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Author	Topic: Chavez death brings uncertainty to OPEC member Venezuela	Post a Reply Back to Topics

DoctorV Champion Author Detroit Posts:1,072 Points:204,610 Joined:Aug 2008	Message Posted: Mar 5, 2013 6:21:46 PM Ignore DoctorV Report Abuse 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 Visit Platts for full article

DoctorV

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Detroit

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

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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
Visit Platts for full article

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DoctorV Champion Author Detroit Posts:1,072 Points:204,610 Joined:Aug 2008	Message Posted: Mar 7, 2013 11:46:04 AM Ignore DoctorV Report Abuse 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.
DrCashFlow Champion Author Massachusetts Posts:7,075 Points:1,629,095 Joined:Jun 2008	Message Posted: Mar 7, 2013 3:47:52 AM Ignore DrCashFlow Report Abuse steadily declining production
NedW Champion Author Indianapolis Posts:5,625 Points:1,144,345 Joined:Mar 2008	Message Posted: Mar 7, 2013 1:32:37 AM Ignore NedW Report Abuse Good riddance, Chavez.
doctorindyj Champion Author Santa Fe Posts:3,463 Points:841,760 Joined:Nov 2009	Message Posted: Mar 6, 2013 5:38:26 PM Ignore doctorindyj Report Abuse 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]
DanMtz Champion Author Oakland Posts:3,365 Points:1,245,375 Joined:Oct 2009	Message Posted: Mar 6, 2013 1:48:21 PM Ignore DanMtz Report Abuse Can Venezuela dredge up a bigger clown to run their country?
oilfreak All-Star Author Houston Posts:687 Points:36,885 Joined:Oct 2012	Message Posted: Mar 6, 2013 11:59:34 AM Ignore oilfreak Report Abuse Let's see what's in store for Venezuela and the world after the death of Chavez.
drpepperTX Champion Author Texas Posts:8,955 Points:754,160 Joined:Apr 2011	Message Posted: Mar 6, 2013 10:21:11 AM Ignore drpepperTX Report Abuse Yep, we'll have to wait and see.
streetdesign All-Star Author Illinois Posts:551 Points:577,695 Joined:May 2011	Message Posted: Mar 6, 2013 8:32:58 AM Ignore streetdesign Report Abuse 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.
Radar1992 Champion Author Florida Posts:1,335 Points:312,115 Joined:Dec 2011	Message Posted: Mar 6, 2013 6:47:37 AM Ignore Radar1992 Report Abuse We are relying less and less on their oil.....they have reserves but no production.... Little or no impact...
FocusST2 Champion Author North Carolina Posts:8,153 Points:1,380,875 Joined:Jul 2009	Message Posted: Mar 6, 2013 6:25:11 AM Ignore FocusST2 Report Abuse Watching to see what will come of Venezuela and it's oil.
dandvicb Champion Author Bridgeport Posts:1,237 Points:1,078,680 Joined:Jul 2004	Message Posted: Mar 6, 2013 6:08:33 AM Ignore dandvicb Report Abuse who takes over, gas just will keep going up!
NedW Champion Author Indianapolis Posts:5,625 Points:1,144,345 Joined:Mar 2008	Message Posted: Mar 6, 2013 3:30:03 AM Ignore NedW Report Abuse Why do I see another Obama buddy taking his place?
JohnofGB Champion Author Flint Posts:5,431 Points:1,098,145 Joined:Feb 2010	Message Posted: Mar 6, 2013 12:41:22 AM Ignore JohnofGB Report Abuse That was one person that I will not miss. Lets see if their VP can con the populace like Chavez did.
MN1 Champion Author Twin Cities Posts:3,374 Points:653,515 Joined:Jun 2011	Message Posted: Mar 6, 2013 12:33:44 AM Ignore MN1 Report Abuse Could be interesting.
Previvor Veteran Author Virginia Posts:372 Points:79,865 Joined:Jan 2013	Message Posted: Mar 6, 2013 12:07:29 AM Ignore Previvor Report Abuse Im curious to see how this will affect our prices in the US?
esq262 Champion Author Asheville Posts:2,912 Points:650,440 Joined:Jul 2011	Message Posted: Mar 5, 2013 10:04:45 PM Ignore esq262 Report Abuse No tears here.
TomT2Lee Champion Author Cincinnati Posts:5,362 Points:1,599,705 Joined:Sep 2005	Message Posted: Mar 5, 2013 9:38:40 PM Ignore TomT2Lee Report Abuse One grain of sand on a vast beach of professional con artists in power.
doeslayersr Champion Author Illinois Posts:9,127 Points:873,955 Joined:Dec 2010	Message Posted: Mar 5, 2013 9:19:51 PM Ignore doeslayersr Report Abuse One socialist at room temperature.... so many more to go.
nsdp Champion Author San Antonio Posts:1,117 Points:47,340 Joined:Jun 2012	Message Posted: Mar 5, 2013 9:12:38 PM Ignore nsdp Report Abuse No Dan he will be attending your funeral in celebration of another successful drone attack. It is on its way to Denver now.
danindenver Champion Author Denver Posts:5,500 Points:1,240,730 Joined:May 2005	Message Posted: Mar 5, 2013 8:31:18 PM Ignore danindenver Report Abuse Will Obama be attending the funeral out of respect for his "good friend"?
Cothrom Champion Author South Carolina Posts:1,765 Points:727,510 Joined:Sep 2005	Message Posted: Mar 5, 2013 8:13:23 PM Ignore Cothrom Report Abuse This current event may have an effect on our prices
slicerette Champion Author South Bend Posts:3,534 Points:542,180 Joined:Jan 2011	Message Posted: Mar 5, 2013 8:06:05 PM Ignore slicerette Report Abuse 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.
LetemEatCake Champion Author Oklahoma City Posts:5,615 Points:1,207,430 Joined:Mar 2008	Message Posted: Mar 5, 2013 8:05:58 PM Ignore LetemEatCake Report Abuse This is going to be interesting to watch in Venezuela and Cuba who has been taking advantage of cheap fuel.
Radar1992 Champion Author Florida Posts:1,335 Points:312,115 Joined:Dec 2011	Message Posted: Mar 5, 2013 7:54:44 PM Ignore Radar1992 Report Abuse Its all America's fault....we gave him cancer according to Venezuelan officials.... So we have used the cancer pills....
lonewolf_947 Champion Author New Hampshire Posts:1,287 Points:578,560 Joined:Mar 2011	Message Posted: Mar 5, 2013 7:53:56 PM Ignore lonewolf_947 Report Abuse We'll see what happens next.........
fencemanNY Veteran Author New York Posts:417 Points:358,345 Joined:Jul 2008	Message Posted: Mar 5, 2013 7:50:39 PM Ignore fencemanNY Report Abuse Maybe a new view from Venezuela will flood the world with oil driving the prices down and the speculators over the cliff.
USMCturtlehead Champion Author Lexington Posts:2,035 Points:105,650 Joined:Feb 2013	Message Posted: Mar 5, 2013 7:45:12 PM Ignore USMCturtlehead Report Abuse Chavez death is no loss to Venezuella. Will have no bearing on oil.
app063 Sophomore Author Maryland Posts:170 Points:155,080 Joined:May 2011	Message Posted: Mar 5, 2013 7:15:55 PM Ignore app063 Report Abuse Him leaving this earth is a good thing. The puppets he leaves behind I wish he could take with him.
Discovery02 Champion Author Colorado Springs Posts:2,580 Points:312,615 Joined:May 2012	Message Posted: Mar 5, 2013 6:37:31 PM Ignore Discovery02 Report Abuse More uncertainty in the world will cause the price of gas to rise. Keep an eye on it.
Alaydown Champion Author Los Angeles Posts:5,126 Points:824,595 Joined:May 2007	Message Posted: Mar 5, 2013 6:37:25 PM Ignore Alaydown Report Abuse 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]
LanguageMan1 Champion Author Tampa Posts:11,733 Points:1,663,740 Joined:Apr 2008	Message Posted: Mar 5, 2013 6:25:30 PM Ignore LanguageMan1 Report Abuse He's dead? Well, I won't cry.