Tag Archives: Venezuela

U.S. gasoline price increases, surge to all time high

Posted on by
Reply

U.S. gasoline prices raised to a record $3.10 a gallon topes all time high $3.07 a gallon in September 2005 after Hurricane Katrina disrupted refinery operations and oil production along the Gulf Coast. The price increased for regular unleaded gasoline 5 cents over the last week and is up 16 cents from a year ago. Stiff increase in gasoline prices are reducing consumer spending, which accounts for about two-thirds of U.S. economic growth. Consumers also fears that gasoline prices can cross the $4 level, but Energy Information Administration (EIA) insures that prices will hang on near $3 a gallon for most of the summer. Oil industries are going through the tough period as rising militant activities including kidnapping, extorting and blowing pipeline on Nigeria’s oil delta, which threat laborer to stop drilling oil in the delta. Largest oil driller of oil in South American region Venezuela also walks out from IMF and WB, and nationalizes its all oil companies, in which American companies were major stockholders, set US on back foot. To get out from the critical condition EIA, urge OPEC to increase oil production this summer, heads of the EIA, Guy Caruso said We do think there will be a need for more OPEC oil The prices hit to all time high on the eve when the US first man ordered government to look for other energy sources to curtail U.S. gasoline consumption. President Bush said Our dependence on oil creates a risk for our economy, because a supply disruption anywhere in the world could drive up American gas prices to even more painful levels President Bush ordered several agencies to finish the work by 2008 that he wants to make lowered the gas emission by the end of his tenure. Nevertheless, market analyst do not agree with the president and quoted that, it is not as easy as president think, it will take time, even after ten year down the line from today, US will lessen its dependency on gasoline only 20 percent. Image: greenpeace Via: CNN

Oil largesse by Venezuela; clout in Caribbean on rise

Posted on by
Reply

Love him or hate him, but you have to like the way he flaunts his oil reserves. The fact that Venezuela has the largest proven oil reserves outside of the Mid-east has permitted Hugo Chavez (Venezuela’s President) to do a lot of things which he otherwise wouldn’t have dared. 4th Petrocaribe summit in Cuba marked another such event. There Chavez offered its Caribbean partners to pay for oil in form of goods and services. Epitome of perverted socialism, Chavez also attacked US capitalism and said that Petrocaribe and its member nations were creating a new ‘new geopolitics of oil.” He went on: In spite of the Yankees, our oil and gas will always be at the service, first of Venezuela, and at the same time of our brother nations of Latin American and the Caribbean. The summit was held in the southern city of Cienfuegos, Cuba, and marked an extension in the number of member countries of Petrocaribe. Honduras joined the ranks to bring the total membership of the alliance to 17 nations. The entire concept of Petrocaribe is based upon Venezuela using its oil to increase its influence in the region. Venezuela supplies oil on preferential terms to the Caribbean nations, giving huge subsidies. The Petrocaribe mechanism allows its member countries to defer payment on 40% of the oil that they buy from Venezuela for up to 25 years. On this amount these nations pay interest at a mere 1% annually. Chavez has offered other signatories to become a part of the arrangement that currently exists between Venezuela and Cuba. Every year Cuba pays for its oil by offering free services like teaching and medical in return. Cuba has sent 20,000 doctors and teachers to work off its oil-debt that is estimated at $3billion a year. And of course, Chavez’s visit to Cuba would have been incomplete without meeting his dear and ailing friend Fidel Castro. Before the summit, Venezuelan President spent nearly two and a half hours with Castro. Castro, subsequently, wrote a letter to Chavez, congratulating him on his ‘brilliant’ job in hosting the Petrocaribe summit. The analysts have mixed opinions when it comes to the Petrocaribe initiative. While it is true that several Caribbean nations would be unable to pay for their oil, especially as price of crude hovers around $90 a barrel. The mechanism becomes crucial for relieving their oil-burden and thus simulating economic development in these nations. But there’s a flip side too. Chavez’s generosity is rightly dubbed as an ostensible attempt to spread his leftist ideology in the region. Besides, critics say the deal supplies oil at market prices and is increasing the indebtedness of small Caribbean states. To reiterate: you’ve got to love the way Chavez uses his resources. It ain’t easy to trash America. Via

Venezuelan oil driller gets majority stakes in country

Posted on by
Reply

After nationalizing country’s oil reserve, Venezuela government has forced foreign oil drillers to sign a pact, in which they will sell their majority stakes to state-run Petroleos de Venezuela, S.A. New norms have forced to change hands as Hugo Chavez provides only two options, as one is to opt or to leave country altogether. Two American oil giant, Exxon Mobil and ConocoPhillips have firmly rejected Venezuelan government offer to negotiate with the new norms as they are ready to leave country. But four others Statoil, BP, Total and Chevron have signed the deal and ready to work with the Venezuelan PDVSA. We got the detail of six heavy oil projects in Venezuela about the revised stakes and estimated production. In CERRO NEGRO: Petroleos de Venezuela SA (PDVSA) will own 83.37 percent and BP PLC will left be 16.63 percent stake, whereas previously PDVSA owned only 41.6 percent; Exxon Mobil 41.7 percent; BP 16.7 percent, and will produce 105,000 barrels per day. In SINCOR: PDVSA gets 60 percent dominance, Total was left with SA 30.3 percent and Statoil ASA 9.7 percent, and total production will be 180,000 barrels per day. Previously PDVSA had 38 percent stakes, Total had 47 percent and Statoil were enjoying with 15 percent. In AMERIVEN: PDVSA get access to ConocoPhillips 40 percent additional shares and its total stakes rose to 70 percent, whereas Chevron Corp. is firm on its previous stakes 30 percent and will produce 190,000 barrels per day. In PETROZUATA: PDVSA successfully gets 100 percent stakes, in which ConocoPhillips owned 50.1 percent, but as it didn’t sing the new Venezuelan pact, PDVSA get access to 100 percent stakes. PETROZUATA will now produce 104,000 barrels per day. In LA CEIBA: PDVSA will get advantage over the 50 percent stakes of Exxon Mobil and will be empowered with the 100 percent equity. In COROCORO: PDVSA will rule with the additional 36 percent stakes, which it acquire from the ConocoPhillips 32.5 percent and OPIC Karimun Corporation 6.5 percent, Eni SpA successfully retain its previous owned 26 percent stakes. Venezuela has opted to nationalize country’s measure business. Chavez has already pulled out his country from the World Bank and IMF. Chavez led Country show its displeasure with U.S dominating ruling and urges other nation to pad up against U.S autocracy. Image Source

Chavez invites Russian investors to explore Venezuela

Posted on by
Reply

Venezuelan president Hugo Chavez urges Russia to increase its investment in his country as Venezuelan government has pushed western investors out from the state and those who are providing their services in Venezuela they are under immense pressure to co-ordinate with newly formatted law. Chavez led government has put the country on socialistic stance as the country nationalizes its oil reserve and its national bank. Venezuela has taken majority stakes from the foreign oil drillers and empowered state led Petroleos de Venezuela, S.A. with majority holdings. Four major western oil drillers accepted Venezuelan suppressive norms, whereas Exxon Mobil and ConocoPhillips firmly rejected the government proposed deal and decided to leave rich Orinoco Belt. New regulations squeezes American as well as European investors to invest in the country and new investors are abandoning their plan to provide services in Venezuela. Venezuela, which is folding arms against America, criticizes U.S. for its dominating laws and leveling their companies as “vampires”. After restricting western oil drillers, Venezuela is in dearth of investors, so it’s seeking Russian help to explore country’s rich oil deposit. While touring Russia, Chavez interacted with the Russian business leaders to develop “road map” that would bolster and diversify Russian-Venezuelan business ties – especially in the energy sector, including construction of a natural gas pipeline and oil refineries. Chavez said, We are very satisfied with the presence of Russian companies in our oil industry, and will do our best to develop this cooperation further Chavez disclosed, with Russia’s help Venezuela will build four massive oil refineries and will make headway for other 13 pending projects. President also invited Russian companies to invest in a 5,000-mile, or 8,000 kilometer, natural gas pipeline to Argentina, retrofitting Venezuela’s dilapidated seaports, and developing its gold mining and chemical industries. It’s notable that Chavez has pulled the country out of the international institutions like World Bank and IMF but many economists have warned that his steps can jeopardize country’s economy. Initially it was looking like that, but after this development socialist government is observing on the right path to lead the country. Chavez is on week-long EurAsian tour. During this tour Chavez will try to win favor from European and Asian nations to invest in Venezuela and enhance bilateral trade with Venezuela. Right now Chavez is in diplomatically isolated Belarus and after it, it’s expected that the leader will fly back to Russia to win the heart of Kremlin leader. Source

Oil may surge to $100 a barrel within months

Posted on by
Reply

Oil prices are surging incessantly, thanks to political mishmash among the oil producers. Currently, oil is available at $75.57 a barrel and it is highly anticipated that very soon it will cross the three digit marks. The Goldman Sachs Group has assessed that by 2009, oil will be priced at $100-a-barrel. Whereas, Jeff Rubin at CIBC World Markets calculates that $100 a barrel could hit within six to seven months. Increasing oil prices is pressurizing OPEC to drill more oil then it proposed to produce, otherwise the toll can climb to $95 per barrel quite likely this year. Higher prices have blown off many economies, hitting the international market really hard and eroding profits of major industries. Market experts blame that degrading political relations among the oil producers is responsible for the soaring prices and one breach in confidence can prove drastic to humpy-dumpy international economy. America is highly blamed for the ruckus, as its invasion in Iraq is considered a corner stone for the present depleting scenario. America’s relation with Iran and Venezuela are standing on hatred and malice. America is eying to attack on Iran and any military strike might prove drastic to the international fraternity. Violence affected Nigeria oil basin is also equally responsible for the galloping oil prices. Insufficient oil availability is affecting the demand, consequently increasing the oil prices. OPEC’s research division’s head Hasan Qabazard, claimed that prices should tally $60 to $65 per barrel, but reality is contrary to claim. Developing economies are worse hit by high prices, as to pace with the constant development; they need huge quantity of oil to run their industries. Emerging nations will fuel consumption up, as it will increase by 3.6 million barrels at the end of the year, which is equal to the daily production of Kuwait and Oman combined. At present, the gap between mid-east and western countries is widening, and from here, all seems obscure. For better and improved business ties, world needs equal opportunity. Image Via: IHT

Exxon Mobil and Conoco decline Venezuela takeover proposal

Posted on by
Reply

American energy firms Exxon Mobil and Conoco Phillips have rejected Venezuelan government offer to work with the state-run Petroleos de Venezuela, S.A. Venezuela has nationalized its oil industry and told international companies to either partner with PDVSA, or leave the South American country altogether. The government is taking over majority control of operations in the country’s most important and rich oil field Orinoco Belt. As experts analyze that Orinoco Belt has a potential of 80 billion barrels that may make Venezuela the world’s largest oil producer. Before nationalization, six oil drillers were drilling oil in the country’s oil reserve; PDVSA confirmed that only four drillers Norway’s Statoil, Britain’s BP, France’s Total and Chevron — plan to sign an accord that will keep them in the massive Orinoco oil reserve projects, whereas Conoco Phillips and Exxon Mobil may choose to leave Venezuela as they didn’t find an acceptable deal. Venezuelan government has issued the deadline of 26th June to accept terms for the government to take a majority stake in four heavy-crude upgrading projects valued above $30 billion. They can produce 600,000 barrels per day in the Orinoco reserve. If Conoco Phillips and Exxon Mobil don’t reconsider about the deal than US can face the shortage of oil supply to meet the growing demand of gasoline in the country. Oil prices are already firm on the $3 per gallon so it casts further doubt on how and where America will find its fuel supplies. Chavez has pushed a nationalization drive this year, taking over U.S. companies’ assets in the telecommunications and electricity sectors as part of a self-styled socialist revolution in the fourth-largest exporter of oil to the United States. Via: BBC

Chavez woes neighbors’ with oil offer

Posted on by
Reply

Unstable oil prices have already eaten into the many economies and big consumers like US and European countries are accusing Iran, Iraq, Russia and Venezuela for it. If the western countries’ allegations are right than we should praise Venezuelan President Hugo Chavez effort, who wants to satiate the energy needs of his Latin America allies. Recently, Venezuela has struck the energy security treaty with Argentina and intended to sign similar treaties with Uruguay, Nicaragua, Ecuador and Bolivia. While signing the deal, Chavez didn’t forget to launch a verbal attack on Washington and accused America as a very serious problem and its insatiable voracity for oil will claim many innocent lives. I think anti-American countries are right on the point that State is using its power for grabbing extra oil unfairly. In 2003 US invaded Iraq for mass destructive weapon, but ironically it found nothing, but yes its soldier killed millions of innocent Iraqi and rapped defenseless women, pity for self claimed sophisticated gentry. One of American ally in Iraq, Australia has admitted that they support Iraq invasion for oil only, therefore it’s clear that there were no Saddam mania, but, absolutely oil altogether. Now America is vying for Iran, beware! America, it’s not Iraq where you were welcomed for research weapon, it’s Iran where your army will feel the heat of dessert and flame of heated oil. Venezuela’s deal, definitely a political motivated step, where no amity for the neighbor in it, but a step forward to make itself secure from the oil dragon name America, I suppose, and I also feel that if America is going to ruin the countries, merely for its mean interests, than lobbing against it, will be good for the small countries and humanity as well. Image Source

There is enough oil in the market: Venezuela

Posted on by
Reply

Unstable oil prices are dithering major economies as recently U.S. crude oil prices surged to record highs of $78.77 before falling to around $72. America urges OPEC to boost production to keep the tempo of oil prices stable, but Venezuela’s oil minister Rafael Ramirez commented that there is enough oil in the market and no reason for OPEC to increase production. OPEC has already cleared its intention about the additional production that it will decide to increase production after its schedule September’s meeting, but Venezuela’s open back-up to the group will definitely add worries to the world market. America is arraigning that oil producing countries are not pumping enough oil to end the volatility, whereas oil producers group is impeaching that geo-political affairs are more responsible for the higher prices rather than short supplies. Although OPEC decision might be correct on the forefront, yet it can put many dependent nations on the dock as oil supplies can diminish amid the winter arrival on the Northern Hemisphere. In that case, OPEC contribution will count high, while Venezuela’s further move will also be accountable. Venezuela has nationalized its oil reserve and signed a conditional deal with western drillers. Chavez led country still looking for foreign investors to develop Orinoco River basin, but new conditional role of Chevron, BP, Total and Statoil will be the most venerable for the stability in world market. Image Via: IHT

Venezuela stops oil supply to Exxon Mobil as a retaliatory measure

Posted on by
Reply

This can be described as the battle between nationalization and privatization, between national interest and transnational authority, oil supplier’s countries and the non-oil suppliers and Venezuelan pride and US hegemony. While rising oil prices is feeding the inflationary forces of the US economy, the recent announcement by Venezuela to stop selling crude to Exxon Mobil Corp. might bring more difficulties to the US economy on the verge of an impending recession. Exxon Mobil has moved a British court against the Venezuela government’s move on nationalization of one of its four heavy oil projects in the Orinoco River basin. The British court has issued an injunction temporarily freezing $12 billion worth assets of the Venezuela state run Petroleos de Venezuela SA (PDVSA). As a retaliatory measure, Venezuela has decided to stop oil supply too Exxon Mobil. With Venezuela being the fourth largest supplier of oil to US, its decision to cut oil supply to Exxon Mobil might cause rise of crude prices in the US. However, Venezuela itself will also be adversely affected by the decision of President Hugo Chavez since the Venezuelan economy is heavily dependent on US oil exports. In the end, it will be the common citizens who will be the main losers in the commercial strife between the two countries. Image Credit: Geelongadvertiser Source: CNN