Prometheus 6

2 Oil Firms Are Defiant in Venezuela
By SIMON ROMERO and CLIFFORD KRAUSS

HOUSTON, June 26 — ConocoPhillips and Exxon Mobil refused on Tuesday to meet Venezuela’s deadline to reach an agreement on ceding control of their major oil production ventures, in what could be their imminent separation from billions of dollars in investments.

The possible rupture with the two companies was viewed by oil analysts as a sign that President Hugo Chávez was pressing ahead with efforts to assert greater authority over some of the most coveted oil reserves in the Western Hemisphere. It came after months of negotiations in which several of the world’s largest private oil companies tried to salvage some kind of minority ownership role in Venezuela, one of the largest sources of oil for the United States.

The possible exit of two major American oil companies from Venezuela may not have an immediate impact on American energy supplies, but any increase in oil prices that does result will only help Mr. Chávez finance his broadening government social policies.