Tuesday, May 02, 2006

Truth follows fiction?

As a longtime fan of Ayn Rand's novel Atlas Shrugged, I've blogged before about how current events lately seem to be modeling themselves on the events in that book.

But a couple of paragraphs in today's Daily Resource (found weekdays on Kitco.com) by analyst Doug Hornig really gave me the willies:
Most of [Monday's oil] price climb is due to “Iran jitters with the U.S. still pushing toward U.N. sanctions,” said James Williams, an economist at WTRG Economics. “When you add that on top of the loss of a fifth of Nigerian production, Bolivia's move toward the Venezuelan model of total control over oil produced by foreign companies and the summer driving season staring us in the face, it is easier for prices to go up than down,” he said.

Williams referred to a story, reported by BBC News on Monday, that Bolivian President Evo Morales has ordered foreign energy firms to hand over all natural-gas and oil sales to a state-owned company. The companies have six months to renegotiate their contracts or leave the country, Morales said, according to the report.

Bolivia appears to be taking its cues from Venezuela. A recent report from the Wall Street Journal said Venezuelan President Hugo Chavez was planning more moves to curb the activities of foreign oil companies in his country.
Ah, those wise and benevolent People's States. They'd never nationalize foreign assets within their borders.

Link to full article in post title. And if you haven't read the book yet, do yourself a favor and check it out.

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