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LibraryLady
10-13-2008, 01:41 AM
Venezuela's oil output slumps under Hugo Chavez (http://www.telegraph.co.uk/news/worldnews/southamerica/venezuela/3183417/Venezuelas-oil-output-slumps-under-Hugo-Chavez.html)

Venezuela's daily oil production has fallen by a quarter since President Hugo Chavez won power, depriving his "Bolivarian Revolution" of much of the benefit of the global boom in oil prices.
To win allies and forge an anti-American front, Mr Chavez sells oil to friendly countries at low prices. Ironically, the only big customer buying Venezuelan oil at the full market price is the United States, which the president routinely denounces as the "Empire".

"As production falls, the sales to the US become more important," said Pietro Donatello, an oil analyst from Latin Petroleum in the capital, Caracas. "Only the US is paying the full amount for Venezuelan oil and in cash, the rest are in some kind of barter agreements."

The state oil company, PDVSA, produced 3.2 million barrels per day in 1998, the year before Mr Chavez won the presidency. After a decade of rising corruption and inefficiency, daily output has now fallen to 2.4 million barrels, according to OPEC figures. About half of this oil is now delivered at a discount to Mr Chavez's friends around Latin America. The 18 nations in his "Petrocaribe" club, founded in 2005, pay Venezuela only 30 per cent of the market price within 90 days, with rest in instalments spread over 25 years.

The other half - 1.2 million barrels per day - goes to America, Venezuela's only genuinely paying customer.

Meanwhile, Mr Chavez has given PDVSA countless new tasks. "The new PDVSA is central to the social battle for the advance of our country," said Rafael Ramirez, the company's president and the minister for petroleum. "We have worked to convert PDVSA into a key element for the social battle."

The company now grows food after Mr Chavez's price controls emptied supermarket shelves of products like milk and eggs. Another branch produces furniture and domestic appliances in an effort to stem the flow of imports. What PDVSA seems unable to do is produce more oil.

Venezuela has proven reserves of 80 billion barrels, but estimates suggest that it may possess 142 billion barrels - more than anywhere else except Saudi Arabia. But the crude is of low quality and must be upgraded before it can be shipped. There are only three upgrade units currently operating, processing only 600,000 barrels per day.

"There is a bottleneck in the Venezuelan production system," said Mazhar al-Sheridah, 68, an oil expert at the Central University of Venezuela. "It will cost at least $32 billion to build another three upgrading units and take some five years, meaning that Venezuelan production is stuck at current levels for a while yet."

All this means that Venezuela has missed much of the benefit from the oil boom and, now that prices are falling, Mr Chavez faces huge financial problems. Nobody is sure at what point his government would be unable to pay its bills, but most sources consulted believe this would probably happen if oil falls to $80 a barrel. Yesterday, oil was trading at $79.80.

LogansPapa
10-13-2008, 01:46 AM
Gee - we out to cut this guy off and drill for our own 1.2 million barrels a day, that will come on line 2-1/2 presendencies from now.......:o Nevermind.

biccat
10-13-2008, 09:49 AM
http://www.cnn.com/TECH/science/9806/12/offshore.drilling.pm/

Goldwater
10-13-2008, 03:27 PM
Of course it's slumped, he has driven the private companies out and nationalized them, he is an idiot who will drive the country into the ground.

LibraryLady
10-13-2008, 03:31 PM
And Pelosi wanted to nationalize our oil

LogansPapa
10-13-2008, 03:41 PM
And Pelosi wanted to nationalize our oil

Instead, we'll nationalize our banks. :cool:

Constitutionally Speaking
10-13-2008, 09:23 PM
Gee - we out to cut this guy off and drill for our own 1.2 million barrels a day, that will come on line 2-1/2 presendencies from now.......:o Nevermind.


That time frame is not accurate LP, and MOST of it is dealing with the permit process. Actual time to bring much of it to market is 18 months. This is according to my source at Transocean (and other companies) - one of the significant players in the oil market.

LibraryLady
10-13-2008, 09:53 PM
OPEC calls emergency meet as oil slides below $80


OPEC has announced that it will hold an emergency crisis meeting in Vienna on 18 November a month ahead of its original meeting in December to discuss a cut in production as oil prices plunged to a 13-month low, sliding below the $80 mark on Friday.

The world's richest cartel wants to constrict supply in a bid to prop them at $80 a barrel or more.

Oil prices had soared in the first half of the year and touched a record high of above $147 a barrel, but with the ongoing global financial crisis, which the price of oil has slid below the $80 mark.

Many experts and the OPEC had predicted in the middle of the year that crude would break the $200-per barrel mark.

http://www.domain-b.com/industry/oil_gas/20081013_emergency_meet.html

lacarnut
10-15-2008, 02:19 PM
Instead, we'll nationalize our banks. :cool:

Don't worry; the Feds will nationalize bankrupt states like CA & NY. Happy days are ahead cause Arnuld will fix it. Another term for Bloomey will also do the trick.

LogansPapa
10-15-2008, 02:24 PM
That time frame is not accurate LP, and MOST of it is dealing with the permit process. Actual time to bring much of it to market is 18 months. This is according to my source at Transocean (and other companies) - one of the significant players in the oil market.

http://www.terragalleria.com/images/us-ca/usca34675.jpeg

Yep - having lived in a city since 59' that's been pumping oil for the last century - I wouldn't know anything about that.:rolleyes:

lacarnut
10-15-2008, 02:35 PM
http://www.terragalleria.com/images/us-ca/usca34675.jpeg

Yep - having lived in a city since 59' that's been pumping oil for the last century - I wouldn't know anything about that.:rolleyes:

The stupid is strong in the kool-aid state with the anti-drilling nutty CA politicians.

Constitutionally Speaking
10-15-2008, 08:55 PM
http://www.terragalleria.com/images/us-ca/usca34675.jpeg

Yep - having lived in a city since 59' that's been pumping oil for the last century - I wouldn't know anything about that.:rolleyes:


I'm telling you, 18 months (on the short side) - if govt. allows it.


Multiple sources that I trust from multiple companies that are directly involved in bring oil to us.

LogansPapa
10-15-2008, 09:51 PM
I'm telling you, 18 months (on the short side) - if govt. allows it.


Multiple sources that I trust from multiple companies that are directly involved in bring oil to us.

http://hometown.aol.com/vesnan/BullShit.gif

PoliCon
10-15-2008, 11:02 PM
socialism/communism always makes things slump. It removes the incentive to produce.

LogansPapa
10-15-2008, 11:05 PM
Where will the floating drilling rigs come from?:confused: (in 18 months):p

Aaron Burr
10-16-2008, 04:17 AM
We should check these guys out. Looks like we can get some good deals on used equipment.

http://www.rigbuilders.com/

Odysseus
10-16-2008, 01:12 PM
Gee - we out to cut this guy off and drill for our own 1.2 million barrels a day, that will come on line 2-1/2 presendencies from now.......:o Nevermind.
If we'd done it 2.5 presidencies ago, we wouldn't be having this conversation. If we don't do it now, this conversation will still be going ten years from now. Just because something will take time is not an excuse for not doing it. That's the instant gratification that children (and leftists) demand. Adults plan for the future.

Where will the floating drilling rigs come from?:confused: (in 18 months):p
Halliburton. Get over it.