Friday, August 26, 2016

Venezuela Can't Even Do Oil Anymore

Venezuela is an oil-rich country. However, it is currently unable to adequately extract oil, refine oil, or now even pay for imported oil.

Risk-averse suppliers are refusing to discharge cargoes to cash-strapped PDVSA without being paid first, unusual in an industry in which buyers normally have 30 to 60 days to pay after delivery. Others have stopped dealing with PDVSA entirely as it resorts to bartering its own oil in swap deals, according to traders and a company source who was not authorized to speak publicly.

The "good" news is that domestic demand for fuel is down, largely because the economy is such in bad shape. This is all happening in the context of decreasing reserves.

Finally, this is happening in the context of an opposition march scheduled for September 1, which is Thursday of next week.

At least there's Pokemon Go.


Quico 3:21 PM  

The part that really incensed me about that Reuters story is about the increased imports of a time when most oil wells in Monagas and Zulia *still* flare the associated gas because there's no infrastructure in place to produce it!

Greg Weeks 5:49 PM  

Does the MUD have an infrastructure plan of some kind?

shah8 3:00 AM  

Does it matter? Is there anyone there that could pull off an infrastructure project at all?

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