Venezuela is importing oil from Iran

[TroglocratsRdumb]

Why is Venezuela importing oil from Iran?
Venezuela is an oil producing nation.
The Marxist stole all of the oil company's property.
Don't the Marxist know how to drill for oil?

 

[Muhammed]

They are importing a lot more than oil.

 

[Moonglow]

Probably taking it off their hands to refine.

 

[Doc7505]

Why is Venezuela importing oil from Iran?
Venezuela is an oil producing nation.
The Marxist stole all of the oil company's property.
Don't the Marxist know how to drill for oil?

~~~~~~
They also don't know how to keep the pumps working, Meanwhile Aruba and Curacao will not ship the refined product to Venezuela because Maduro can't pay for it.

 

[Doc7505]

Probably taking it off their hands to refine.

Venezuela no longer has refining capability. They lost that when they expelled all the technical engineers.

Chavez drives a hard bargain, but Big Oil's options are limited

On the hot, shrub-covered plains around this dusty, dingy town, an odd courtship is being...

www.sfgate.com

Venezuelan Oil and Hugo Chavez: a Tangled Tale

The rapid deterioration of Hugo Chavez's health raises the question of why Venezuela – and by extension Chavez – plays such an integral role in the global energy market.

www.cnbc.com

How Venezuela Ruined Its Oil Industry

Had former Venezuelan President Hugo Chávez managed the country's oil industry differently, the country might not find itself in its current dire predicament.

www.forbes.com

 

[Muhammed]

Probably taking it off their hands to refine.

Venezuela no longer has refining capability. They lost that when they expelled all the technical engineers.

And I'll add to that, Iran has less than a dozen major refineries. They could easily be crippled.

 

[Penelope]

So what, countries can trade with whoever they want, and without the US permission.

 

[Jimmy_Chitwood]

Why is Venezuela importing oil from Iran?
Venezuela is an oil producing nation.
The Marxist stole all of the oil company's property.
Don't the Marxist know how to drill for oil?

Has anybody blamed Trump yet?

 

[SassyIrishLass]

The joys of Socialism.

 

[Muhammed]

So what, countries can trade with whoever they want, and without the US permission.

Until we say different.

 

[Aletheia4u]

Why is Venezuela importing oil from Iran?
Venezuela is an oil producing nation.
The Marxist stole all of the oil company's property.
Don't the Marxist know how to drill for oil?

The best thing for them to do is to buy oil and stored it while it is cheap. And when everything settles down, and the oil prices shoots back up. Then they can sell it and make a profit from it.
And so right now is the best time to fill up their reserves while the prices are cheap.
The Deep State are trying their best to bankrupt that country, because Maduro will not change their Constitution back the way the Deep State has created it to be.
And so they are saving up for a raining day.

Bankrupt Venezuelan Oil Firm PDVSA Proposes Selling Oil Assets To Private Sector

Ut-oh! System fail: PdVSA proposes privatization in socialist (or communist) Venezuela.

www.forbes.com

The English version of the site will soon be available

We're working on a new version of the site in English.

www.investigaction.net

 

[Papageorgio]

So what, countries can trade with whoever they want, and without the US permission.

Who said they couldn’t? They are asking why would an oil producing nation be importing oil? See the difference?

 

[Muhammed]

So what, countries can trade with whoever they want, and without the US permission.

Who said they couldn’t? They are asking why would an oil producing nation be importing oil? See the difference?

They are importing refined oil products.

 

[Andylusion]

Why is Venezuela importing oil from Iran?
Venezuela is an oil producing nation.
The Marxist stole all of the oil company's property.
Don't the Marxist know how to drill for oil?

It is not that they don't know. It's that they don't understand economics.

Now I should say most have no idea how anything in the world works. But even if they did, it's the economics that destroys them.

The ruining of the Venezuela oil industry, came in 4 parts.

The first part was confiscation of foreign investment.

The left-wingers both in Venezuela, and in the US, and around world... are ridiculously stupid on this aspect.

They will say that having Exxon making a contract in Venezuela, is somehow the US stealing Venezuela resources. And left-wingers in Venezuela believed this idiocy too.

So they confiscated the contracts, and the oil fields, and the processing plant.

Victory against resource theft, right?

Just one problem. The entire reason Exxon was contracted to being with, is because the specific oil fields Exxon was contracted to produce from, Venezuela had no technical ability to capitalize on. They didn't have the know-how to get to that oil, or the money to do so. Exxon did.

So when the oil fields were confiscated, investment stopped. Oil was not produced. The oil processing facility being built by Exxon, is now idle. The Venezuelans simply don't have the money, or knowledge to run it.

What many people did not realize, was that even Venezuela's national oil company, PDVSA, was only increasing it's production of oil, by contracting with foreign companies.

The second step in national failure, was socializing the profits.

Oil productions is one of the highest capital investment industries there is. If you do not plow massive amounts of money back into oil production, you won't be producing oil for very long.

Exxon's investor relations publication, says they have employed $236 Billion dollars in invested capital. The average return on that investment is just 6%.

In fact, I was looking at just the 4th quarter of 2019, Exxon spent over $8 Billion dollars on capital investment. Keep in mind, capital investment does not include exploration. This is investing in existing known oil fields. They only brought in $14 Billion in profit. Nearly 60% of the profits were being plowed back into keeping the oil flowing. You don't do that, and the oil will stop flowing.

Hugo Chevaz, saw these profits as a means to fund social programs. He confiscated the profits of the oil companies, and the result was that the needed capital investment to keep even the existing oil well going, was stolen, and handed out to the poor.

Forget about exploring for new oil well location... just funding existing oil production was eliminated, and thus oil production has continuously fallen.

The third step in failure, was the politicization of oil.

One of the reasons that politics nearly universally destroys anything touched by it, is because all things in life, carry a risk. Everything you ever do, will have some amount of risk.

Why then do people do anything? Because of the reward. Take Henry Heinz. Henry Heinz in built a company selling primarily horseradish, and borrowed on his house, and everything else he could, to keep the company open. He was even arrested, and from bankruptcy, lost nearly everything he had.

Just a few years later, he's making ketchup, and ended up one of the most wealthy men in the country.

This risk/reward Capitalist system, is what drives advancement in the face of risk. In 2008, I read the story of the owner of a tiny short-order restaurant on the side of a highway. He sold the store, and rented an oil drilling rig. After investigating hundreds of oil leases, he settled on a dozen. The first 5 oil wells he dig, all came up dry. No oil. Had he continued without finding oil, the rig lease would be up, and he would have lost all his money on nothing. Luckily for him, he struck oil on 4 of the remaining leases.

The problem with politicizing, is that the risk/reward system is completely eliminated, and you are left with only risk.

I'm reminded of the Iranian scientists, who after the sabotage to the reactor, were all executed. Of course it didn't matter that it was only because of those scientists that they had a reactor to be sabotaged. No reward for achieving goals, only risk for failing.

If some engineer at the national oil company PDVSA in Venezuela, were to convinced management to let him invest $100 Million in exploring for new oil wells... there would be no reward for finding new oil. But if that person spent the $100 Million, and failed to find oil, he would likely be eliminated from his position, and never allowed to work in the oil industry again.

And the final step in national failure, subsidizing the public.

A particularly astute observer, might ask the question why did Venezuela need foreign investment to build their oil production? Even right now, why are there no wealthy individuals in Venezuela willing to invest in the local market? Why do they even need to export oil?

And this is all true. The US built it's oil production abilities in the 1850s to 1900s, without foreign investment, without needing foreign technology, without the need for capital from the government, or anywhere.

So why can't Venezuela grow their oil industry, with the massive head start of already knowing they have the largest known oil reserves in the world, without the need of outsiders?

Simply put... because the government has put in place subsidies and price controls. Gasoline, and all oil products in Venezuela, are universally sold at a loss.

Gasoline in Venezuela right now, is sold at $0.004 per gallon. Or... 0.4¢ per gallon. Less than half of a penny per gallon of gas.

Obviously, you can't make a profit off of selling gasoline that cheap. And again, without that profit, you can't invest in finding new oil wells. You can't invest in improving or maintaining existing oil wells. And you obviously can't invest in creating the technology to get oil that you don't have access to right now.

^^^^^^^^^^^^^^^
All of this, is why Venezuela, the country with the most oil reserves in the world, now has to import oil from Iran.

 

[Andylusion]

So what, countries can trade with whoever they want, and without the US permission.

So much for caring about human rights, huh?

At least 40 Venezuelans have been killed in recent protests

Protests in Venezuela over the power struggle between President Nicolas Maduro and self-declared leader Juan Guaidó have led to the deaths of at least 40 people, the UN says.

www.cnn.com

That's not the point though. I don't care about them trading with Iran. In fact, it makes sense.

UN says it has evidence that Iran was 'shooting to kill' protesters

The United Nations says it has video evidence appearing to show that Iranian security forces were "shooting to kill" protesters during the country's latest wave of demonstrations.

www.cnn.com

Again, you don't care about murdered people at all, I know.

But again, none of this is the point.

When you say "so what" here is what.... Why does the one country on the face of the planet, that has the most known proven oil reserves, need to import oil?

Why? I'll tell you why. It's the post I just outlined. Socials. Socialism ruins everything, and every country it touches.

 

[Levant]

So what, countries can trade with whoever they want, and without the US permission.

Just WOW. You prove the lie in the left's claim that they are the party of the masses. Yeah!!! Go Chavez!!!! Go Maduro!!!! Communism Rocks!!!!!

But there should be (unfortunately our government has no balls) consequences for trading with Venezuela without US permission. No aid to those who trade with them. No military support in case of invasion by their enemies. Either countries are friends with Venezuela or they are friends with the United States. Binary choice.

 

[TroglocratsRdumb]

Why is Venezuela importing oil from Iran?
Venezuela is an oil producing nation.
The Marxist stole all of the oil company's property.
Don't the Marxist know how to drill for oil?

It is not that they don't know. It's that they don't understand economics.

Now I should say most have no idea how anything in the world works. But even if they did, it's the economics that destroys them.

The ruining of the Venezuela oil industry, came in 4 parts.

The first part was confiscation of foreign investment.

The left-wingers both in Venezuela, and in the US, and around world... are ridiculously stupid on this aspect.

They will say that having Exxon making a contract in Venezuela, is somehow the US stealing Venezuela resources. And left-wingers in Venezuela believed this idiocy too.

So they confiscated the contracts, and the oil fields, and the processing plant.

Victory against resource theft, right?

Just one problem. The entire reason Exxon was contracted to being with, is because the specific oil fields Exxon was contracted to produce from, Venezuela had no technical ability to capitalize on. They didn't have the know-how to get to that oil, or the money to do so. Exxon did.

So when the oil fields were confiscated, investment stopped. Oil was not produced. The oil processing facility being built by Exxon, is now idle. The Venezuelans simply don't have the money, or knowledge to run it.

What many people did not realize, was that even Venezuela's national oil company, PDVSA, was only increasing it's production of oil, by contracting with foreign companies.

The second step in national failure, was socializing the profits.

Oil productions is one of the highest capital investment industries there is. If you do not plow massive amounts of money back into oil production, you won't be producing oil for very long.

Exxon's investor relations publication, says they have employed $236 Billion dollars in invested capital. The average return on that investment is just 6%.

In fact, I was looking at just the 4th quarter of 2019, Exxon spent over $8 Billion dollars on capital investment. Keep in mind, capital investment does not include exploration. This is investing in existing known oil fields. They only brought in $14 Billion in profit. Nearly 60% of the profits were being plowed back into keeping the oil flowing. You don't do that, and the oil will stop flowing.

Hugo Chevaz, saw these profits as a means to fund social programs. He confiscated the profits of the oil companies, and the result was that the needed capital investment to keep even the existing oil well going, was stolen, and handed out to the poor.

Forget about exploring for new oil well location... just funding existing oil production was eliminated, and thus oil production has continuously fallen.

The third step in failure, was the politicization of oil.

One of the reasons that politics nearly universally destroys anything touched by it, is because all things in life, carry a risk. Everything you ever do, will have some amount of risk.

Why then do people do anything? Because of the reward. Take Henry Heinz. Henry Heinz in built a company selling primarily horseradish, and borrowed on his house, and everything else he could, to keep the company open. He was even arrested, and from bankruptcy, lost nearly everything he had.

Just a few years later, he's making ketchup, and ended up one of the most wealthy men in the country.

This risk/reward Capitalist system, is what drives advancement in the face of risk. In 2008, I read the story of the owner of a tiny short-order restaurant on the side of a highway. He sold the store, and rented an oil drilling rig. After investigating hundreds of oil leases, he settled on a dozen. The first 5 oil wells he dig, all came up dry. No oil. Had he continued without finding oil, the rig lease would be up, and he would have lost all his money on nothing. Luckily for him, he struck oil on 4 of the remaining leases.

The problem with politicizing, is that the risk/reward system is completely eliminated, and you are left with only risk.

I'm reminded of the Iranian scientists, who after the sabotage to the reactor, were all executed. Of course it didn't matter that it was only because of those scientists that they had a reactor to be sabotaged. No reward for achieving goals, only risk for failing.

If some engineer at the national oil company PDVSA in Venezuela, were to convinced management to let him invest $100 Million in exploring for new oil wells... there would be no reward for finding new oil. But if that person spent the $100 Million, and failed to find oil, he would likely be eliminated from his position, and never allowed to work in the oil industry again.

And the final step in national failure, subsidizing the public.

A particularly astute observer, might ask the question why did Venezuela need foreign investment to build their oil production? Even right now, why are there no wealthy individuals in Venezuela willing to invest in the local market? Why do they even need to export oil?

And this is all true. The US built it's oil production abilities in the 1850s to 1900s, without foreign investment, without needing foreign technology, without the need for capital from the government, or anywhere.

So why can't Venezuela grow their oil industry, with the massive head start of already knowing they have the largest known oil reserves in the world, without the need of outsiders?

Simply put... because the government has put in place subsidies and price controls. Gasoline, and all oil products in Venezuela, are universally sold at a loss.

Gasoline in Venezuela right now, is sold at $0.004 per gallon. Or... 0.4¢ per gallon. Less than half of a penny per gallon of gas.

Obviously, you can't make a profit off of selling gasoline that cheap. And again, without that profit, you can't invest in finding new oil wells. You can't invest in improving or maintaining existing oil wells. And you obviously can't invest in creating the technology to get oil that you don't have access to right now.

^^^^^^^^^^^^^^^
All of this, is why Venezuela, the country with the most oil reserves in the world, now has to import oil from Iran.

great explanation TY

 

[SassyIrishLass]

Socialism: Maduro lives high on the hog.... while the masses suffer


Get it demoquacks?

 

[Levant]

Socialism: Maduro lives high on the hog.... while the masses suffer


Get it demoquacks?

And the leftists, here on this site, here in the US, and around the world, will defend Maduro's right to trade the labors of the people in order to support his lifestyle. Suddenly the left supports free markets - free-market-communism, that is. That's where everything the masses produce gets traded globally to make sure the party leaders have caviar and champagne.

 

[Mac-7]

Socialism: Maduro lives high on the hog.... while the masses suffer


Get it demoquacks?

And the leftists, here on this site, here in the US, and around the world, will defend Maduro's right to trade the labors of the people in order to support his lifestyle. Suddenly the left supports free markets - free-market-communism, that is. That's where everything the masses produce gets traded globally to make sure the party leaders have caviar and champagne.

Socialism does not work because government pinheads with all the power do not know how to produce stuff efficiently