Socialist Threat in America's Backyard
FOX NEWS Neil Cavuto interviews Craig Smith, Bob Dornan and Col. David Hunt

Summary by David Bradshaw, Idea Factory News
May 2, 2006

Neil Cavuto: Host, Cavuto on Fox
What if I told you the global hot spot we need to focus on is not Iran, but instead it's right in our backyard? Meet someone who says our very life is on the line? Is America facing a new axis of evil?

Steve Harrigan, Fox reporter, LaPaz, Bolivia
Yes, Bolivia president Morales has sent out the troops to where oil is made and sold delivering an ultimatum to oil and natural gas producers and refiners as he promised when first elected. Local response is positive as Morales promises the money will go to the people. He said he was going to be America's worst nightmare.

Has there been any violence?

Steve Harrigan:
So far no violence, but troops are there to force privately owned oil and gas companies to acknowledge they have six months to agree to give up 80% of their profits to the government or get out. Several oil firms have big investments of over $3 billion in exploration over the last ten years and now they're being told sign a deal our you're out.

Is this a new anti-Americanism forming in South America?

Steve Harrigan:
It appears to be in the same path as Castro in Cuba, Chavez in Venezuela and now Morales in Bolivia saying very harsh things about the U.S. This threesome could get bigger with leftist governments in Peru and Equador and they're all starting to take over the energy companies to nationalize them.

How worried should we be about this wave of socialism?

Bob Dornan:
This is a very, very dangerous situation because once they get into power they cripple the opposition. As we have learned with Castro who has caused mischief for decades, it does not bode well. It could become a nightmare, frankly.

Have we put so much attention on fighting the war in the Mid-East that we've overlooked a dangerous situation in our own backyard?

Craig Smith:
Yes. We also can see an illustration of the inherent dangers of investing in overseas oil and gas exploration, as Steve just pointed out. $3 billion was invested in exploration for gas and oil and now those assets can be taken away from companies like BP and Exxon-Mobil in Bolivia. Where is Bolivia going to get the money, what rate are they going to pay? It could turn into a real mess.

Does the Bolivian government have the expertise to manage oil and gas facilities?

Bob Dornan:
Let us not forget that blackmail is a viable option in today's tight energy markets. I remember when Mexico nationalized oil and Chevron was kicked out, sending them to Saudi Arabia. If our big companies don't cave into their blackmail, they will turn to China, India, Russia. China and Russia have demonstrated that they are willing to go anywhere and buy oil from anyone.

Does this represent a military threat?

Col. David Hunt:
Oil is a weapon! We must very very careful in dealing with this situation or it could become a military threat. Near term we may be forced to take military action.

How about the economic impact? More energy independence the key?

Craig Smith:
Right on the button. If we don't have strong reasons to explore for oil and gas in our own country now, we never will. We need to become less dependent upon the volatile parts of the world and find the oil and gas we have in proven reserves of ANWR, Outer Continental Shelf, etc. It can be done.

Bob Dornan:
We are facing a growing network of hatred for America, we need to cut through the tape and develop our natural resources for the love of country and our military. Let's share our nation's natural resources with all taxpayers.

Thank you all.

Watch this FOX News segment
Read more about today's "Black Gold Stranglehold"

DISCLAIMER: All of the provided information is believed to be accurate, however errors are possible. The opinions in the Commentary section do not necessarily reflect the opinions of Swiss America. Past performance of any investment is no guarantee of future performance. All investments have risk.

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