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To: M. Espinola
Only $hitgo's refineries can refine Venezuelan oil, so Venezuelan oil is not
sought after like light sweet crude.

Venezuela's oil production has already peaked, and Chavez is going to need some heavy foreign investment in order to extract heavy and extra sour oil from the Orinoco belt.

As someone with relatives in Venezuela, I can say that if it weren't for oil, Venezuela would already be like Haiti or Bolivia.

Best regards,
16 posted on 04/24/2006 7:02:41 AM PDT by economist-student
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To: economist-student
Only $hitgo's refineries can refine Venezuelan oil, so Venezuelan oil is not sought after like light sweet crude.

Well, that's not really true....lots of people were taking bundled Mexican Mayan heavy (about 22 degrees API, slightly sour) in order to get the Reforma Light (about 43 degrees, and sweet). It's just a matter of the yield being a lot more valuable from a barrel of Reforma Light or Louisiana Sweet Light than from a sour or heavier crude.

Canadian heavy Lloydminster is so dense that people have to drill the lows to look for it -- it's about 12-16 degrees API ; and the Athabaska Tar Sands product is about six degrees. The Venezuelan stuff is in between the Athabaskan and the Lloydminster oils, gravitywise. Very heavy, but just keep adding hydrogen and you've got yourself a very refinable barrel.

Some of the Louisiana and northern Mexican liquids co-produced with natural gas (sometimes the reservoir is a single-phase fluid intermediate between gas and oil, and it phase-separates on its way out of the hole, as pressure is released, like Coke fizzing), usually called "condensate" (accent on the first syllable), is transparent pale yellow or white and has API gravities north of 60 degrees. That will burn in your gasoline engine -- though you wouldn't, because it would ping a lot and the co-produced metals, including e.g. vanadium (a hardening agent) would cause your rings to harden up and scuff your cylinder walls, and also to become more brittle, possibly cracking at higher RPM's.

18 posted on 04/24/2006 1:34:17 PM PDT by lentulusgracchus ("Whatever." -- sinkspur)
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To: economist-student
You have presented excellent insight into the Venezuelan oil situation. Hugo's Iranian close ties are any sign of mounting danger. Let's us hope Hugo the Horrible day's are numbered.

Cuba, Venezuela to Refurbish Oil Refinery

Iran-Venezuela Oil Cooperation

Oil Producers, Consumers Say Prices Will Stay High for Years

Iranian experts to train PDVSA’s engineers

19 posted on 04/24/2006 8:36:16 PM PDT by M. Espinola (Freedom is never free)
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