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Page added on May 20, 2017
Venezuela To Import Gasoline As Crisis Escalates
For over forty days, hundreds of thousands of Venezuelans have taken over the main streets and roads of the country to protest against the dictatorial Venezuelan regime. Since the protests started, forty-two people have been killed, 2,371 arrested and thousands injured across the country.
Falling oil revenues due to low international oil prices, as well as the institutionalized government corruption, caused yet more protests, with the government once again using tear gas, water cannons and pepper spray alongside its paramilitary force – the “colectivos” (the heavily armed civilian branch of the “revolution”).
Venezuela’s economic, humanitarian and political crisis hit critical levels at the end of March, when Venezuela’s president and the Supreme Court of Justice initiated a process that would deprive the opposition-led National Assembly of its legislative powers. It is worth noting that the present Supreme Court of Justice was deviously designated by the previous National Assembly just days before they finished their period, a move designed to make it completely obedient to the Venezuelan president. Two days later, in response to the outcry of the international community, in particular from the Organization of American States (OAS), the Supreme Court tried to step back from its controversial dictatorial decision through a presidential mandate.
On May 1st, President Nicolas Maduro announced on national television that he would call an assembly to rewrite the country’s Hugo Chavéz Constitution. It was the solution that the government found to pacify the protest against him, but the opposition rejected this solution as an attempt to avoid new presidential elections.
Venezuelans are living day-by-day in a total chaos, facing a very complicated situation with rising crime and corruption rates, daily electric blackouts and shortages of both medicines and food (more than 80 percent). Venezuelans cannot get even the most basic lifesaving medical supplies such as common antibiotics. This critical situation does not seem to have an easy solution, due to the fact that most of the goods have to be imported due to Venezuela’s record low industrial output levels.
In its last report from May 11th 2017, OPEC reflected a steep fall in Venezuelan crude production. The cartel mentioned a decline of around 0.45 million barrels a day since 2015, putting the Venezuela production at 2.194 million barrels a day. Over the last 17 years, Venezuela’s oil production has decreased 1.135 million barrels per day representing a 34 percent reduction.
Venezuela is suffering gasoline shortages despite having the world’s largest oil reserves; Venezuelan refineries are operating significantly below capacity because they are facing operational problems due to a lack of investments and maintenance. Falling output at refineries means that Venezuela needs to import more gasoline, squeezing the national budget even further. Refineries are currently working at less than 30 percent of average 2016 levels. State-run oil company PDVSA is importing between 100 and 150 thousand barrels per day of gasoline. Several tankers are waiting off the coast of Venezuela to discharge cargoes as the PDVSA has difficulties to pay their ship bills, resulting in a penalty of $26 000 per tanker per day.
Nine out of ten Venezuelans think that the actual situation is president Maduro’s fault and the call for early presidential elections grows louder and louder. Venezuelans know this is the only way to save the country from the socialist dictatorship but they are conscious that it will not be easy in a country which is governed by Castro-Cubans, the military, “Narcos” and a small group of Chavéz devotees, according to Moisés Naím, a former Venezuelan minister of trade and Central Bank governor.
Today, Venezuela’s democratic masquerade has crumbled, showing the real face of a dictatorship. Venezuelans are famished and the only way they have to pressure the government is to take the streets and request presidential elections, as they have been doing for quite some time. While the Venezuelan regime is experiencing its lowest ever approval rating, the government has maintained its military branches in every key post in the Venezuelan administration, making a democratic solution unlikely.
By Luis Colasante for Oilprice.com
9 Comments on "Venezuela To Import Gasoline As Crisis Escalates"
Go Speed Racer on Sun, 21st May 2017 12:45 am
Yeee hawwww! Here comes the end of the world.
Riots, food shortages, car fires and gasoline rations.
I am warming up the popcorn popper, and I put new
batteries into the TV remote.
Davy on Sun, 21st May 2017 5:45 am
“Nine out of ten Venezuelans think that the actual situation is president Maduro’s fault and the call for early presidential elections grows louder”
Too bad, once a nation gets to the point Venezuela is at there is not much a different political party can do at least in the short term. What is needed is a combination of many things and even that is only to get to stability. If stability can be achieved then their oil industry cash cow can be revitalized. This means international assistance. They need the evil IMF to give them some loans. Sounds like more steps down the path of a nation that will loses its dignity like a Greece.
The important point here is we are all heading to a loss of dignity together. Those who lead the pack may actually be better placed when the SHTF and globalism decays. I say “may” because we really don’t know the when and how of it all. Honest science is pointing to it and real economic analysis shows global decay. Decline is uncertain so their efforts should be towards basic stability which will be the basis for a good global all “inclusive” decline. It will be those areas that maintain stability and cohesiveness the longest that will be the best place for an uncertain decline. Venezuelans now have a taste of it so in a way we can say they have been “touched” using a Native American idea of tasting pain and loss.
Cloggie on Sun, 21st May 2017 7:32 am
President Nicolas Maduro… hmmm in Holland we have a miniature town called Madurodam, containing models of Dutch architectural landmarks:
https://www.youtube.com/watch?v=D9lojDRcvpQ
…an enterprise by the sefardic Maduro family.
http://www.timesofisrael.com/venezuelas-anti-semitic-leader-admits-jewish-ancestry/
No wonder he wants better relations with the US as compared to Chavez:
http://www.reuters.com/article/us-venezuela-usa-idUSKBN13F15B
http://www.nationalreview.com/article/437812/enezuela-nicolas-maduro-obama-administration-work-hand-hand
bobinget on Sun, 21st May 2017 10:54 am
There are two varieties of plantains; Green or ‘verde’
The other, for over-ripe plantains:
https://icuban.com/food/platanos_maduros.html
Venezuela’s refineries are Running out of Oil.
Many flights, Venezuelan Airlines, have stranded passengers for up to five days waiting for cash to buy fuel.Many flights have simply canceled.
One would think disappearing Venezuelan crude would have an impact on price. Well, it has.
Watch for China and Russia to move on Venezuelan assets, including CITGO and inoperative refineries.
Once ownership devolves to Russia, there will be no further reason to export crude to the US.
Obvious push/pull remains, China wants to keep prices lower thereby starving out resistance. Russia, OTOH Needs higher prices desperately. Knocking off Venezuelan exports at this time suits Russia fine.
The real push/pull will come next year as production,
exports begin to come back.
Breaking:
A second aircraft carrier moved into North Korea’s zone of possible conflict. NK launched yet another mid-range missile yesterday.
With such a full plate Venezuela will be ignored, for now.
bobinget on Sun, 21st May 2017 11:06 am
Saying one is also ‘anti Semitic’ because they oppose Israeli policy has been a handy tool for
genuine anti and pro Semites for decades.
Both ‘sides’ embrace such hate rhetoric.
Carried to extreme absurdity. Opposing D. Trump makes a person anti-American. Or, opposing any of a past century of foreign wars, for that matter.
bobinget on Sun, 21st May 2017 12:59 pm
Buying gasoline for any oil producing nation is not new. https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WGTIMUS2&f=W
Mexico has been a negative oil importer for years.
Today, Mexico is one of North America’s biggest NG importers.
https://www.eia.gov/todayinenergy/detail.php?id=28932
It’s often all about location.
Venezuela is currently OPEC’s basket case.
bobinget on Mon, 22nd May 2017 2:57 pm
Ya just know when officials type in all caps they are losing it. Looks like Venezuelan oil may stop flowing sooner than later.
Eulogio Del Pino
@officials
Late tweet;
More
Los TERRORISTAS siguen sus ataques a PDVSA, este lunes han perpetrado daños a las instalaciones de La Tahona, esto es FASCISMO PURO!!
Translated from Spanish by BingWrong translation?
The terrorists continue their attacks on PDVSA, on Monday have been perpetrated damage to the facilities of La Tahona, this is pure fascism!
peakyeast on Tue, 23rd May 2017 3:41 am
A former IMF director concluded that 100% of all financial troubles the IMF had helped with (during his reign) was caused by the local mafia draining too much of the countrys wealth and that the loan terms always were: Reduce your parasitic behavior…
Richard on Tue, 23rd May 2017 7:51 am
It was never going to end well, I knew that Chavez guy had something a bit sinister in the way he governed, and now his successor has used the setup that was put in place.
Maduro must change policy or simply resign.