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Venezuela’s Oil-Based Economic Woes

In today’s “QuickTake,” Bloomberg’s Vonnie Quinn takes a look at economic and political issues in Venezuela. She speaks on “Bloomberg Markets.” (Source: Bloomberg)

28 Comments on "Venezuela’s Oil-Based Economic Woes"

  1. dave thompson on Thu, 6th Apr 2017 12:14 am 

    More oil tan Saudi Arabia is always the BS put out by MSN. Never a mention of how much is producible and at what cost.

  2. Kenz300 on Thu, 6th Apr 2017 7:56 am 

    It is never good to have all your eggs in one basket.

    Diversify, diversify, diversify.

  3. GregT on Thu, 6th Apr 2017 12:22 pm 

    “Ten years from now, twenty years from now, you will see, oil will bring us ruin… It is the devil’s excrement.”

    Juan Pablo Pérez Alfonzo – a prominent Venezuelan diplomat, politician and lawyer primarily responsible for the inception and creation of OPEC.érez_Alfonzo

  4. Plantagenet on Thu, 6th Apr 2017 12:43 pm 

    Oil can bring great wealth if properly managed. Unfortunately for Venezuela they are being governed by a cabal of incompetent socialists.


  5. dave thompson on Thu, 6th Apr 2017 12:47 pm 

    ” Unfortunately for Venezuela they are being governed by a cabal of incompetent socialists.” This is exactly what the MSM and the corporate overlords want you to believe Planty.

  6. Davy on Thu, 6th Apr 2017 1:26 pm 

    Dave, so you are saying the current government is competent and someone else is to blame? Sounds like more victimization politics.

  7. John on Thu, 6th Apr 2017 1:36 pm 

    Seems to me the low price for poor quality oil is the primary problem.

  8. GregT on Thu, 6th Apr 2017 1:50 pm 

    US-Led Economic War, Not Socialism, Is Tearing Venezuela Apart

    Americans have been trained by decades of Cold War propaganda to look for any confirmation that ‘socialism means poverty.’ But in the case of Venezuela and other states not governed by the free market, this cliche simply doesn’t ring true.

    Tracking US Intervention in Venezuela Since 2002

    It’s been over a decade since a U.S. sponsored coup temporarily overthrew Venezuela’s democracy, and Washington is still plotting.

    Venezuela in Crisis: Too Much US intervention, Too Little Socialism

    US involvement in world politics: Venezuela and Afghanistan.

    Unsurprisingly the US government denies any undercover, underhand attempts to influence Venezuelan politics. President Chavez is convinced that the US government is trying to orchestrate his downfall and although he claims he has evidence nothing has been produced as yet. The lack of concrete evidence of any dubious US involvement in Venezuela should not, however, be viewed as proof of the US’s innocence. The US government has a track record of interfering in the politics of various other South/Latin American countries. Tellingly, in many of the cases that I will now highlight not only did the US censor and manipulate the media coverage of events to hide the real truth, but also, they often denied any wrongdoing and distorted the facts of what actually occurred.,d.cGw

  9. BobInget on Thu, 6th Apr 2017 1:55 pm 

    Lucky for China and Russia, DJT is leading our foreign policy decisions. With N.Korea, Syria, Yemen, Iraq, Afghanistan, Iran, Saudi Arabia, hot potatoes, who do we invade or at least “bomb the shit out-of?” (next)

    Of that long list of problems President Trump’s son-in-law needs to deal with, ONLY Venezuela really matters. (yes, I know, it’s not on any lists).

    The US should intervene in Venezuela, economically.
    No drones, no troops, not even a couple of carrier groups. Instead we should (but won’t) send a dozen
    container ships loaded with US (made/grown) consumer goods, including spare parts and a few billion USD’s.

    One very real reason we invaded Iraq, besides the phony (WoMD) was to assure we could control Iraq’s oil. Never mind, all that spilled blood and treasure was for naught. We went in for oil.

    Here’s Venezuela two day’s tanker sail, with more oil then Saudi Arabia or Canada, we’ve handed over to China and Russia by default.. (pun intended)

    I promise you. In future, this will be the biggest scandal to beset our right wing government beset with a defunded State Dept., Dept. of Energy, led by oil hacks.

  10. Davy on Thu, 6th Apr 2017 2:27 pm 

    Chavez succeeded in nutralizing American influence in Venezuela. The US has been a factor and is almost certainly an influence now in the destabilization of Venezuela but without effectiveness. Chavismo is the real reason Venezuela is a mess. He achieved complete power and was corrupted by it. He gave away Venezuela’s riches for a political notion. He nationalized what stood in his way. He gave to his loyal followers and took from his enemies. The current leadership’ s incompetence is just a symptom of a Chavez legacy of corruption and porkbarrel politics.

  11. Boat on Thu, 6th Apr 2017 4:39 pm 


    Your right. That heavy oil needs a much higher price to survive, good or bad politics.

  12. shortonoil on Thu, 6th Apr 2017 4:47 pm 

    “Seems to me the low price for poor quality oil is the primary problem.”

    According to the EIA in 2016 it took US refineries 1.63 barrels of crude to produce one barrel of finished product. That is up from 1.08 barrels of crude in 2005. If the Venezuelan’s gave their junk away for free it probably wouldn’t be worth bothering with! 85% of the cost of operating a refinery is the cost of the crude.

  13. dave thompson on Thu, 6th Apr 2017 10:32 pm 

    Great talking points.

  14. GregT on Fri, 7th Apr 2017 2:07 am 

    Boat said:

    “John, Your right.”

    Apparently you should ignore your left, your front, your back, your above, and your below John. According to our resident idiot, your right is what you should be focussed on.

    “That heavy oil needs a much higher price to survive”

    Strange, how it survived on prices half of what they are today, for the better part of a century, in 2017 inflation adjusted dollars.

    Step up to the plate Kevin, and explain why that would be the case, or STFU already.

  15. Anonymouse on Fri, 7th Apr 2017 3:34 am 

    Actually exceptionalist sounds like its more a case of your own lazy rationalizations and your own incompetence that is the problem. Venezuela has done no harm to ‘amerika’. The only ones that seem to worked up into a lather over that country seem to work for the uS snake dept, the Jew York Times, or the pentagram. They literally, cannot leave those folks in peace.

    Oh, and itinerant sheep….farmers from missasouri or w/e you call that swamp you live in. Venezuela seems to really annoy that elite demographic as well, for reasons unknown, despite the fact none of them could find the place on a map, much less ever actually visit there.

  16. James boage on Fri, 7th Apr 2017 5:35 am 

    Shorty nails it again . That’s some scary stats

  17. Davy on Fri, 7th Apr 2017 6:09 am 

    Anymouse, it is goats and cattle and I operate a permaculture grazing system. There is a science to it and it has a motive of moving away from industrial agriculture and towards a natural cycle. I actually do something that is productive. I am also running a doomstead that is attempting to become more self-sustaining. You know garden, orchard, grapes, and bees. Have you ever grown anything dumbass? I practice relative sacrifice and I am downsizing in place for the unfolding of the collapse process.

    You do nothing but lay around mom’s basement and play the Xbox and when bored and feeling hateful you come on here with the other extremist to trade hate. I have been to more places on the map then you can probably know things about. I actually have traveled this planet and lived in other cultures. I did this back when you were just a twitch in your mom’s pussy. Globalism and spreading sustainable development was then something I believed in. I learn to speak German and Spanish. I now understand Italian. You are a joke anymouse with a one track mind. You are just another hate filled intellectually lazy extremist that infect this site.

  18. shortonoil on Fri, 7th Apr 2017 1:40 pm 

    “Shorty nails it again . That’s some scary stats”

    US refineries are already paying more for the oil that they use than what they are getting for gasoline; $1.96/ gallon vs $1.63. If refinery yields continue to decline, as they have over the past 12 years, by 2026 it will require production of 195 mb/d to produce the same quantity of finished product used today. At 3.35 barrels of crude for one barrel of finished product producers like Venezuela are toast.

  19. Hello on Fri, 7th Apr 2017 1:48 pm 

    shorty you’re priceless. You have been shown wrong on so many accounts, yet plow ahead with your nonsense no matter what.

    Are you a useles politician? Or just plain dumb?

  20. Boat on Fri, 7th Apr 2017 3:10 pm 


    Fracked oil, tar sands oil survived like you explained but production took off when prices took off. Foreign money in Canada was the big fad. Now tar sands is just hanging on trying to survive. Foreign countries are dropping Canada like an apple filled with worms. Poor clueless greggiet, just can’t Google and read.

  21. GregT on Fri, 7th Apr 2017 3:41 pm 

    The topic of conversation was Venezuela Boat. Try to keep up.

    Crude Oil Production in Venezuela decreased to 2250 BBL/D/1K in January from 2270 BBL/D/1K in December of 2016. Crude Oil Production in Venezuela averaged 2425.99 BBL/D/1K from 1973 until 2017, reaching an all time high of 3453 BBL/D/1K in December of 1997 and a record low of 594 BBL/D/1K in January of 2003.

  22. GregT on Fri, 7th Apr 2017 3:52 pm 

    “Fracked oil, tar sands oil survived like you explained but production took off when prices took off.”

    Exactly the point that myself and others have been trying to get through to your thick skull for over a year now. Take all of that unprofitable oily stuff off of the markets, and there is no oil glut. Peak, cheap, affordable oil, is already in the rearview mirror.

  23. Boat on Fri, 7th Apr 2017 4:01 pm 


    If US oilmen had full control of those fields the last 20 years I would say oil would not be a problem in Venezuela. How is that for knowing history.

  24. shortonoil on Fri, 7th Apr 2017 7:23 pm 

    “Or just plain dumb?”

    $51/barrel oil at a 61% yield (EIA statistics) is $83.60 for the the crude used to produce 1 barrel of finished product. $83.60 is (42 gallons per barrel for the worthless troll above)$1.93 per gallon. NYH RBOB gasoline was $1.63 a couple of days ago, it’s $1.72 today. Refineries are paying more for the crude that they buy than they are getting for the finished gasoline.

    Just because you wipe your butt with TP with pictures of an EXXON check on it, doesn’t mean that everybody is going to buy your stupid BS. Refineries will start going out of business until the retail price goes up enough to match their raw material cost. It is the kind of thing brought on by depletion, and is to be expected as the oil age comes to its conclusion. In a few years gasoline will no longer be an everyday commodity, it will become a luxury used by the very rich. It is industry pimping morons like you that are going to get us blindsided.

  25. Boat on Fri, 7th Apr 2017 7:51 pm 


    The Eia states a refinery gets 45 gal from a 42 gal barrel of oil because of processing gains. Now show me the Eia crack spreads showing loss and the numbers that show a loss for refining crude.

  26. Boat on Fri, 7th Apr 2017 8:03 pm 


    How much of the cheaper oil has been off the market because of geopolitical conflicts. Prices may have never went up and oil sands/modern fracking never happened. That is what I have been saying for years. Think Iraq, Iran, Lybia, Nigeria, Venz, Brazil, Mexico. Every country screwed up oil production by conflict or politics.

  27. marmico on Sat, 8th Apr 2017 4:27 am 

    In a few years gasoline will no longer be an everyday commodity, it will become a luxury used by the very rich.

    What a retard. The emptiness of your cranial cavity defies belief. What happened to the ETP thermodynamic birdie blowing tweets up your ass?

    There are 267 days left in 2017. You better start saving $4.68 per day starting today to pay up your $1250 bet with kublikhan.

  28. Midnight Oil on Sat, 8th Apr 2017 11:58 am 

    Marmico…that comes out of petty cash amusement mad money kitty. Benson, Bernie, Buster and Bongo are not in such dire straits as the likes of you.
    How about anteing up, or are your balls clipped?

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