- 10 Apr 2019 22:09
#14998565
It is okay until you start to kill the goose that lays the golden eggs which is Venezuelan oil industry. As i said before, you have to reinvest in to the business and get newer technology and maintain or increase production. Create export chains where your oil can be sold or refined. Since this has been more or less neglected since Chavez so the oil industry went in to decline. The sanctions have very little to do with the current situation. If Venezuelas oil was so competitive then Europe and Asia would happily buy it, so why don't they?
1) China/Asia has very limited capability to refine Venezuelan heavy crude. Only US had ample capacity for this but now they have light oil shale.
2) Venezuelan oil industry suffers from mismanagement. The head of the Venezuelan company is an army general. ( Cronyism from Chavez/Maduro side)
3) Venezuelan oil industry does not get enough investment. ( Chavez/Maduro policies )
4) Venezuela does not have enough technical knowledge to decrease the cost of extraction or increase the volumes. ( Low technical base of country/No investment in cutting edge education)
5) Venezuela might not have even enough knowledge/manufacturing capacity to maintain current level. ( The equipment used is not manufactured in Venezuela and they do not have money to buy more)
6) Nobody is interested in heavy crude in general right now. It is hard to extract in Venezuela and it is costly to refine in general.
They didn't think about the things above so obviously their industry is fucked. This is incompetence 101.
I do not think that any nation is hopeless to change; however, I think that some nations do require a lot more effort than others to become changed. - Verv
QatzelOk wrote:Yes, war talk. Been there, done that. Americans must decide what is best to do "about Venezuela" (and about Iraq, and about Afghanistan, and about Syria, and about....)
The only question is which particular war of the USA (aka. multinational corporations) wars will trigger WW3.
Looking back as WW2: The Nazis were on a roll for a while in the late 30s, and sanctions were very thick in that period as well. And the Nazis couldn't imagine that anyone would be offended by all their invasions and meddling in neighboring countries. And neither could the British, French, or USA in that period. No one could see any danger in their super-militarization and predatorial economic system.
But will we as a species soon develop the capacity to see that the distribution system known as "capitalism" will destroy the earth? That its lies and incentivized greed are fatal?
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1. Redistribution of oil profits to locals is a good idea no matter what the price of oil is. Or are you saying that all profits should go to multinational coroporations, and any leftovers can be "thrown to the masses?"
2. I never blamed Guiado for anything regarding the economic structure of Venezuela. He's a young terror leader working for the CIA. He has no interest in the particulars of the economic model, he just wants some of the stuff that Trump "put on the table". (or under the table on a plastic plate )
It is okay until you start to kill the goose that lays the golden eggs which is Venezuelan oil industry. As i said before, you have to reinvest in to the business and get newer technology and maintain or increase production. Create export chains where your oil can be sold or refined. Since this has been more or less neglected since Chavez so the oil industry went in to decline. The sanctions have very little to do with the current situation. If Venezuelas oil was so competitive then Europe and Asia would happily buy it, so why don't they?
1) China/Asia has very limited capability to refine Venezuelan heavy crude. Only US had ample capacity for this but now they have light oil shale.
2) Venezuelan oil industry suffers from mismanagement. The head of the Venezuelan company is an army general. ( Cronyism from Chavez/Maduro side)
3) Venezuelan oil industry does not get enough investment. ( Chavez/Maduro policies )
4) Venezuela does not have enough technical knowledge to decrease the cost of extraction or increase the volumes. ( Low technical base of country/No investment in cutting edge education)
5) Venezuela might not have even enough knowledge/manufacturing capacity to maintain current level. ( The equipment used is not manufactured in Venezuela and they do not have money to buy more)
6) Nobody is interested in heavy crude in general right now. It is hard to extract in Venezuela and it is costly to refine in general.
They didn't think about the things above so obviously their industry is fucked. This is incompetence 101.
I do not think that any nation is hopeless to change; however, I think that some nations do require a lot more effort than others to become changed. - Verv