Venezuela threatens to cut US oil (again, lol)

[RedRalph]

Recently I heard on the radio, a proVenezuelan commercial that Citgo is providing heating oil to the poor people of New York city. It sounded somewhat like Communist propaganda, considering the source.

to a few cities, IIRC

 

[Ayatollah So]

There are other buyers and other sellers. Venezuela cutting off the pump to us will not severely hurt either country. That said, what the hell is up with Chavez?

To your statements: seconded. To your question: maybe he is just trying to bump up the price of oil for a while. Works for the Iranians every time, just rattle a few sabers and watch the money pour in! And then there's the domestic politics of the "confrontation". It's a two-fer!

Call it the "crazy like a fox" theory.

 

[Cheezy the Wiz]

We should mount a camera on your car, and wait till you are really needing
to put some gallons in the tank...When you sneak into a boycotted station
for that convenient top-up, we at CFC will leap out and embarrass you!

Maybe I'll get my own episode of Inside Edition!

 

[Whomp]

Venezuela has announced a string of deals with oil companies and the first oil field bidding round since Chavez took office in 1999, and industry sources report a marked change in tone from last year's wave of takeovers.

State oil company PDVSA may be seeking to stem growing cash flow and operational problems, only months after a wave of nationalizations that drove out two of the world's biggest energy companies.
One oil sector contractor who asked not to be identified said PDVSA this year has been speeding up contract talks.

"Last year they were telling me, 'You'll never see this work again' -- and now it's all about extending contracts and negotiating rate increases," he said.

This year alone, PDVSA has signed deals with Royal Dutch/Shell, Total and Statoil for oil-field studies.
Market observers say Venezuela's output is around 25 percent below official production figures of 3.2 million barrels per day, while exports to the United States of refined products tumbled last year amid chronic refinery outages.

Venezuelan central bank figures show oil-sector GDP, which measures activity in oil production, processing and transport, shrank 5.3 percent last year despite record income at PDVSA and borrowing of close to $13 billion in 2007.

Analysts say PDVSA's resources are being stretched thin by enormous social spending obligations that now include importing and distributing food to ease nagging shortages of groceries.

http://www.reuters.com/article/reut...ge&rpc=401&pageNumber=1&virtualBrandChannel=0

Let's get this straight...now that we have taken your money, we would like to invite you to invest more. Modern day Robin Hood, I say.

The bottom line is PdVSA owns 14 refineries globally worth ~$15 billion and about $20 billion of assets in the U.S. Depending on what the arbitrators decide my guess is Exxon (and Conoco Phillips) will want a good piece of the US assets.

This should be a very interesting test case. The next hearing by the U.K. court is scheduled for Feb. 22 while a hearing is scheduled in New York for Feb. 13 and I'm not sure about Holland.

 

[Princeps]

Recently I heard on the radio, a proVenezuelan commercial that Citgo is providing heating oil to the poor people of New York city. It sounded somewhat like Communist propaganda, considering the source.

Communist propaganda or not, the company is doing so at the request of dozen or so US American senators. IIRC. And it was the only company to the heed to the request to share some of the record profits that oil companies make these days.

 

[RedRalph]

Communist propaganda or not, the company is doing so at the request of dozen or so US American senators. IIRC. And it was the only company to the heed to the request to share some of the record profits that oil companies make these days.

True. the unreported side of Chavez' evil communist policies

 

[T.A JONES]

I'd love to see him do this and sink the Venezuelan economy in the process. Maybe it can finally get this guy overthrown.

If Chavez switched to payment in Euros he will get 'overthrown'. If he cuts off America but still takes Their doller they will let him be. Who profits when other countires demand Americian dollers for their fuel purchases?. Its the fact that America's economy plummets when its currency isn't being bought in the energy sector that we should be aware off.


Saddam had the smart idea to start taking the Euro Doller as payment for sales from his 2nd largest oil supply in the world. Luckily for American intrests 911 happend less then year later.

Forget Venny, whats scary is a while back Iran started similar threats. They've been played up and scrutinized over impending weapons of mass destruction ever since.

With are forces and grand embassy being built in the region we should be able to exert are influences over his allies. What sucks is Terrain may be the factor that says no to seizure of their supply like we did Iraq's, stopping the sale in Euros as soon as USA took power, if he ever did take bold action

Iran running at the mouth is the real threat to the American Petro doller.
America can always use diplmatic means to retrive its fair share from Venezuela supplys when its their doller other countries are forced to pay with.

Unless Im forgoing something here, it seems the real threat is largely being ignored by the media.