BlackPawnMartyr

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Its Tulane bro

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The Panicans are going to have an epic meltdown

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from the 1910s through the 1950s, Venezuela granted concessions mainly to U.S. and British companies

Low royalties at first: Early deals paid Venezuela very little per barrel.

Tax advantages: Companies had wide latitude to deduct costs and minimize taxable profits.

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Venezuela pushes back: the 50/50 profit split

In 1948, Venezuela pioneered a major shift:

Introduced a 50/50 profit-sharing system

Companies still controlled operations, but government revenues rose sharply

At this point, the deal was much closer to fair by international standards.

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By the 1970s:

Oil prices had surged

Producing countries had strong leverage

Many nations moved toward:

State ownership

Production-sharing agreements (PSAs)

Full nationalization

Compared to newer models:

Venezuela still lacked operational control

Foreign companies still repatriated large profits

Pricing power increasingly favored companies

So what once looked fair in 1948 looked outdated by 1975.

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When Venezuela nationalized:

Companies were compensated

Assets were purchased rather than seized outright

No mass confiscations like in Iran (1951) or Russia (1917)

The U.S. government did not impose major sanctions

Relations remained functional for years

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If this is true...then why are we just now hearing about it over a year later?

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