Watchdog warns of ‘dangerous’ trend on energy

Bolivia’s energy nationalisation policy has sent a chilling message to international oil companies that will jeopardise future investments in the country, the International Energy Agency warned on Wednesday.

The west’s energy watchdog said some Latin American countries were “embarking on a dangerous path” by altering their relationships with multinational energy companies. It also highlighted a worrying trend of energy nationalism that was closing markets to consumer countries, such as Spain and France.

..Mr Ramsay warned Bolivia against following the Venezuelan example. “If you don’t get the balance right between the companies’ interest and the country interest, the country ultimately will lose. Look at the production capacity of Venezuela: it has fallen dramatically. That is the price.”

Venezuela has increased its grip on its oil industry and confiscated oilfield operations of Eni of Italy and Total. At the same time, Ecuador has also changed its oil contracts.

“They are initiating a process that could be dangerous,” Mr Ramsay said. “They are not necessarily making a mistake, but they are embarking on a dangerous path.”

Financial Times