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Sunday, April 22, 2012

Argentina's Oil Grab is Timely Retort to Rampaging Capitalism

Cristina Fernández's actions, however clumsy, are part of a worldwide reaction to exploitation by business and the rich.
April 22, 2012

Suppose the British government knew that a key shareholder in Centrica, our last great British energy company and owner of British Gas, was to sell its stake to Gazprom, so making Russian state ownership inevitable. I hope that, in this scenario, the government would expand the provision of the Enterprise Act that allows Britain to block takeovers that are against the national interest to include gas and nuclear power. (The act is currently confined to defence, financial services and the media.) I'm pretty certain that Centrica chairman Sir Roger Carr, also president of the CBI, shares the same view. No country can be indifferent to the ownership of strategic assets and thus the use to which they might be put. Its first obligation is to the well-being of its citizens.

The Argentinian government was faced with just this dilemma last week. YPF is its national oil and gas company, which it sold to the Spanish oil company Repsol for $15bn in 1999 as part of its privatisation drive. It has not been a great deal for either party. Argentinian oil and gas production has slumped, exploration for new reserves has been run down and this oil-rich country is now an oil importer, with Repsol accused of looting the company and betraying its obligations.   READ MORE

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