Oil-rich Venezuela paying billions for oil

[lovuian]

http://feeds.bignewsnetwork.com/?sid=24153a5df7b94918

Venezuela, the world's fifth-largest crude oil exporter, has begun buying crude oil from other exporters.

That's because of two trends: Its own declining output and its growing commitment to provide cheap oil to politically supportive allies in Latin America and the Caribbean, MosNews said Tuesday.

Since Hugo Chavez became president of Venezuela the nation's oil output has dropped by 60 percent, even as Chavez has offered discounts on his country's crude oil to Bolivia, Cuba and towns in Nicaragua that have left-wing mayors, among others
more...
??? So how much oil does Chavez have???

[madrchsod]

1. where in the hell did you get this bullshit from?

chavez is buying russian oil to fulfill light oil contracts venezuela can`t deliver because of refining problems. the country is sitting on close to the same amount of oil as the saudi`s but it is heavy,sulfured crude that requires extra refining which at this time the country is critically short of and also problems in the us refinery's due to the hurricanes.
venezuela has lots of oil

[Up2Late]

60. You are right, this is BS! Why? Because it 3rd hand dis-info from UPI

Wednesday 3rd May, 2006

Oil-rich Venezuela paying billions for oil
Big News Network.com Tuesday 2nd May, 2006 (UPI) :hi:

Venezuela, the world's fifth-largest crude oil exporter, has begun...
<http://feeds.bignewsnetwork.com/?sid=24153a5df7b94918>

"Big News Network" who got this story from UPINewstrack <http://www.upi.com/NewsTrack/view.php?StoryID=20060502-080448-4000r> which is a VERY distorted, RW Propaganda, edited version of an APRIL 28, 2006 MosNews article

<http://mosnews.com/money/2006/04/28/venezuelaoil.shtml>

Venezuela Signs $2Bln Oil Deal with Russia to Avoid Default on its Contracts

Created: 28.04.2006 11:59 MSK (GMT +3), Updated: 15:55 MSK

MosNews

Venezuela, the world’s fifth-largest oil exporter, has struck a $2 billion deal to buy about 100,000 barrels a day of crude oil from Russia until the end of the year, the British Financial Times reported on Friday, April 28....

which it's self is a report on a Financial Times article

<https://registration.ft.com/registration/barrier?referer=&location=http%3A//news.ft.com/cms/s/1d5dfe3a-d653-11da-8b3a-0000779e2340.html>

Venezuela buys Russian oil to avoid defaulting on deals
By Andy Webb-Vidal in Caracas
Published: April 28 2006 03:00 | Last updated: April 28 2006 03:00

Venezuela, the world's fifth-largest oil exporter, has struck a $2bn deal to buy about 100,000 barrels a day of crude oil from Russia until the end of the year.

Venezuela has been forced to turn to an outside source to avoid defaulting on contracts with "clients" and "third parties" as it faces a shortfall in production, according to a person familiar with the deal. Venezuela could incur penalties if it fails to meet its supply contracts....

I really wish the mods would just move this sort of edited crap from Big News Network, who almost always get their news second hand from UPI Newstrack (or News Corp), which is it's self second-hand and almost always a very distorted (and always edited) version of the original article.

UPINewsTrack is one of the worst and most prolific sources for dis-info and distorted news on the web today. They edit out all the important facts and big words, and then re-label it as UPI, which some still don't know is completely dis-reputable now, perfect for the hundreds of rabid RW "news" sites and the poorly edited LW sites.

This sort of thing should be illegal, but who you gonna call, the U.S. Justice Department?!? Orwell would be proud. :argh:

To truly appreciate how distorted the Newstrack story ended up, read the MosNews article, which is it's source: <http://mosnews.com/money/2006/04/28/venezuelaoil.shtml>

[Selatius]

2. Well, if true, let's hope it's corrected.

The oil revenue is needed to support social programs for the poor.

[Flanker]

3. It is more or less confusing since it is a bit technical

But there is a lot of disinformation out there, here is a good entry that should clear it up.

http://oilwars.blogspot.com/2006/04/venezuelan-oil-numbers-confirmed.html

[RoyGBiv]

5. I recommend this highly ...

You have to pay attention to it -- no sound bites here -- but this gives a good summary of the goings-on. Thanks for posting that link.

[frankenforpres]

6. good link nt

[redqueen]

10. Thanks!

corporate mike started a thread with a different link that was also about Venezuela's dropping oil production, that thread could use this link...

[Commie Pinko Dirtbag]

17. It WAS used in that thread. Didn't stop him. -nt

[redqueen]

29. hahahaha...

having a busy afternoon here... rasserfrassin billing time... thanks for sparing me the trouble, and the effort rolling my eyes.

:rofl:

[SoCalDem]

57. "Mike" as in MICROPHONE??

that usage is normally spelled "mic"..hmmmm

[corporate_mike]

13. what? that's a biased, pro-Chavez blog

[Commie Pinko Dirtbag]

16. As opposed to an anonymous, anti-Chavez DU poster, which is

WAAAAY more reliable. Yeah, right.

[redqueen]

30. *snort*

:loveya: :loveya: :loveya: :loveya:

[stepnw1f]

35. Hahahahahahaa....

At least he/she is tenacious...

[AllieB]

50. Tenacious in their quest to form ill-informed opinions based on RW sources

[leftchick]

59. way more

:rofl:

[Robbien]

4. First we get the word that BushCo is spending money to destabilize

unfriendly governments.

Then an unsourced report comes out that Venezuela has oil troubles.

Well, Venezuela is still paying down its debt; is still selling gas to its citizens at bargain prices; and still has the upper hand with the oil majors when negotiating oil deals.

Perhaps I've been listening to Faux News too much lately, but this feels like paid propaganda.

[paul_fromatlanta]

7. Seperate from total production - some oil producers buy differernt grades

than they themselves produce. Not unlike the way the Saudis buy soime types of sand.

[cliss]

8. OK: I have some comments.

Thanks, by the way for providing this link.

Point #1: I'm not sure Venezuela's production has dropped by 60%. Venezuela ships a large portion of its oil to the U.S. The US desperately needs Venezuelan oil, maybe even more so than Middle East oil because it's closer. If the supply had dropped by 60%, we would have heard about it by now.

Now Chavez kicked OUT some oil refineries at the end of the year. But that shouldn't affect oil production. Some of them agreed to be nationalized. There was also a recent article which says that Venezuela has in fact the world's #1 supply of oil. But - it's thick tar.

Point #2: "Chavez is buying oil from Russia for $2 billion dollars". Not according to a recent article in the LBN. I believe it said $1 billion.

[goforit]

9. Hmmm......Disinformation about oil? Could be.

This information could be a way of pulling the plug of Chavez's soaring power.

Coupled with the huge find of Louisiana, which could be more disinformation, the Saudis will come out as the winners once again.

Propaganda, who's gonna prove them wrong.
The bluffing game,
Will it work.

[corporate_mike]

11. Chavez is cutting production to drive up oil prices

[Commie Pinko Dirtbag]

12. Go read #3

And follow through all the links in the linked article. They are rather enlightening.

[corporate_mike]

14. I don't need to read what a biased, pro-Chavez blogger thinks

to arrive at my conclusion, thanks.

[Commie Pinko Dirtbag]

15. The US SEC is pro-Chavez?

http://www.sec.gov/Archives/edgar/data/906424/000110465905047833/a05-17375_120f.htm

[corporate_mike]

18. that's an old document -- PDVSA stopped filing SEC reports in 2004

[converted_democrat]

22. So, what do you use to arrive at your "conclusion"? Where is your proof?

Where are the links?

[bvar22]

36. This reminds me of John Bolton's response yesterday.

He didn't need to read what Seymore Hersch has written...Already made up his closed mind and nothing was gonna change it.

You have a philosophical friend...John Bolton.
Happy Trails.

The Democratic Party is a BIG TENT, but there is NO ROOM for those
who advance the agenda of THE RICH (Corporate Owners) at the EXPENSE of LABOR and the POOR.

[stepnw1f]

37. That's Because You are Biased

Jesus...:eyes:

[converted_democrat]

19. Where is your link to that information? You can't just throw out crap, and

expect people to them to believe it.. Where is your source?

[corporate_mike]

20. It's in the original post - production is down 60% under Chavez

oops.

[Commie Pinko Dirtbag]

23. That is a biased, anti-Chavez article.

AND it doesn't give ANY source.

[converted_democrat]

24. I asked for a source, this a website I've never heard of, and I get around

Where is the info, and recognized source that backs up these claims?

[corporate_mike]

31. Try this

http://www.rigzone.com/news/article.asp?a_id=31765

[Commie Pinko Dirtbag]

38. "rigzone.com - your gateway to the oil and gas industry."

Interesting. Do you have ties to the oil industry?

[converted_democrat]

39. Your claim- "Chavez is cutting production to drive up oil prices"

Where does it say that?

[Flanker]

58. Did you bother to read what I linked?

sigh



From the International Energy Agency read the bottom line, you have been conned my friend.

[Commie Pinko Dirtbag]

21. If he (or the OP) ever shows one, I suggest we judge its credibility

with similar criteria to what he used in posts #13 and #14.

What's good for the goose is good for the gander.

[rman]

26. That's what the Chavez haters are saying

[corporate_mike]

28. That's what the guy with the Chavez avatar says :)

your bias is too obvious

[rman]

62. Says the guy who bashes Chavez at every occasion

Your bias is not obvious at all.
:sarcasm:

[Media_Lies_Daily]

25. Nope. Not going to buy the info in that article.

[corporate_mike]

27. Last week's Financial Times article says the same thing

http://www.rigzone.com/news/article.asp?a_id=31765

[Media_Lies_Daily]

32. And your point is.....??

[corporate_mike]

33. There must be a reason why Chavez is cutting production

He's either short on oil (I doubt it) or he's trying to raise prices.

[Robbien]

41. Or because, according to your article, Chavez is adroit at oil policy

To be sure, Venezuela's government is increasingly adroit in the financial markets, as Mr. Chavez has reportedly shown interest in using PDVSA and his government in ways similar to hedge funds, by timing markets and moving assets rapidly from one arena to the other.

Thus, this could be a shrewd business move aimed at cutting transportation costs to some of PDVSA's clients.

The rich oil elites thank you for all your hard work in promoting their propaganda.

[converted_democrat]

42. Show me in the article where it says what you claim..

"Chavez is cutting production to drive up oil prices"

Where does it say that?

[Up2Late]

63. I found the problem and posted the reason at the top of the thread, it...

...the bogus news source, or actually, the websites using a bogus source. This report is a 3rd hand, twice re-edited version of a week old story that was originally a good, logical story in the Financial Times. This one came from UPI Newstrack, one of the largest purveyors of bogus news on the web.

I explain it better in my post, or you can see the same post in my DU Journal. It's post #60

[converted_democrat]

43. I read the link, and I didn't see what he claimed..

His claim-
"Chavez is cutting production to drive up oil prices"

I read it, didn't see it..

[Commie Pinko Dirtbag]

44. I guess "some people say" that. -nt

[converted_democrat]

46. It really drives me batty when people lie about Chavez.. I know

the man isn't perfect, but dammit he at least tries to take care of his people.. That's a hell of a lot more than you can say about our "leaders".

[Robbien]

47. The one thing which worries the corporate elite the most is

that the people band together and claim their rights. It is even worse if "the people" have a leader who is willing to carry the torch.

Each one of these corporate elite attacks is a validation that the policies being put into place by Chavez is a threat to corporate elite greed.

[Commie Pinko Dirtbag]

34. Ah. That is a rehashing of this:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=364&topic_id=1057654#1057739

Lots of speculation and little information there.

Now I remember having read that article. Shame it has slipped into the pay-only section of ft.com.

[Judi Lynn]

40. I was wondering if Pacheco, the source named in that article

wasn't one of the fired (by Chavez, after the strike) employees of PDVSA. Found this as an answer:

Electrocuted: Neither Jose Luis Pacheco or Jorge Giordani nor Alvaro Silva Calderon convinced Chavez Frias about the trio's electricity utilities policy. The President brought them face to face with the people from Guayana ... Giordani's arguments collapsed like a pack of cards. The same thing happened to him as in the story of the Margariteno and the live wire. Did you know that the real smoke screener hiding the sector's crisis is Jose Luis Pacheco, who was once dismissed as Deputy Infrastructure Minister?

http://www.vheadline.com/readnews.asp?id=9317

Figures!

[Robbien]

45. Again, thanks JudiLynn for cutting through the smoke & mirrors

Your research abilities are remarkable.

[Judi Lynn]

48. You may remember the oil strike attempted in 2003. Pacheco's name

comes up again in this article from the Washington Post, for whatever it's worth:

Venezuela's Oil Crisis Boils Down to Power
Chavez Takes Steps to Increase His Authority

By Scott Wilson
Washington Post Foreign Service
Friday, January 17, 2003; Page A18


CARACAS, Venezuela, Jan. 16 -- The battle for Venezuela's oil industry has taken center stage in negotiations to end a 46-day-old general strike designed to remove President Hugo Chavez from power, and it promises to have a lasting impact on the state-owned industry that is the country's main source of wealth.

The stakes have increased in recent weeks for the United States as it moves toward a war with Iraq that could affect petroleum shipments from the Middle East. The United States used to get 15 percent of its foreign oil from Venezuela. But the strike has drastically cut exports and contributed to a rise in the price of gasoline at U.S. service stations.

Over the long term, the Venezuelan oil industry could draw more U.S. private investment if it is reformed according to Chavez's apparent plans. Officials and analysts say he would welcome foreign capital as he seeks to strengthen authority over a company that provides nearly half the government's $20 billion budget but has often acted as an independent and even hostile entity since Chavez was elected in 1998.

By increasing reliance on international partnerships, Chavez would be in a better position to avoid the work stoppages that have shut down the company twice in the past year, several diplomats, oil executives and opposition analysts said. In doing so, the president would also cut out Venezuela's private sector, mostly composed of opposition members, from many lucrative contracts with the state oil company, weakening its influence in the industry.

"He may end up with a much weaker company or a different model, one where he invites the foreign capital he chooses," said Luis Pacheco, an executive with Petroleos de Venezuela (PDVSA) whom Chavez suspended from his job on Dec. 23. "In any event, every politician sees PDVSA as a political threat right now. You have 40,000 employees who believe they can change the course of the country."
(snip/...)

http://72.14.203.104/search?q=cache:Ai5MWjNOynkJ:www.franz-lee.org/files/spa_00148.html+PDVSA+%2B+Chavez+%2B+fired+%2B+strike+%2B+Pacheco&hl=en&gl=us&ct=clnk&cd=3

~~~~~~~~~~~~~~~~~~~~~~~

Looking back at the power play by these opposition PDVSA officials, the current Venezuelan government looks brighter, and brighter, doesn't it?

Thanks a lot, Robien, for your concern.

[Commie Pinko Dirtbag]

49. Hm. No axe to grind there, nosiree. -nt

[Guy Whitey Corngood]

51. Are you implying that the guy's full name might be Corporate Mike Pacheco?

[Commie Pinko Dirtbag]

53. Hm. That even looks plausible. But you know,

on the Internet nobody knows you're a dog.

(I remember a cartoon with that sentence, was that Far Side?)

[Guy Whitey Corngood]

54. I'm just connecting the dots. YouknowhatI'msayin'? n/t

[AllieB]

52. Something smells on this thread

and it isn't burning oil! :o

[truthisfreedom]

55. read post #3. here's a quote from the article referenced there...

The problem is a significant portion of Venezuelan oil isn't "Crude Oil" - it is synthetic oil. The reason is that Venezuela has vast deposits of "extra heavy crude" in the Faja del Orinoco that have to be processed to convert them into something akin to regular oil before they can be refined in a standard oil refinery. Because they have to undergo this processing before they are exported they have been classified as "synthetic oil" not "crude oil". Venezuela produces about 600,000 barrels per day of this type of oil and when you add it to the other 2.5 or 2.6 million barrels of oil you the over 3 million barrels of oil that Venezuela has always said it is producing.

[lovuian]

56. ok I'll add my two cents here... truthis freedom brings up the

BIGGEST POINT here

Saying you have huge oil deposits are decieving

Canada has huge deposits due to the Tar deposits... it has the POTENTIAL for lots of oil BUT it takes more energy to get it...

Venuezuela has huge deposits of thick crude... that takes LOTS of refining and lots of chemicals to clean it... that is not a plus...

Iran has light crude... so you can see why Iraq and Iran were first on the list of Bush...

Its the prime stuff...
and Chavez looks to me like he is being squeezed by the refineries...

[JCMach1]

61. A Wonderful case of don't believe all the BS you read!

Venezuela just had its reserves upgraded--

...Venezuela's proven oil reserves currently are estimated at about 77.2 billion barrels, but if undeveloped deposits of extra-heavy crude are factored in, the number would jump to 270 billion barrels. That alone would vault Venezuela past Saudi Arabia, which has 262 billion barrels in reserves, but Oil Minister Rafael Ramirez told The Guardian that the government wants OPEC to recognize the country's total reserves as close to 312 billion barrels... http://www.stratfor.com/products/premium/read_article.php?id=264316&selected=Analyses