil contractors from Oklahoma toBelarus, some of which have now stopped work, even as President Hugo Chavez funnels more oil revenue to social programs.
Petroleos de Venezuela SA, or PDVSA, says unpaid invoices jumped 39 percent in the first nine months of last year — reaching $7.86 billion in September. And that was when world oil was selling for $100 a barrel.
With prices plummeting by more than half, PDVSA is trying to renegotiate some contracts. But analysts say hardball tactics to reduce charges from crucial service providers could backfire by lowering Venezuela's oil output. And foreign debt markets are reflecting jitters about Venezuela's finances.
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Anyone think the US could learn from this?
Can we stop nationalizing sh!t please?
Let private industry fail and let it be rebuilt. Bailing it out doesn't help.
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