A worker walks past a mural with a PDVSA logo at its gas station in Caracas August 29, 2014. REUTERS/Carlos Garcia Rawlins
Foreign Policy: Venezuela Is So Broke It Can’t Even Export Oil
Fleet of rundown Venezuelan oil tankers carrying some 4 million barrels of oil and other fuels is wallowing in the Caribbean Sea. Not because of bad weather, or mechanical problems, but because Venezuela’s state-owned oil company, Petróleos de Venezuela SA, doesn’t have the cash to get them to their final destinations.
Beyond the obvious environmental risks, it’s doubly bad news for Venezuela, a country in dire economic straits and full-fledged crisis, with a political impasse, looting, dangerous food and health supply shortages, and massive protests. Venezuela is massively reliant on oil exports to bankroll government services. But the cash-strapped country can’t even find the money to service the vessels that carry its exports. And Venezuela needs the exports to get the cash to service the vessels. It’s a vicious circle.
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Update #1: Exclusive: Millions of barrels of Venezuelan oil stuck at sea in dirty tankers (Reuters)
Update #2: Venezuela’s PDVSA Can’t Afford To Clean Tankers, Pay Shipping Bills (Oil Price)
WNU Editor: This has been a recurring problem .... Oil tankers in limbo as Venezuela's PDVSA fails to pay BP - sources (Reuters). I have a distant relative who works in the oil industry in Alberta. He follows the oil situation in Venezuela very closely, and has been there in the past. I will never forget what he told me last year .... "Venezuela's oil infrastructure has broken down to the point where it will cease to be a player in the oil industry in about 3 - 5 years". But if the above Foreign Policy article is accurate .... it looks like my relative is wrong .... it is breaking down now.
3 comments:
The state owns the means of production.
Another communist/socialist state has failed.
This is your country on socialism. Any questions?
Venezuela is basically a communist state. A few mom and pop stores does not compete with the state oil industry in terms of GDP (or lack of it).
Now Maduro should proceed to the next state of communism/socialism and collectivize the farms. That is he should collectivize the agriculture sector.
Maybe Maduro should be a good communist and kill a few million peasant farmers. He could signal his virtue to people like Danny Glover and other Democrats.
Maybe Jay could save them??
Trdeau said Castro was a good guy... maybe Canada can kick in a few bucks since our PM seems to like the Socialist lifestyle. Better yet, Bernie Sanders and his ilk should also support this comrade.
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