Exxon Mobil cut off from Venezuela's Oil

Mallory Overstreet/2-17-08/Oil and Energy/8:13pm/Blog 6


Currently, Exxon Mobil is not welcome to do business with the United States' fourth largest oil resourse. Venezuela's President, Hugo Chavez, has threatened to cut off oil to the United States in reaction to Exxon Mobil's attempt to sieze billions of dollars worth of Venezuelan assets. Venezuela accused Exxon Mobil of "judicial economic harrassment", and stated that the United States transactions have been "unnecessary and hostile". President Chavez seems very angry over the issue, and surprisingly, spokespeople for exxon mobil and the White House seem calm and almost uninterested. This is surprising because on average, the United States buys one and a half million barrels of crude oil per day from Venezuela, so this is not a small issue. If the conflict worsens, gas prices will probably get even higher, due to the fact that the United States would have to rely on other sources for oil. Although the United States is the number one buyer of Venezuelan oil, Chavez is persistent with his reaction until the conflict is settled. This is also surprising since money from the United States buying oil has boosted his popularity and Venezuela's economy. He has also gone so far as to air anti Exxon mobil slogans on television.
This is a serious issue, and if the conflict is not resolved soon, the public will soon realize that things like this, even if they are half way across the world, effect us more than we may realize.