12 March 2012

BRASIL / ECUADOR / VENEZUELA / USA : Chevron's Bets On LatAm Oil May Come-Up Sour.


     Chevron's position in Latin America...may be tenuous.
     In Brasil...it faces fines of $121 million...and even a $11 billion lawsuit from a small oil spill in November off Rio...and then...there's a long outstanding $18 billion judgement in Ecuador over decades of pollution from a company it took-over in 2001...that costs $200 million yearly to defend.
     Plus..it has extensive positions in notoriously unstable Venezuela...still under control of a fickle Hugo Chavez.
     Why the risks when LatAm provides only a sliver (about 6%) of Chevron's supply of crude...and other Big Oil companies have pulled out?
     One word...potential!