Falling oil prices are not a US-EU-Saudi plot against Russia, Iran and Venezuela… though their effect is certainly not unwelcomed..Foto: REUTERS/Jim Bourg
[Printed in IP Journal, German Council on Foreign Affairs] Pin-pointing the reason for the dramatic – and continuing – fall in the price of oil is relatively easy: OPEC held its 166th conference in late-November 2014 to decide on a strategy to address oil prices, which had been falling at five to ten percent per month since July. Rather than pursue a production cut
Posted in Chavez, Energy and Geopolitics, Euroepen Union, Global Oil system, international relations, Iran nuclear, Oil prices, Oil supply, OPEC, PDVSA, Persian Gulf, Putin, Resource conflicts, Russia, Sanctions, Saudi Arabia, The USA
Tagged Ali Al-Naimi, Business and Economy, Chavez, Energy, geopolitics, Iran, Middle East, oil sector, OPEC, Petróleos de Venezuela, Rafael Ramírez, Saudi Arabia, United States, Venezuela, Washington
If you’re in New York: Luiz Pinto and I speak at Columbia University’s Institute for Latin American Studies (ILAS) on post-Chavez Venezuela, 12-noon, Thursday, 9 October:
Posted in Chavez, Chavez lagacy, Chavez legacy, heavy oil, Hugo Chávez, Latin America, Leopoldo López, Maracaibo, PDVSA, PDVSA weakness, Uncategorized, Venezuela oil, Venezuela update, Venezuelan Democracy
Tagged Caracas, Chavez, Chavismo, Columbia University's Institute for Latin American Studies, Heavy crude oil, Hugo Chávez, Latin America, Maracaibo, Nicolás Maduro, oil sector, PDVSA, Petróleos de Venezuela, Rafael Ramírez, Venezuela
Last week, I was quoted in the Wall Street Journal on why Petróleos de Venezuela SA (PDVSA) is looking to sell its Citgo refining affiliate in the USA. The key motivation, in my estimation, is to finance projects critical to … Continue reading
PDVSA oil rigs in Venezuela (TalCual)
Throughout 2012, and especially after President Hugo Chávez’ death in early March 2013, Venezuela’s national oil firm, Petróleos de Venezuela S.A. (PDVSA), has taken measures beyond anything done in the past decade to raise its lagging production. While the likely impact merits cautious analysis, the drivers of the Bolivarian Republic’s scramble for increased oil revenues are clear. … Continue reading
Posted in Chavez, Chavez lagacy, Chavez legacy, China, Faja of the Orinoco, Gaddafi, heavy oil, Latin America and Caribbean, Libya, Maracaibo, Oil prices, OPEC, PDVSA, PDVSA weakness, The USA, U.S. oil, Venezuela oil, Zulia
Tagged Beijing, Carabobo, Caracas, China, Heavy crude oil, Hugo Chávez, Nicolás Maduro, OPEC, PDVSA, Petróleos de Venezuela, president hugo chavez, Rafael Ramírez, South America, United States, Venezuela, Venezuelan
Groundbreaking, PetroChina-CNPC refinery for PDVSA heavy oil. It is to be China’s largest. (April 2012)
Over the past few weeks, I have been looking at the state of the Venezuelan-Chinese oil alliance that Hugo Chavez has so fervently championed. The picture that emerges is not what one might expect. Here is an overview, in qualitative terms. [Correction: I originally wrote Ramirez reported that PDVSA produced “60,000” new barrels of Faja oil in 2013. He actually said “20,000”.]
A. Structural Changes – Vertical Integration with China
Till now, commentators have looked primarily at the obligations of the Bolivarian Republic of Venezuela (BRV) to send oil to China to repay Beijing’s huge loans. However, there are major changes afoot in the structure of this relationship, no matter who succeeds Hugo Chavez. Developments on the ground in both countries show an energy infrastructure buildup will soon bring significant cross-border vertical integration. Soon, Venezuelan oil will not be shipped to China simply to fulfill financial-and-contractual obligations, but also for locked-in infrastructural reasons.
All indications are that the Chinese side is actively fulfilling the obligations it entered into ca. five years ago (esp. December 2007) to build oil tankers, pipelines and refineries in China in order to import and process Venezuelan heavy crude.
Posted in Chavez, Chavezsuccession cancer, China, Faja of the Orinoco, heavy oil, Hugo Chávez, PDVSA, U.S. oil, Uncategorized
Tagged Heavy crude oil, Hugo Chávez, oil sector, People's Republic of China, Petróleos de Venezuela, Rafael Ramírez, United States
(Greetings! It’s good to be back blogging.) The common perception is that Chinese oil companies in Venezuela are winning big deals on very favorable terms. However, as I’ve stressed in previous posts, Beijing is actually very frustrated not to be getting the deals it expects for new Faja heavy oil fields, especially considering its big investments in the Bolivarian state. More evidence continues to emerge.
From 21-23 November the “10th Meeting of the China-Venezuela High-Level Committee” took place in Caracas at the Hotel Gran Meliá, with something like 400 businesses and state representatives coming from China. Continue reading
Posted in Chavez, China, Energy and Environment, Faja of the Orinoco, heavy oil, Hugo Chávez, international relations, PDVSA, Resource conflicts, The USA, Uncategorized, Venezuela diplomacy
Tagged Beijing, Carabobo, Caracas, China, Petróleos de Venezuela, Rafael Ramírez, Sinopec, Venezuela