It hurts to be so right, especially when people suffer. Here's the AP feed on Bolivia from friday:
LA PAZ, Bolivia (AP) -- The Bolivian government on Friday ordered foreign oil companies operating in Bolivia to increase their liquid gas production to end shortages that have triggered unrest and protests.
The companies were told to "operate their facilities at maximum capacity and improve the output of products that are in short supply," according to a decree signed by President Eduardo Rodriguez that came into effect Friday.
The shortage of gas for domestic use -- cooking and heating -- has turned into a political problem for the government, as hundreds of residents, especially women, block streets in La Paz and a neighboring city. Long lines appear every day at the few sites that have gas to sell.
The problem is especially frustrating for some as Bolivia has the second largest gas reserves in South America, after Venezuela. But in recent months there have been virtually no investments in the sector, after the enforcement of a law that steeply increased taxes levied on oil companies.
Authorities initially blamed the gas shortage on the black-market export of the product to neighboring Peru, where the price for the gas is almost 10 times that in Bolivia.
But authorities now say that the problem is that companies have decreased production.
The association of private producers, however, rejected the government's claim, saying production this year has increased by 6 percent.
The government last month said that the short supply of gas soon would cause power failures in some cities.
ARGH! I don't have the time of patience to back-cite my many furious articles, railing against Bolivian protestors who were essentially shooting themselves in the foot by blockading the country for a quarter of this year. I claimed the country couldn't keep the lights on without those intl. oil companies. Now we know they can't. Let alone their demand for full government control of the gas and oil industry- all they did so far was impose a stricter tax, and already people are going without cooking oil. In Bolivia, where all the staple foods are fried (not kidding here), this shortage is indeed a crisis.
If they attempt to socialize the industry, they'll lose the whole thing - gas, oil, investments, street lights. That is extremely sad, because it is the poorest people who will suffer the most, as usual. Thanks South America socialist leaders, you are really coming through for the working man once again...
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