Mayday

Mayday

Andean

The May 1 threat issued by Evo Morales, Bolivia's president, to kick oil and gas majors out of his impoverished Andean country, was as surprising as it was expected. Celso Amorim, Brazil's foreign minister, rushed back from Geneva to deal with the fall-out to his country from the announcement. The nationalization is a bad deal for Brazil, and likely a bad deal for Bolivia, too. Worryingly, 75% of the natural gas consumed in the Brazilian megalopolis São Paulo comes from Bolivia. And Bolivia supplies all of the fuel used in Brazil's southern states. Given that Brazil has no alternative supply lines in place, and lining them up would takes years, it has to pay whatever price Bolivia asks,

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