Venezuela Becomes Net Gasoline Importer in 2012

Reuters via VOA News ^

[PJ-Comix]

CARACAS — Venezuela in 2012 became a net importer of gasoline as a result of escalating problems at its refineries and increasing demand for fuel in its internal market, joining a growing list of countries that struggle with fuel supplies despite ample oil reserves.

The OPEC nation exported 30,000 barrels per day (bpd) of gasoline and naphtha last year, according to state oil company PDVSA's annual report. But it imported an average of 66,300 bpd of the same fuels from the United States alone, according to U.S. Energy Department data.

[PJ-Comix]

Just how messed up does an OPEC nation have to be to be a net IMPORTER of gasoline? Chavista OWS economics at work.

[thackney]

They are not the only net importer of gasoline.

Refineries are more complicated and expensive than pumping oil out of the ground and sending it to the loading dock.

[Vaquero]

ah....Marxism at work...
what a bunch of asshats.

coming to a country near you....by the current Marxist regime.

[3Fingas]

Why are we selling oil to Venezuela? Why should we help prop up that regime. We had a chance to support a coupe, but we failed to do so. Our bad.

[Vaquero]

Refineries are more complicated and expensive than pumping oil out of the ground and sending it to the loading dock.

right, you take the money earned from selling crude and have a refinery built.

[BitWielder1]

right, you take the money earned from selling crude and have a refinery built.

That how it works in a capitalist or even remotely sane country.
Not so in a communist dictatorship where everything is "centrally planned" by political hacks who have no clue how a civilized society really works.

[Mr. Lucky]

Don't be silly.

Refined petrochemicals are just pumped out of the ground with virtually no necessity for capital and only the slightest application of entrepreneurial skill; much the same way that triple-stacked, herbicide tolerant, corn hybrids just spring from the ground every year without the involvement of those mean old genetic engineers or money grubbing farmers.

[thackney]

Why are we selling oil to Venezuela?

We are not selling oil, we are selling more expensive refined products.

We import relatively low grade (heavy) crude oil from Venezuela. We import more than we need to meet our own demands. We refine the surplus keeping greater refinery capacity in the US and more jobs in the US. We sell some of the excess fuels back to Venezuela for a higher price than the same quantity of crude we purchased, which helps the trade balance.

In those transactions, we are making money from this OPEC nation for those quantities.

We are not helping promote the regime for this quantity; we are taking cash out of their system and putting into ours.

I call that a win.

[D Rider]

Governments are poor operators of business. They typically rob operating capital and defer maintenance. Then they wonder why output drops like a rock. End up with alot of broken sH!t and no money left to show for it.

[thackney]

you take the money earned from selling crude and have a refinery built.

Hush, don't tell them that. We are keeping jobs and profiting from these transactions. Not only that Venezuela subsidizes the sales to their people at low prices, so their government loses money twice on these transactions.

[3Fingas]

I would rather we sell it elsewhere, to Japan, or to some other country that doesn’t hate us. Just like I would rather trade with/import things from countries other than China, but I do see some of the logic in your explanation.

[DJ MacWoW]

Click The Pic To Donate

Support FR, Donate Monthly If You Can

[thackney]

Our selling it to Venezuela and not a farther away nation increases our FOB price (transportation cost).

Our selling to Venezuela prevents another stronger economic tie for a nation we might not want to see gain greater power in South America (I know, that argument is flimsy).

But I see keeping a cash flow from your enemy to you and not giving them more incentive to correct their problem a good thing.

[Vaquero]

... Not so in a communist dictatorship where everything is “centrally planned” by political hacks who have no clue how a civilized society really works.

exactly.....that is the zer0bama regime's future for America.

[3Fingas]

But I see keeping a cash flow from your enemy to you and not giving them more incentive to correct their problem a good thing.

Sort of like what OPEC was doing to us with oil all these years and what China does to us now with manufacturing. Sometimes saving/earning a quick buck is not good for us in the long-term. I think we should trade more with our allies and less with our enemies, but I realize this is not so simple a matter.

[PJ-Comix]

The dirty little secret here is that Colombia, which used to be a minor oil producer, is now approaching the same production as Venezuela despite a small Caribbean coastline. What they do is sort of drill sideways to pump the oil that Venezuela is failing to do due to incompetent management. BTW, years ago Chavez fired most of Venezuela’s oil workers and where do you think they ended up? In Colombia helping that country pump out that Caribbean oil.

[Ruy Dias de Bivar]

Do they still try to rub it in that their gasoline is sold to the public for 12 cents a gallon?

[thackney]

The dirty little secret here is that Colombia, which used to be a minor oil producer, is now approaching the same production as Venezuela despite a small Caribbean coastline. What they do is sort of drill sideways to pump the oil that Venezuela is failing to do due to incompetent management.

While Colombia is certainly increasing production, it is not from stealing Venezuela's oil. The have increased production all over the country.

I worked a few projects in Colombia a couple years ago. They are making good increases to their refineries as well to help keep them out of the same position Venezuela has reached.

[thackney]

Plus, Colombia has the coolest oil company logo in the world.

[PJ-Comix]

Colombia is benefiting from all those expert Venezuelan trained oil workers that Chavez stupidly fired.