Good point. Or as Arte Johnson used to say...
Posted on 11/25/2022 8:16:47 AM PST by Vendome
Washington could grant Chevron approval to significantly boost oil production in Venezuela as early as this weekend, if the government of Nicolas Maduro resumes talks with the opposition.
This potential would mean an easing of sanctions against Venezuela at a time when the United States is pushing for higher oil production to ease soaring prices.
Easing sanctions on Venezuela is among the only options left to the Biden administration to increase oil production. OPEC+ has refused to heed Washington’s calls for a production hike; instead, cutting production by 2 million bpd through the end of the year. Sanctions will not be eased on either Russia or Iran
(Excerpt) Read more at oilprice.com ...
Actually it’s more than that. US oil left Venezuela because Hugo kept changing the contracts after the fact, effectively seizing oil infrastructure after it was built for less than agreed. After this happened repeatedly, the oil companies finally just abandoned their investments and walked away.
So for them to go back and try it again, they must be getting some kind of assurances from the US that they will be compensated if and when it happens again. Or rather, the banks fronting the money have assurances they will be made whole when Maduro stiffs them on the payments.
Bull.
“Exactly right! Why the heck does Chevron need US government permission to expand production in another country?”
Not just “another country”.
Now Biden has 4 rings in his nose Xi gets first pull.
And... when Gore said that he was a major shareholder in Occidental Petroleum.
-PJ
Russian Oil Production is virtually the same today as it was prior to the Ukraine War. Our sanctions on their oil and gas did nothing. Oil is fungible on the world market. Russia does not care who buys it as long as it is sold. These sanctions on oil and gas were idiocy that have hurt Western Europe grievously and somewhat the USA. There are many ways to hurt Russia economically but oil and gas is not one of them.
Europe does not have a great deal of oil reserves but does have considerable natural gas reserves. They refuse to exploit them. Thus, they made their own problem. Trump told them and they laughed at him.
The reason for high gasoline prices in the USA is Biden administration policies of stopping lease sales, extreme environmental restrictions on drilling, lack of new refining capacity, stopping the keystone pipeline, etc. However, I do give Biden credit for the recent lowering of gasoline prices. It is called supply and demand. WE ARE IN A RECESSION AND DEMAND IS FALLING! Biden’s economic insanity caused this recession.
“Go Brandon”
What difference does it make to climate change if we burn Saudi oil or our own? The demand is fairly inelastic and we’re going to use what we need regardless of price or source. It’s Econ 101.
He goosed "supply" by draining our Strategic Petroleum Reserve to heretofore not seen low levels. It was all part of his despicable vote-buying for the midterms.
Good point. Or as Arte Johnson used to say...
Now if they could only get permission to ramp up oil production in California.
The United States was a total petroleum net exporter in 2020 and 2021. In 2021, the United States exported about 8.54 million barrels per day (b/d) and imported about 8.47 million b/d of petroleum, making the United States an annual total petroleum net exporter for the second year in a row since at least 1949. Total petroleum net exports were about 0.06 million b/d in 2021, and total petroleum net exports in 2020 were 0.63 million b/d. Also in 2021, the United States produced about 18.77 million b/d of petroleum and consumed about 19.89 million b/d. Even though U.S. annual total petroleum exports were greater than total petroleum imports in 2020 and 2021, the United States still imported some crude oil and petroleum products from other countries to help to supply domestic demand for petroleum and to supply international markets.
The United States remained a net crude oil importer in 2021, importing about 6.11 million b/d of crude oil and exporting about 2.96 million b/d. However, some of the crude oil that the U.S. imports is refined by U.S. refineries into petroleum products—such as gasoline, heating oil, diesel fuel, and jet fuel—that the U.S. exports. Also, some of imported petroleum may be stored and subsequently exported. But that changed with the Obama/Biden administration changing of our policies concerning the petroleum industry.
With the decision during the administration of former President Barack Obama to end a four-decade near-embargo on U.S. oil exports in 2015, U.S. exports have grown in value from less than $2 billion in 2009 to more than $65 billion in 2021. Oil was, in fact, the nation’s third most valuable export, trailing No. 1 gasoline and refined petroleum products and No. 2 civilian aircraft.
So, the increase of Venezuelan oil coming ashore in the United States went largely unnoticed, except of course to Chevron and the Venezuelan government. What that led to was during this time, post 2015, was oil imports from Canada topping 50% of the total in 2020, a first, and again in 2021.
Can’t see the forest for the trees.
wy69
I wonder how this is going to help since refineries are running at full capacity, and only some refineries can even handle that heavy sludge from Venezuela.
At one time Venezuela owned a couple of refineries in the US (one in Corpus Christi and I think one in Indiana??) which were optimized for Venezuela’s heavy crude. Hugo sold them at some point when he was strapped for cash, but it’s possible they can still handle it, or could be refitted to handle it.
Someone else may be more up to date on the subject than I am…
This will bring down the price of gas. This will lower electric costs. You might think this is good news but not so to the people who are happy to see the economy tank if its good for the GOP
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