Capitalism will save this world
- Thread starter Angstrom
- Start date
Just devalue the currency, crank up the interest and spur inflation. No biggie for the Govt. just everyone else.
You can buy a loaf of bread in Romanian for 10 cents but there is no hyperinflation here. Not at all.
No refineries means no refineries
.....................
U.S. sanctions on Venezuela would reroute crude, leave refiners short
(Reuters) - Potential U.S. sanctions on Venezuela’s crude oil exports would cut off the nation from Gulf Coast refiners that are among its biggest customers, likely forcing it to send more crude to China, India or other Asian countries, traders said on Wednesday."
U.S. refineries that depend on Venezuela’s heavy crude would have even more trouble securing supplies as Canadian and Mexican crudes are often not as discounted and are limited in availability.
The United States is considering moves to cripple Venezuela’s oil shipments, which account for nearly all of the country’s exports, in response to the reelection of President Nicolas Maduro that was widely viewed as a sham.
Washington has recognized opposition leader Juan Guaido as Venezuela’s president as protests against Maduro erupted across the country. It is also considering sanctions on oil deliveries, a move it has until now resisted, energy company sources told Reuters on Wednesday.
Venezuela, on average, exported about 500,000 barrels of crude a day to the United States in 2018, according to U.S. Energy Department data. Those shipments fell in November to an estimated 358,000 barrels per day, however, according to a report by Caracas-based consultancy Gas Energy Latin America seen by Reuters.
The U.S. share of its exports has declined in recent years with more shipments going to Russia and China. [GRAPHIC: Venezuelan crude exports to the United States: tmsnrt.rs/2S4YIXB]
Those deliveries are being made largely through oil-for-debt repayment structures as output from state-run oil company Petróleos de Venezuela, S.A., known as PDVSA, has slumped to near 70-year lows in a nationwide economic crisis. Venezuela’s output has been cut in half since 2016 to less than 1.2 million bpd, according to figures from OPEC secondary sources.
Shipments to the United States account for about 75 percent of the cash Venezuela gets for crude shipments, according to a Barclays research note published last week.
In the wake of sanctions, the country could seek additional deals with Turkey, India or other Asian nations, one trader of Venezuelan crude said. Gas Energy’s report said India was the second-largest importer of Venezuelan crude in November.
“It will be costly for Venezuela but eventually they’ll be able to sell that oil to Asia at a discount. There will be a period in the middle in which they have difficulty selling those barrels,” said Francisco Monaldi, fellow in Latin American Energy Policy at the Baker Institute for Public Policy at Rice University in Houston.
Though the United States produces nearly 12 million barrels of oil a day, complex Gulf Coast refineries need heavier crude grades to produce diesel and other high-margin products, and cannot simply sub in light crude.
Prices of heavier U.S. grades like Mars Sour, an offshore medium U.S. crude, and Heavy Louisiana Sweet crude have risen as buyers scramble for supply. Mars traded at a $6.90 premium to U.S. crude on Wednesday, a five-year high, according to Refinitiv Eikon data, as bidders came into the market to secure supplies through the second quarter, traders said.
“It would make a tight market even tighter. If it happens, it would be an unambiguous headwind for refiners already struggling to find supplies,” said Bob McNally, president of Rapidan Energy Group, an energy consultancy in Bethesda, Maryland."
more
https://www.reuters.com/article/us-venezuela-politics-usa-oil-graphic-idUSKCN1PH2GU
Yep they successfully turned back a few tankers of refined products from reaching the Venezuelan coast, why can't Venezuela refine their own oil NZ?
U.S. sanctions, basically.
Explainer: Why oil-rich Venezuela is suffering severe gasoline shortages
(Reuters) - At least five Iranian tankers carrying fuel are currently en route to gasoline-starved Venezuela, which has the world’s largest crude reserves. The United States, which maintains sanctions on both OPEC members, is weighing a response to the supply.
Below is a summary of the factors contributing to Venezuela’s gasoline shortage:
WHY ISN’T VENEZUELA PRODUCING ENOUGH GASOLINE?
State oil company Petroleos de Venezuela’s [PDVSA.UL] refinery network has the capacity to produce 1.3 million barrels per day (bpd) of fuel. But after years of underinvestment and lack of maintenance, those refineries processed just 101,000 bpd of crude and produced just 7,000 bpd of gasoline in March, according to an internal PDVSA document.
The South American country’s gasoline consumption has dropped significantly in recent months due to a quarantine designed to stop the spread of the coronavirus. Authorities are distributing just 30,000 bpd of gasoline to service stations across the country, according to an industry source, compared with pre-lockdown consumption of about 170,000 bpd.
CAN’T VENEZUELA IMPORT GASOLINE?
In recent years, PDVSA has accepted imported fuel as payment for its crude exports. But these so-called swaps with its main partner, its U.S. refining subsidiary Citgo, were interrupted when the Trump administration sanctioned PDVSA in January 2019 as part of its bid to oust Maduro, a socialist.
Since then, Washington has also pressured PDVSA’s other trade partners, such as Spain’s Repsol (REP.MC), Italy’s Eni (ENI.MI) and India’s Reliance, not to supply gasoline, though they had been given permission to ship diesel, which is seen as necessary for distribution of food and other vital goods.
The shortages grew far more severe after Russia’s Rosneft (ROSN.MM), which in 2019 became the main intermediary for Venezuela’s crude and its main fuel supplier, halted operations in the country in March, after Washington sanctioned two of its trading units for dealing with Venezuela.
IS THE GOVERNMENT TRYING TO IMPROVE THE SITUATION?
PDVSA is trying to restart the catalytic cracking units - which are fundamental for gasoline production - at the 146,000 bpd El Palito refinery <C}RO7309414339> and the 310,000 bpd Cardon refinery, which has received materials to help its restart via plane shipment from Iran.
In addition to the pending imports of fuel from Iran, the country received a 150,000-barrel shipment of gasoline in late April from Maroil Trading, a Venezuelan fuel magnate who in 2002 had come to late President Hugo Chavez’s rescue by shipping gasoline to the country during a PDVSA strike.
https://www.reuters.com/article/us-venezuela-gasoline-explainer-idUSKBN22V32G
But after years of underinvestment and lack of maintenance, says it all right there . Don’t worry Chavez’s daughter got a nice fat Swiss bank account instead .
Its a little bit deeper than that.
....................................................
United States National Security Advisor John R. Bolton outlined the policies of the administration of United States President Donald Trump towards Venezuela in a November 2018 speech, describing Venezuela as part of a troika of tyranny, along with Cuba and Nicaragua.[18] Bolton has alternately described the three countries as the "triangle of terror"[19] and the "three stooges of socialism",[20] stating that the three are "the cause of immense human suffering, the impetus of enormous regional instability, and the genesis of a sordid cradle of communism in the western hemisphere".[19] The United States has condemned actions of the governments of the three Latin American nations and has maintained both broad and targeted sanctions against their leadership.[19]
Into 2020, President Donald Trump expressed that he believed that the removal of Maduro from office was occurring to slowly and that incremental processes, such as sanctions, did not provide results.[21] Because such processes to remove Maduro were unsuccessful, President Trump began to consider military options, including a naval blockade against Venezuela.[21]
Under EO 13692, the Obama administration sanctioned seven individuals, and the Trump administration has sanctioned 73 as of 8 March 2019.[8]
https://en.wikipedia.org/wiki/International_sanctions_during_the_Venezuelan_crisis
Pages and pages af sanctions, threats, intimidation.
What good would that do?
The bounty on Maduro is 20 million.
Maybe he could resign for the money and safe passage if he was only concerned with his own self interests.
You can't possibly believe Pompeo and the gang.....
The bounty on Maduro is 20 million.
Maybe he could resign for the money and safe passage if he was only concerned with his own self interests.
You can't possibly believe Pompeo and the gang.....
Really ? Who is sponsoring this bounty ? Shit I may come out of retirement for that money . The return of the old and the restful .
What does US sanctions got to do with extracting your own Oil and boiling it down in your own refinery to produce usable fuel for your own equipment?
Another bit of Fakebook ideology borrowed from one flunky on Facebook and re-posted here by our own Facebook addict!
And that's why State oil company Petroleos de Venezuela’s [PDVSA.UL] refinery network has the capacity to produce 1.3 million barrels per day (bpd) of fuel. But after years of underinvestment and lack of maintenance, those refineries processed just 101,000 bpd of crude and produced just 7,000 bpd of gasoline in March, according to an internal PDVSA document?