Chavez Steals from the Eeeevil Capitalists

Hugo Chavez moves forward with his plans to nationalize the Venezuelan oil industry:

On Tuesday, BP PLC, ConocoPhillips, Exxon Mobil Corp., Chevron Corp., France's Total SA and Norway's Statoil ASA will turn over their Orinoco operations to Venezuela's state oil company, Petroleos de Venezuela SA. Chavez, who says he is reclaiming the oil industry after years of private exploitation, is expected to be accompanied by troops and workers clad in revolutionary red amid fly-bys by the military's new Russian-made fighter jets.

This sort of maneuver is typical of socialist states, which start bleeding their cash cows to shore up their sagging economies. Chavez, however, isn't out of the woods yet - he's got to worry about refining his oil or it's pretty much useless. That leaves a little leverage in the hands of the displaced oil companies.

Dave in Texas explains the situation.