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Chavez warns of U.S. oil cutoff in Colombia dispute

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America might as well get it over with and invade. They are falsely condemned for planning such a deed. Thus since Chavez wants a war they should give him one.

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America might as well get it over with and invade. They are falsely condemned for planning such a deed. Thus since Chavez wants a war they should give him one.

Historically speaking, Chavez is totally right to be worried. Google Branco, Avarelo, Somoza, Cordoba, Suarez, Pinnochet, Batista, Trujillo, Diaz (but that's going really far back), Noriega, Duvalier (Papa and Baby).

I'd be worried too, were I in his position.

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lets see, iraq, afghanistan and soon north korea and venezuela, wow obama is certainly earning his 'peace prize', i just wonder when he is going to change the stars and stripes for the swastika.

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Everyone else can see America's oil vulnerability, I wonder why America can't.

BP oil spills, US involvement in the mideast, declining Alaskan oil production, high gas prices... you would think that Chavez would not have to hint around at this. The US has been vulnerable since 1973, and instead of doing something about it, it just buddied up with the Saudis and the Shah. Here we are almost 40 years later, and things aren't better with the US. They are worse.

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purplefiregobi, so since you're so wise what would you do? Obama didn't start either Afghanistan or Iraq. (The democrats tried to get us out and the republicans blocked all efforts) The North/South Korea situation has been going on for 60 years and the conflicts between Columbia and Venezuela aren't anything new.

So explain where you come up with i just wonder when he is going to change the stars and stripes for the swastika. What did Obama do that would lead you to vomit that statement? < :-)

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Chavez warns of U.S. oil cutoff in Colombia dispute

It's like a crazy drunk threatening to shoot himself if you come one step closer. Without oil revenues Venezuela's got nothing.

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Not anyone can just buy and process Venezuelan oil. It's heavy type of oil. Ya need to have the proper type of refineries.

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Chavez has run Venezuela into the ground and all his rhetoric is typical of a dictator trying to divert internal problems by stirring up national fervor!

The facts are that Venezuela will be the one that suffers if he does cut off the oil because they at most supply 10% of US imports (Canada supplies the largest part) and the US could easily off set that from other sources, more over the main company using Venezuelan oil is Citgo which is owned by the Venezuelan state oil company so they would hurt themselves even more.

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"halt oil sales to the U.S."

Wouldn't that halt oil payments from the U.S.?

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aday - (The democrats tried to get us out and the republicans blocked all efforts)

Yes, those evil, evil republicans, that currently do not hold a majority in either house, and for quite awhile, couldn't block legislation either. Yes, horrible. How did they block efforts now? lol, what a joke. You're going to have to do better then that aday if you want anyone but another kool-aid drinker to buy it.

On the subject of Venezuela. This is just more hot air. As others have said, the US can simply import more from other sources. Of course Venezuela would then sell to other consumers as well. It would increase their costs, as its a short distance between Venezuela and the US, but it wouldn't be that big of a deal for either party. The biggest concern though would be the refineries. As someone else mentioned, you have to have the right setup to process the oil. That would probably lead to a short term interruption. Still, Venezuela which is already struggling with food issues, due to Chavezs actions against Columbia, as well as his takeover of the food industry is the primary one thats going to be hurt by this.

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If folks would just consult the New York Times they would understand that Mr Chavez is real tight with Mr Obama, and that this is a little game the two of them like to play from time to time.

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China, Japan, India or even European countries would be pleased to buy Venezuelian oil. The US is not the only buyer. If Chavez offers a few dollars discount par barrel, he wouldn't have any problem to sell his oil.

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"Oil? We don't need your stinkin' oil!"

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China, Japan, India or even European countries would be pleased to buy Venezuelian oil.

No, they wouldn't.

The US is not the only buyer.

Yes, we are.

If Chavez offers a few dollars discount par barrel, he wouldn't have any problem to sell his oil.

Yes, he would.

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China does:

Oil-rich Venezuela will send resource-hungry China 100,000 barrels a day of crude oil for the next 10 years to pay for a $20 billion loan agreed to over the weekend, Venezuela Oil Minister Rafael Ramirez said Thursday. News from April 24, 2010.

It took me about 30 seconds to find this news SuperLib. A little more research would probably show more of the same.

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Obama has lost Venezuela.

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China only got 100,000 barrels a day for the next 20 days? The US gets nearly 10 times that much. It's entirely possible that a country will spend the time and the money to develop the capabilities to refine Venezuelan oil in large enough quantities to replace what the US buys from them. But it won't happen tomorrow. Or next week. Or next year. I'm assuming Chavez wasn't talking about suspending oil sales to the US in 2025.

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If Obama had stones and he'd cut off all oil purchases and bring Venezuela to its knees.

How?!

Since most US oil is bought from international spot market, your suggestion will just decrease supplies (ration Venezuelan oil) and global oil prices will rise... Pretty daft idea don't you think?!

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I think we could quite easily make up the supply of oil bought from Venezuela someplace else. Is it any more daft to let some jack-ass Castro-wanna-be tell us what we should/shouldn't do? Is is any more daft that we have an economic system that is so flawed that we're tragically reliant upon a fuel source that we must outsource (and on top of that is it any more daft that the holier-than-thou weirdo pseudo hippy environmentalists in this country vehemently oppose the idea of our extricating said oil from sources within our control because God help us we must save the spotted leaping horned toad from extinction - but conversely they don't give a rat turd that the countries such as Venezuela that we instead get our oil from don't give a damn about their version of the spotted leaping horned toad and its possible demise). Can the world get any more daft that it currently is? Certainly. So in the scheme of things, no I don't think my ideas is so daft. Thanks for asking though.

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I think we could quite easily make up the supply of oil bought from Venezuela someplace else.

./sigh sometimes you really have to ask whether people making hawkish statements are simply duped by reality.

The question is not whether the United States can easily get oil from other sources-- but whether US consumers won't be impaired by your suggestion... Again, since most US oil is bought from international spot market, your suggestion will just decrease supplies (and Venezuela rationing its oil) and global oil prices will RISE...

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And ./sigh - sometimes I wonder whether posters on here actually believe themselves to be so much brighter than the rest of us that our comments elicit smug sighs of disgust.

US consumers might be impaired. Any more than they already are by the whims of oil producing nations/those that set the price per barrel and price per gallon at the pump? I'm not so sure. It would hurt the Venezuelan economy far, far more than it would affect ours.

In your quite obvious omniscience, do you know as fact that Canada, the Saudis, Mexico, Nigeria or even Columbia, Brazil and some of the lessor providers could not make up the difference?

Likely you don't harken to the old days of gunboat diplomacy, but neither do most of us care to be pushed around by a third rate dictator in a third world country.

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@jruaustralia I'm not sure what you are trying to get at with the "most US oil is bought from international spot market".

But when it comes to Venezuela as I stated before almost all its oil imported to the US is done by one company, Citgo which is owned by the Venezuelan state oil company, so by cutting of the US it would be harming it self more.

Despite the fact that Venezuela is listed as the number three supplier to the US is is way, way below Canada and Saudi Arabia and any shortfall could easily be made up through other sources, all be it perhaps at a very slightly higher price but nowhere near the kind of economic damage Citgo and the Venezuelan state oil company would face.

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US consumers might be impaired.

Thank you, there... you did answer my question-- and as for the Venezuelans, just in case you're unaware, the Chinese did sent $20 bil worth of soft loans to this oil producing country.

And NO, those countries you pointed above-- the Saudis, Mexico, Nigeria-- sells their oil through the market... and for the highest possible bidder. Tough luck then if the Japanese or Chinese can outbid the US huh....

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(and Venezuela rationing its oil) and global oil prices will RISE...

What you fail to take into consideration here, is the fact that Venezuela depends on Oil money. Chavez's regime is propped up and supplied by the oil revenues. It needs to sell oil at around 40 dollars a barrel, at current production levels, just to break even. It needs more then that the fund the regime. Cutting off the US, cutting back on production would harm Venezuela. Sure, it would cause oil prices to rise in the short term, but then other producers could produce more to counter this as well. It doesn't get around the fact, that Venezuela needs the oil money, and that other refineries aren't really set up to handle Venezuelan crude. Yes some could process it right away, others could change over fairly quickly, but it would lead to significant shocks to the Venezuelan economy. And with Chavez so ready and willing to nationalize whatever he sees, it means foreign investors to counter that shock won't be readily stepping forward.

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Molenir at 04:54 AM JST - 29th July. What you fail to take into consideration here, is the fact that Venezuela depends on Oil money. Chavez's regime is propped up and supplied by the oil revenues. It needs to sell oil at around 40 dollars a barrel, at current production levels, just to break even. It needs more then that the fund the regime. Cutting off the US, cutting back on production would harm Venezuela.

Doesn't matter. They have China for leverage. Recently, China has promised to lend $20 billion U.S. dollars to Venezuela, China is pushing to deepen ties with oil-rich nations in the developing world and now the world's third biggest oil importer. The loan is a boost to his efforts to diversify sales of the major oil exporter away from U.S. China is deepening ties with resource producing nations around the globe to fuel its rapid growth. China is not as concerned as they used to be about irritating the U,S. They will continue to be very aggressive about investing in places like Venezuela.

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Does everyone just ignore the most obvious right now Venezuela exports to the US accounts for 60% of it exports and an even larger % of its revenue "Petróleos de Venezuela, S.A." the state owned oil company make much of its revenue from its refineries of which most are based in the U.S.A!

So even if the US depends of Venezuela for around 10% of its oil that is nothing compared to the 60% plus "Petróleos de Venezuela, S.A." depends on from the US.

Crude oil sales are not stable and the big money is in the refined products and "Petróleos de Venezuela, S.A." is set up for the US market on US soil and add in the loss of it retail sales through Citgo and I would guess that Venezuela would need to up production and sell twice the cured they are now just to break even.

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The loan is a boost to his efforts to diversify sales of the major oil exporter away from U.S. China is deepening ties with resource producing nations around the globe to fuel its rapid growth. China is not as concerned as they used to be about irritating the U,S. They will continue to be very aggressive about investing in places like Venezuela.

Potentially using China as leverage is quite smart... The world isn't short of buyers.

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China only got 100,000 barrels a day for the next 20 days?

Not exactly, 100,000 barrels a day of crude oil for the next 10 years to pay for a $20 billion loan

They will use the oil, and if they've made the deal, they most probably already have the capability to refine Venezuelan oil.

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Crude oil sales are not stable and the big money is in the refined products and "Petróleos de Venezuela, S.A." is set up for the US market on US soil and add in the loss of it retail sales through Citgo and I would guess that Venezuela would need to up production and sell twice the cured they are now just to break even.

And what, in your opinion, should the United States do just in case the Chinese also move in to your traditional sources of oil like the Saudis, Mexicans and Canadian crude? Would you suggest for the American gov to launch some more protective measures to halt the Chinese abilities to buy oil? Would you then restrain these countries abilities to bargain bigger bucks $$$ for their crude oil?

Living in resource-rich Australia, I sure do know the answers to those questions.... and that's not a lot :(

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I think the point was that Chavez is an idiot for expreeing shock opinions like the one in this article. It's a stupid way to "stand up" to the US no matter what China is doing. If Chavez followed through on his treats then Venezuela would cease to function. If that angers some people then they'll just have to find a way to deal with it.

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@jruaustralia; What does China have to do with any of this?

This has nothing to do with protective measures by the US! All you are trying to do is divert form the FACT that "Petróleos de Venezuela, S.A." is the actual exporter, importer and refiner of Venezuelan oil that ends up in the US.

Cutting of the oil to the US means cutting off the oil to their own refineries located in the US and losing enormous amounts of income, the profits from crude oil is quite low its a volume business but the profits from refined product is a different story.

If you really wish to bring China into this then her is a thought Canada is the US's largest supplier by far, it exports are a mix of refined, semi-refined and crude almost all exported to refineries owned by Canadian subsidiaries in the US just like Venezuela.

For either country to make the most of their oil revenue they need these refining facilities to be local at the place of sale, do you think China will let either country set up independent refining facilities there (and not joint government controlled ventures)? Answer to that is no seeing the China deal is based on a joint venture!

And How long would it take to set up those facilities?

One more thing, I guess you have little knowledge of Canada and where the majority of the oil is, the price would have to be at least 3 times what it is now perhaps more to make it profitable to export to China, direct land pipelines to the US versus creating a pipeline through the BC Rockies and building oil port facilities somewhere on the west-coast.

Venezuela's economy is virtually bankrupt and it has taken heavy hit due to bad investments and the $20 billion loan was just so it wouldn't default on other things and is already spent, so now they are supplying 100,000 barrels a day with no payments coming in for 10 years and this is on top of the already $8 billion loan Venezuela received previously to which they are repaying by sending 460,000 barrels of oil a day.

All this is to develop "potential" oil fields that will not generate any revenue for years.

Read the fine print on these deals and you will see that no income for Venezuela will be generated anytime soon and for the moment Venezuela is just accumulating more dept.

In contrast the US deal is a cash cow seeing Venezuela controls the entire sales chain from production right through to the end user, anyone with half a brain could tell you throwing that away is like throwing the baby out with the bath water.

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Cutting of the oil to the US means cutting off the oil to their own refineries located in the US and losing enormous amounts of income, the profits from crude oil is quite low its a volume business but the profits from refined product is a different story.

First, limbo, if you'll actually read the whole thread I was merely replying to another poster's assertion of the US to 'make up the supply of oil bought from Venezuela someplace else'.

I believe I only commented on such ludicrous comment :)

For either country to make the most of their oil revenue they need these refining facilities to be local at the place of sale, do you think China will let either country set up independent refining facilities there (and not joint government controlled ventures)? Answer to that is no seeing the China deal is based on a joint venture!

China doesn't like join ventures LOL People are certainly entitled to their opinions...

In contrast the US deal is a cash cow seeing Venezuela controls the entire sales chain from production right through to the end user, anyone with half a brain could tell you throwing that away is like throwing the baby out with the bath water.

Again, it's probably the case of agree to disagree. But in the end, that's just your own opinion. Let's not forget that the new China-Venezuela arrangement is only three months old-- it doesn't even have teeth (to use your baby analogy).

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Venezuela's economy is virtually bankrupt and it has taken heavy hit due to bad investments and the $20 billion loan was just so it wouldn't default on other things and is already spent, so now they are supplying 100,000 barrels a day with no payments coming in for 10 years and this is on top of the already $8 billion loan Venezuela received previously to which they are repaying by sending 460,000 barrels of oil a day.

Oh well, another nail on the coffin of anti-imperialists

(Encore un moment, monsieur LOL)

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@jruaustralia; Oui monsieur un autre commentaire!

Your point here? "China doesn't like join ventures LOL People are certainly entitled to their opinions..."

If I wasn't clear (not a native English person) is that Venezuela's US refining is wholly owned by "Petróleos de Venezuela, S.A." but any deal with China will be a joint venture, as it is now 60% Venezuela 40% China state oil company and depending on production quotas China can request an increase in its share.

It seems to me that right now Venezuela is its own master in regards to it oil that goes to the US but in the China case it is more subservient.

And the China deal is not only 3 months old just the latest part the actual start of this deal goes back to 2008.

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It seems to me that right now Venezuela is its own master in regards to it oil that goes to the US but in the China case it is more subservient.

Fair enough-- again, I prefer to agree to disagree on this one. Let's leave it at that :)

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Colombia amigos is the country next to Venezuela, Columbia??? Is that university out in NYC!! How many English speakers does it take to know the difference in spelling between the country, Colombia and the uni, Columbia???

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Wouldn't cutting off oil exports be the 'green thing' to do?

Why don't fans of Chavez ever castigate their hero for his role - he is basically a pusher - in contributing to America's supposedly unquenchable thirst for oil?

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