Friday, January 19, 2007
Memo to ExxonMobil: Blow it up
In 1960, shortly after Fidel Castro assumed total power in Cuba, he nationalized the assets of the big oil companies, which consisted principally of refineries. Texaco wrote a letter to its shareholders asking that they write their Congressman to secure a remedy. My father was one of those shareholders, and he wrote back to Texaco's CEO with a different idea that was at once more satisfying, even if less than practical and entirely unsupportive of international socialism: blow it up. Don't let somebody nationalize your refinery. Just blow it up. Yes, you will never get your refinery back, but the next thug will think twice before he confiscates your asset. (Yes, I appreciate that there are innumerable risks associated with this strategy.)
Fast forward almost fifty years, and Castro's ideological heir and actual protege, Hugo Chavez of Venezuela, is arrogating to himself the power to issue laws by decree, and declaring that he, too, will nationalize big oil's assets. ExxonMobil has responded with a strongly worded statement about the "sanctity" of contracts.
"I don't want to get pejorative about it, but contract sanctity is very, very important to Exxon Mobil... We don't enter into our obligations lightly and we expect that others don't enter into their obligations lightly either," he said.
That's all well and good, but Chavez is a Commie. He doesn't do sanctity of contracts. He will decree that ExxonMobil's assets are now the property of the "people" of Venezuela, by which he means the people who will specifically support Hugo Chavez. The difference between Cuba of 1960 and Venezuela of 2007 is essential, though. Oil is the lifeblood of Chavez's post-Commie communism, and it keeps him in power. ExxonMobil really should blow it the frack up. It would be doing us all a favor.*
MORE (Sat. morning): There are a great many sneakier and undoubtedly more intelligent ideas in the comments. Keep 'em coming!
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* For all of you out there who believe that one should not advocate a policy that one is unwilling to pay for, note that I own enough ExxonMobil stock that a few points off its stock price would be enough to pay my mortgage for several months. For what that's worth. And, yes, I know that it would be virtually impossible to pull off without putting innocent people in jeopardy of life or limb, so I appreciate that ExxonMobil should not actually do this. But apart from those messy details, it would be the best result for everybody, including the people of Venezuela.
30 Comments:
By 
ben, at
Fri Jan 19, 10:29:00 AM:
If it's not practical for them to blow it all up, they could remove everything not bolted down.
And, I'm sure there are plenty of way to sabotage oil setups short of destroying them - and a broken oil pipeline means that the wreckage must be cleared before a new one can be built.
And, if they pull all the computers out of their offices, where will Chavez get new ones to replace them? What about the software that must control vital parts of the operations?
All those things can be sabotaged, and Chavez couldn't do a thing about it.
By 
, at
Fri Jan 19, 12:09:00 PM:
But apart from those messy details, it would be the best result for everybody, including the people of Venezuela.
It's amazing your depth of knowledge about what's good for Venezuela. How long did you live there?
By Georg Felis, at
Fri Jan 19, 12:28:00 PM:
Admittedly I have a certain appeal to the “Blow it up or sabotage it if nationalized” frame of mind, but when you go from abstract to concrete this becomes a lot less appealing. Remember the hostages that Iran took from EDS back in the Perot days, being held as extortion from the original EDS contract with the Shah to maintain a welfare check system? The country collapsed, EDS wanted to get its people out, and the nuts in the country held onto two EDS employees for a series of strange and bizarre demands ranging from cash payments to public humiliation until Ross sprung them. (Read “On Wings of Eagles”)
Can you really think that Chavez will restrain himself from grabbing or threatening a couple dozen people to keep a couple billion dollars worth of income? Much better to hit him in his fat wallet and ego.
By Andrewdb, at
Fri Jan 19, 12:37:00 PM:
Of course we paleo-conservatives think if tin pot Caribbean dictators act up one sends a couple of Cruisers from the Caribbean Squadron down to shell the country, and if that fails, lands the Marines - pity they are busy elsewhere these days.
By , at
Fri Jan 19, 01:27:00 PM:
Your dad must have been reading the comic strip "Annie" or whatever the correct name is. Daddy Warbucks blew up some industrial property rather than surrender it to some thieves, excuse me, gevernment.
By , at
Fri Jan 19, 02:38:00 PM:
yup. and start black box operations against 'entrepreneurs' in China where the entrepreneur is nothing more than a ideas and processes property thief. If you can't get a rule of law to work there's always the other approach. I don't know why our guys are taking this #$%@#!@ standing still.
By , at
Fri Jan 19, 02:45:00 PM:
If foreign countries are confiscating US assets, why not send some Marines in to stop them?
By TigerHawk, at
Fri Jan 19, 03:00:00 PM:
Anon 1:27 pm: I doubt he read "Annie." I'm guessing he got the idea from Atlas Shrugged.
By allen, at
Fri Jan 19, 03:30:00 PM:
Any potential damage done by ExxonMobil pales in comparison to the unimpeded damage that Mr. Chavez will do. That is the nature of war.
I have never lived in Venezuala. Come to think of it, I never lived in the CCCP; nevertheless, its demise was a universal good. Hmmm...If I have never been dropped feet-first into a woodchipper, am I competent to comment upon Saddam Hussein?
By allen, at
Fri Jan 19, 04:07:00 PM:
Sorry. "Venezuela". Proving, I know nothing.
By GreenmanTim, at
Fri Jan 19, 04:24:00 PM:
Isn't eminant domain the same thing, TH? If the government wants my land for a greater public purpose, it can condemn it (and we can argue about compensation, of course). In fact, if it wants my little house for private high end development, that's currently permissable, too. If the commies want to nationalize Exxon's refinery and pays compensation, how is that different?
Just twisting your tail a bit, Tiger. But curious none the less...
By Lanky_Bastard, at
Fri Jan 19, 04:33:00 PM:
Tiger, why do so many of your solutions involve blowing things up?
I think if you look at the Cuban economic model, you'll see ample deterrence already. Siezing assets is really bad for trade relations. Anyone willing to overlook that is probably on a personal power quest. Furthermore, such leaders will be lured, not deterred, by the threat of blowing up the plant. How hard would it be for a demagouge to gin up a little extra nationalism out of that?
Evil imperialist USA blows up oil wells and contminates Venezuelan air and water. That's how it would read in Venezuelan papers. To a lot of people it could even validate Chavez's decision, and it would make him that much stronger.
By Cardinalpark, at
Fri Jan 19, 05:56:00 PM:
they need not blow it up. they can make it inoperable.
By lugh lampfhota, at
Fri Jan 19, 07:17:00 PM:
Having worked in complex manufacturing operations for decades, I would suggest that ExMo order technicians to delete software applications and maintenance files. Purchasing could delete previous records of parts purchases and vendors. These acts would strangle operations ability to keep systems running and cause years of disruption as the new proprietors try to keep the system running. Hey Hugo, it's all your amigo.
By , at
Fri Jan 19, 09:24:00 PM:
There is no way Chavez is going to give them time to do any sabotage, and it is not in the nature of Exxon/Mobil to do that sort of thing anyway.
When the day comes, and come it will, Chavez will simply send troops to the facilities and seize control. Foreigners will be escorted off the property and deported.
There will be lots of noise and saber rattling, but the U.S. is mightily distracted, and there will be no reprisal.
Chavez will get away with it, and he will prosper, UNLESS someone in Venezuela is man enough to shoot him like the dog he is.
By , at
Fri Jan 19, 09:35:00 PM:
Will JIMMY CARTER and the liberal castro bootlickers be demanding reparations for cuba now?
By Purple Avenger, at
Fri Jan 19, 09:48:00 PM:
Isn't eminent domain the same thing, TH?
No. You (supposedly) get paid nominal market value with eminent domain.
By , at
Fri Jan 19, 10:28:00 PM:
Hmmm,
As tempting as it sounds, the surrounding populace, even the anti-Chavistas, might be less than thrilled with that option. Environmental problems and all.
When Chavez is pushing up daisies, Exxon would be a bit sheepish in asking the next Government of Ven. about opening another plant after blowing up the first and raining toxic waste on locals.
The best option is close to what Ben and Lugh suggested: take the essential big pieces and fry the computers. After which, Exxon could ask the US government to "interrupt" any new contracts to have the software re-installed or the critical nuts and bolts replaced.
Corporate counter-intelligence is a growth industry whether US companies or the US gov acknowledges it or not. US high-school patriots take notice. Your country needs you.
By Boghie, at
Fri Jan 19, 11:32:00 PM:
Maybe more interesting that blowing up the facility or deleting the software that controls the systems would be corruption of that software.
Changing tolerances CONSTANTS by a very small amount in the application code or databases would lead to either equipment failure and/or cause the operators to lack confidence. Thus, equipment would break, things would get destroyed, and the management would have no confidence in the automation refineries must have to function properly.
A slow and painful death of another socialist Mecca! They would not have the technology or skill to repair or replace the software.
By What is "Occupation", at
Sat Jan 20, 12:01:00 AM:
just have exxon leave the access code open to the black hatters..
let some mountain dew drining, hot pocket eatting 17 yr old hack and crash it from 5000 miles away...
By Alexis, at
Sat Jan 20, 12:17:00 AM:
Here's another idea: Counternationalization.
If Venezuela nationalizes any asset of an American oil company, Citgo can be nationalized with the proceeds going to American victims of Venezuelan nationalization.
We could also get rid of the ethanol tariff in order to give the rest of the Caribbean (and Brazil) a vested interest in opposing Hugo Chavez and his "petro-revolution".
By , at
Sat Jan 20, 12:31:00 AM:
Exxon Mobil's assets are the least of our worries. Do you think it was just a coincidence that the President of Iran visited Chavez just as Castro enters his death spiral? Chavez will have a huge influence in Cuba post-Castro. Let's see: Russia sells missiles to Iran; Chavez courts Cuba and becomes their sugar daddy; Iran provides Chavez with missiles; Chavez installs them in Cuba. Back to the Cuban missile crisis Scene II. Iran can then do nuclear weapons without fear of any attack by the US or Israel. US politicians sell out all friends in the mid-east in an effort to preserve the Homeland.
By , at
Sat Jan 20, 12:39:00 AM:
If ExxonMobil decides to blow up those refineries, then first they should fill them up with skunk pee.
Vilmos
By , at
Sat Jan 20, 12:42:00 AM:
leave nothing behind for the looters to live on.burn,explode,delete whatever.sieze all ven.assests anywhere,money planes,ships and shoot down any plane with hugo,castro,any dictator anywhere any time.it's time to call these people what they are.gangsters use the death penalty with no trial.
By DRJ, at
Sat Jan 20, 12:56:00 AM:
I think you may be underestimating Exxon/Mobil. It may not be able to stop Hugh Chavez from nationalizing its assets but it will do everything it can to make sure he "pays" for taking those assets.
By , at
Sat Jan 20, 01:15:00 AM:
Both sides of the aisles in the US should be against this action by Chavez. Seizing private property by the government is a travesty against basic human rights. The mishandling of natural resources is also a terrible wrong. Iran is currently losing 10-12% of its oil resources due to short-sighted goals and a lack of expertise. It is not unrealistic to expect the same poor management fron the Chavez government. This is a waste that would not only affect the citizens of Venuzuela, but would also impact the rest of the world.
By TigerHawk, at
Sat Jan 20, 07:25:00 AM:
We could also get rid of the ethanol tariff in order to give the rest of the Caribbean (and Brazil) a vested interest in opposing Hugo Chavez and his "petro-revolution".
Alexis, that is a very interesting idea I had not read before.
By , at
Sat Jan 20, 11:19:00 AM:
Exon probably would not have time to sabatoge the gear, unless they blew it up and ran for the border before Chavez made his move. That would cost money now, and there's always the fools who want to whine, "But, we really don't know if it's necessary! He might not have done that."
As an alternative, Exon could prepare by installing time bombs in the computers. This could be done by having an "Expert from the Vendor" come through and "update" the programs, and no one local any the wiser.
No seizure? No problem, and very little expense.
Phillep Harding
By Nasim Fekrat, at
Sun Jan 21, 07:46:00 AM:
Nice blog here. I like the posts
By , at
Sun Jan 21, 01:48:00 PM:
Exxon probably would not have time to sabotage the gear
All you need is access to the electrical rooms and some of the big pump motors.
In an hour or two I could rig it so the place would burn all its wiring and wouldn't run for at least a year.
