[T]hugo Nationalizes Oil Industry

[T]hugo is definitely intent upon running Venezuela's economy into the ground. First thing he's doing is attacking the country's chief export - oil.

President Hugo Chavez ordered by decree on Monday the takeover of oil projects run by foreign oil companies in Venezuela's Orinoco River region.

Chavez had previously announced the government's intention to take a majority stake by May 1 in four heavy oil-upgrading projects run by British Petroleum PLC, Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), ConocoPhillips (COP) Co., Total SA (TOT) and Statoil ASA. (STO)

He said Monday that has decreed a law to proceed with the nationalizations that will see state oil company Petroleos de Venezuela SA, or PDVSA, taking at least a 60 percent stake in the projects.

"The privatization of oil in Venezuela has come to an end," he said on his weekday radio show, "Hello, President.""This marks the true nationalization of oil in Venezuela."

This also marks the beginning of a downward spiral in oil output from Venezuela as companies will begin to look elsewhere - more stable countries and regions to operate within.