Bolivia’s Morales just nationalized the oil and gas industry. This is part of an epidemic of governmental looting that is spreading across South America, and will serve to discourage energy majors from making the investments necessary to develop the region’s reserves. As Gal Luft was quoted in today’s New York Times article on the issue, “This isn’t like Saudi Arabia, which over the years has developed a know-how to dominate the industry independently [...] When you cause problems for foreign investors, you cause problems for those who know how to create and develop the industry.”
For background, read/watch Anne Korin’s March 2, 2006 testimony before the House Subcommittee on the Western Hemisphere.