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jugoso

Argentina president proposes oil nationaliza

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Posted (edited)

If approved, the government would acquire a 50.1% interest in the company, whose majority owner is Spain-based Repsol. News of the proposal sent YPF share prices soaring 8.6% in New York Stock Exchange trading, as investors positioned themselves for the government’s possible purchase of shares.

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good for them!!

Edited by jugoso

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good for them!!

If government control has led to higher prices, why is that good? I agree that having a market control energy is wrong without some regulations but I can also see a private company not wanting to invest in something that is not yielding the best return it's capable of....

It will be interesting to see what compromise can be made.

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Why would it raise the price of oil?

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If government control has led to higher prices, why is that good? I agree that having a market control energy is wrong without some regulations but I can also see a private company not wanting to invest in something that is not yielding the best return it's capable of....

It will be interesting to see what compromise can be made.

It can turn out to be more beneficial and profitable to the producing nation.

"the purpose of obtaining more revenue from oil for oil producing countries. Nationalization eliminates the concession system—in which private international companies control oil resources within oil-producing countries—and allows oil-producing countries to regain control."

http://en.wikipedia.org/wiki/Nationalization_of_oil_supplies

If it does happen, it ain´t gonna go down easy:

Spain's secretary of state for EU affairs Inigo Mendez de Vigo warned that Argentina would become "an international pariah" if it were to go through with such plans.

"I think that if it happens, it would be very bad news for everybody, but also for Argentina because in the international community we live in, breaking the rules bears a cost," he said.

http://news.sympatico.ca/world/spain_warns_argentina_over_seizure_of_repsol_unit/9b025b17

EC response:

“We take the side of Spain in this situation,” said EU spokesman flatly Olivier Bailly during a press conference in Brussels."

The European Commission hopes that the Argentine authorities “ensure respect for international commitments on the protection of foreign investments in its territory,” he said, and said the EU executive remains in contact with the Spanish government and the situation is “very attention.

http://growthstockbroker.com/2012/04/13/the-ec-supports-to-spain-and-require-to-argentina-to-respect-its-commitments-with-ypf/

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