For centuries, Bolivia made it easy for prospectors to mine, from the Spaniards who plundered gold to the tin barons of the 19th century to the multinational energy companies that flocked here in the 1990s to develop Latin America's second-largest natural gas deposits.
But like many energy-producing countries these days, Bolivia has pulled the welcome mat. With an angry population demanding a larger share of the benefits, and some groups even calling for outright expropriation, the government recently raised royalties and taxes to among the highest levels in Latin America.
It would appear to be an exceptional episode of revolutionary zeal translated into energy policy. But Bolivia is just the latest of several oil- and gas-rich countries in Latin America and beyond that are squeezing energy companies like never before.
With prices of crude oil and natural gas at record highs, and ideology increasingly propelling government policymakers, countries are demanding a larger slice of the pie. In some cases, they are unilaterally canceling long-term contracts that gave energy companies highly favorable terms.
"They think that since there is more revenue coming in, they can take a much harder line in negotiations," said Lawrence Goldstein, president of the Petroleum Industry Research Foundation, an industry-financed analysis group in New York.
"In some cases, they don't even need to negotiate," he said.
no role
Many of the world's giant energy producers, among them Saudi Arabia, Kuwait, Iran and Mexico, play no role in the trend since their state-owned companies either fully control or dominate production.
But Russia, Venezuela, Kazakhstan, Nigeria and Algeria, together accounting for 20 percent of the world's global supply but dependent on foreign and private domestic companies, are another story.
They are among the countries that are tightening the terms -- sending a message that has reverberated in the industry at a time when supplies are tight. Some industry representatives call the new terms a chokehold that will slow investments, just as the world needs more oil to lower prices.
"Both the tighter terms and the fluidity of contract terms will cause companies to second-guess further investment," said Michelle Billig, director of political risk at PIRA Energy Group, a New York consulting firm.
"The willingness of countries to change the terms halfway through the project complicates any type of investment decision because you don't know what terms you're going to have at the end of the project," he said.
To governments, though, the squeeze is justified because of the huge amount of money that oil companies are generating. A barrel of oil traded above US$60 last week, before settling last Friday at US$58.75. Natural gas, which has doubled in price in the US in five years, is in high demand the world over.
"They've never had earnings of this order," said Victor Poleo, a left-leaning oil economist in Venezuela. "So this awakens an insatiable appetite in governments for that income."
The increasing prices have been a windfall for oil companies, which are registering record profits.
Exxon Mobil Corp saw profit jump 44 percent to US$7.86 billion in the first quarter of this year, while Royal Dutch/Shell's profit climbed by 28 percent. The combined net income of the four biggest oil companies -- Exxon Mobil, BP, Shell and ConocoPhillips -- increased 39 percent from a year earlier, the companies reported in April.
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