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Author Topic: Chavez death brings uncertainty to OPEC member Venezuela Back to Topics
DoctorV

Champion Author
Detroit

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Message Posted: Mar 5, 2013 6:21:46 PM

Crude oil has always been the grease of the political machine in modern Venezuela, but the Chavez administration took this to a new level. In the name of his socialist revolution, Chavez put into place a policy based on extracting the most money possible out of the country's oil reserves to use for social aid in poorer communities for his staunchest supporters. But the opposition and many outside analysts say his government's lack of investment in the industry has undercut its success.

Oil production in 1998, when Chavez took office, was about 3.2 million b/d. In 2011, that had declined to 2.991 million b/d, according to government figures, which most analysts say are inflated. Platts' most recent estimate for Venezuelan production was 2.32 million b/d in January.

Some analysts considere
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DoctorV
Champion Author Detroit

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Message Posted: Mar 7, 2013 11:46:04 AM

Chávez Gone, Big Oil Restrictions Remain

Exxon Mobil and Conoco Phillips were forced out of Venezuela in 2007, due to Chávez's strict control. Exxon and Conoco brought multiple complaints against Venezuela and state-owned Petróleos de Venezuela. Some of the complaints were based on Chávez's 2007 nationalization of the former Cerro Negro (now Carobobo) exploration area in the Orinoco Belt, which was found to have 15 billion bbl of heavy / extra-heavy crude oil.

Exxon demanded as much as $12B from Venezuela after Cerro Negro was nationalized. The company was awarded $746M by the International Chamber of Commerce; however, Chávez said he would only repay a fraction of the award.

Though Exxon and Conoco faced difficulties under Chávez, Chevron has enjoyed a better relationship. Last year the oil giant extended a $2B credit line to increase output in joint ventures with PDVSA.

The difference between Venezuela's antagonistic relationship with Exxon and Conoco, versus its more friendly relationship with Chevron is representative of a classic Chávez dictatorial maneuver. Conoco's first ever overseas project took place in Venezuela in 1946, however the company left after its projects were swept into Chávez's nationalization effort. Conoco was awarded $66.8M, and again Chávez announced he would not pay.

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DrCashFlow
Champion Author Massachusetts

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Message Posted: Mar 7, 2013 3:47:52 AM

steadily declining production
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NedW
Champion Author Indianapolis

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Message Posted: Mar 7, 2013 1:32:37 AM

Good riddance, Chavez.
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doctorindyj
Champion Author Santa Fe

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Message Posted: Mar 6, 2013 5:38:26 PM

Uncertainty? Chavez set himself up as dictator for life so his successor(likely Nicolas Maduro his VP) will have little trouble with pesky things like an objective press or fair elections. Through it all I guarantee they will not be cutting short their shipment of oil. Thanks to El Comandante they make nothing else, they have nothing else and foreign or domestic investment is non existent. 90% of their economy is oil and will have to continue flowing no matter what.

[Edited by: doctorindyj at 3/6/2013 5:38:50 PM EST]
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DanMtz
Champion Author Oakland

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Message Posted: Mar 6, 2013 1:48:21 PM

Can Venezuela dredge up a bigger clown to run their country?
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oilfreak
All-Star Author Houston

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Message Posted: Mar 6, 2013 11:59:34 AM

Let's see what's in store for Venezuela and the world after the death of Chavez.
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drpepperTX
Champion Author Texas

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Message Posted: Mar 6, 2013 10:21:11 AM

Yep, we'll have to wait and see.
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streetdesign
Champion Author Illinois

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Message Posted: Mar 6, 2013 8:32:58 AM

Midwest refineries use their crude so it will be interesting to see what will happen. An increase in production might help in combating high crude prices which the speculators don't want.
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Radar1992
Champion Author Virginia

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Message Posted: Mar 6, 2013 6:47:37 AM

We are relying less and less on their oil.....they have reserves but no production....

Little or no impact...
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FocusST2
Champion Author North Carolina

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Message Posted: Mar 6, 2013 6:25:11 AM

Watching to see what will come of Venezuela and it's oil.
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dandvicb
Champion Author Bridgeport

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Message Posted: Mar 6, 2013 6:08:33 AM

who takes over, gas just will keep going up!
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NedW
Champion Author Indianapolis

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Message Posted: Mar 6, 2013 3:30:03 AM

Why do I see another Obama buddy taking his place?
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JohnofGB
Champion Author Flint

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Message Posted: Mar 6, 2013 12:41:22 AM

That was one person that I will not miss. Lets see if their VP can con the populace like Chavez did.
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MN1
Champion Author Twin Cities

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Message Posted: Mar 6, 2013 12:33:44 AM

Could be interesting.
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Previvor
All-Star Author Virginia

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Message Posted: Mar 6, 2013 12:07:29 AM

Im curious to see how this will affect our prices in the US?
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esq262
Champion Author Asheville

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Message Posted: Mar 5, 2013 10:04:45 PM

No tears here.
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TomT2Lee
Champion Author Cincinnati

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Message Posted: Mar 5, 2013 9:38:40 PM

One grain of sand on a vast beach of professional con artists in power.
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doeslayersr
Champion Author Illinois

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Message Posted: Mar 5, 2013 9:19:51 PM

One socialist at room temperature.... so many more to go.
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nsdp
Champion Author San Antonio

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Message Posted: Mar 5, 2013 9:12:38 PM

No Dan he will be attending your funeral in celebration of another successful drone attack. It is on its way to Denver now.
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danindenver
Champion Author Denver

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Message Posted: Mar 5, 2013 8:31:18 PM

Will Obama be attending the funeral out of respect for his "good friend"?

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Cothrom
Champion Author South Carolina

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Message Posted: Mar 5, 2013 8:13:23 PM

This current event may have an effect on our prices
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slicerette
Champion Author South Bend

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Message Posted: Mar 5, 2013 8:06:05 PM

I cannot imagine anyone doing a worse job of managing a nation's wealth.

Hugo Chavez fired 18,000 highly skilled oil workers and replaced them with political hacks. Venezuela's oil production dropped at least a third. Venezuela lost billions.

Hugo Chavez ripped off millions from Venezuela's oil company maintenance. Venezuela's largest refinery exploded, killing hundreds and forcing Hugo to import gasoline.

Hugo Chavez borrowed billions from China. China forced Hugo to pay them back with $5 a barrel oil. And then China sold the oil at a huge profit.
Hugo Chavez left a legacy of death and destruction.
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LetemEatCake
Champion Author Oklahoma City

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Message Posted: Mar 5, 2013 8:05:58 PM


This is going to be interesting to watch in Venezuela and Cuba who has been taking advantage of cheap fuel.
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Radar1992
Champion Author Virginia

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Message Posted: Mar 5, 2013 7:54:44 PM

Its all America's fault....we gave him cancer according to Venezuelan officials....

So we have used the cancer pills....
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lonewolf_947
Champion Author New Hampshire

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Message Posted: Mar 5, 2013 7:53:56 PM

We'll see what happens next.........
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fencemanNY
Veteran Author New York

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Message Posted: Mar 5, 2013 7:50:39 PM

Maybe a new view from Venezuela will flood the world with oil driving the prices down and the speculators over the cliff.
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USMCturtlehead
Champion Author Lexington

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Message Posted: Mar 5, 2013 7:45:12 PM

Chavez death is no loss to Venezuella. Will have no bearing on oil.
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app063
Sophomore Author Maryland

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Message Posted: Mar 5, 2013 7:15:55 PM

Him leaving this earth is a good thing. The puppets he leaves behind I wish he could take with him.
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Discovery02
Champion Author Colorado Springs

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Message Posted: Mar 5, 2013 6:37:31 PM

More uncertainty in the world will cause the price of gas to rise. Keep an eye on it.
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Alaydown
Champion Author Los Angeles

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Message Posted: Mar 5, 2013 6:37:25 PM

Chavez was Obama's biggest fan. His VP is the likely successor, so there probably won't be any change in anti-USA policy there. Chavez had oil companies paying him extremely high fees to do business there. Chavez wanted to end his exports to the US this year, so I wonder if his successor will want the same.

[Edited by: Alaydown at 3/5/2013 6:38:26 PM EST]
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LanguageMan1
Champion Author Tampa

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Message Posted: Mar 5, 2013 6:25:30 PM

He's dead? Well, I won't cry.
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