Is Venezuela going to become Trump's Wag the Dog escape exit?

katzgar said:
nope, Bolton wants their oil... https://crooksandliars.com/2019/01/john-bolton-says-ultimate-goal-venezuela
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not "wants their oil" gawd you are so dense. This is what he said:
"It would make a difference if we could have American companies produce the oil in Venezuela. It would be good for Venezuela and the people of the United States."
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meaning US technology / expertise/ capital investment.

How Venezuela Ruined Its Oil Industry
https://www.forbes.com/sites/rrapier/2017/05/07/how-venezuela-ruined-its-oil-industry/#2f5963907399
During the Venezuelan general strike of 2002–2003, Chávez fired 19,000 employees of the state oil company Petróleos de Venezuela, S.A. (PDVSA) and replaced them with employees loyal to his government.

This eliminated a tremendous amount of experience from Venezuela's oil industry. Most of Venezuela's proved oil reserves consists of extra-heavy crude oil in the Orinoco Belt.

Because this oil is particularly challenging to produce, Venezuela invited international oil companies into the country to participate in the development of these reserves. Companies like ExxonMobil, BP, Chevron, Total and ConocoPhillips invested billions of dollars in technology and infrastructure to turn the extra-heavy oil into crude oil exports.

What most people do not understand about the oil industry is that it is extremely capital intensive. When oil prices rise, oil companies may indeed reap billions of dollars in profits. But reaping that reward required billions of dollars in capital investments, and if oil prices decline it can quickly turn into billions of dollars of losses. This is the key to understanding what has gone wrong in Venezuela.

The Government Gets Greedy

In 2007 oil prices were on the rise, and the Chávez government sought more revenue as the investments made by the international oil companies began to pay off. Venezuela demanded changes to the agreements made by the international oil companies that would give PDVSA majority control of the projects. Total, Chevron, Statoil and BP agreed and retained minority interests in their Venezuelan projects. ExxonMobil and ConocoPhillips refused, and as a result, their assets were expropriated. (A World Bank arbitration panel has ruled against Venezuela in both expropriation cases, but the country continues to appeal the decisions).

So there are primarily two related causes that have resulted in the steep decline of Venezuela's oil production, despite the sharp increase in the country's proved reserves. The first is the removal of expertise required to develop the country's heavy oil. This started with the firing of PDVSA employees in 2003 and continued with pushing international expertise out of the country in 2007.

Second, the Chávez government failed to appreciate the level of capital expenditures required to continue developing the country's oil. This was in no small part due to inexperience among the Chávez loyalists that were now running PDVSA, but it may not have mattered in any case. When oil prices were high, Chávez saw billions of dollars that could be siphoned to fund the country's social programs, and that's exactly what he did. But he failed to reinvest adequately in this capital-intensive industry.

I explicitly warned about this in an article I wrote in 2007:
 
PostmodernProphet said:
escape from what?.....
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Let's see, his shutdown debacle, boxed I'm with his Wall fixation, Mueller presence, approaching debt ceiling crisis, ratings in the toilet, etc., is that enough for you?

He definitely needs a new distraction, and nothing works better than fabricating foreign "threats"
 
noise said:
not "wants their oil" gawd you are so dense. This is what he said:

meaning US technology / expertise/ capital investment.

How Venezuela Ruined Its Oil Industry
https://www.forbes.com/sites/rrapier/2017/05/07/how-venezuela-ruined-its-oil-industry/#2f5963907399
During the Venezuelan general strike of 2002–2003, Chávez fired 19,000 employees of the state oil company Petróleos de Venezuela, S.A. (PDVSA) and replaced them with employees loyal to his government.

This eliminated a tremendous amount of experience from Venezuela's oil industry. Most of Venezuela's proved oil reserves consists of extra-heavy crude oil in the Orinoco Belt.

Because this oil is particularly challenging to produce, Venezuela invited international oil companies into the country to participate in the development of these reserves. Companies like ExxonMobil, BP, Chevron, Total and ConocoPhillips invested billions of dollars in technology and infrastructure to turn the extra-heavy oil into crude oil exports.

What most people do not understand about the oil industry is that it is extremely capital intensive. When oil prices rise, oil companies may indeed reap billions of dollars in profits. But reaping that reward required billions of dollars in capital investments, and if oil prices decline it can quickly turn into billions of dollars of losses. This is the key to understanding what has gone wrong in Venezuela.

The Government Gets Greedy

In 2007 oil prices were on the rise, and the Chávez government sought more revenue as the investments made by the international oil companies began to pay off. Venezuela demanded changes to the agreements made by the international oil companies that would give PDVSA majority control of the projects. Total, Chevron, Statoil and BP agreed and retained minority interests in their Venezuelan projects. ExxonMobil and ConocoPhillips refused, and as a result, their assets were expropriated. (A World Bank arbitration panel has ruled against Venezuela in both expropriation cases, but the country continues to appeal the decisions).

So there are primarily two related causes that have resulted in the steep decline of Venezuela's oil production, despite the sharp increase in the country's proved reserves. The first is the removal of expertise required to develop the country's heavy oil. This started with the firing of PDVSA employees in 2003 and continued with pushing international expertise out of the country in 2007.

Second, the Chávez government failed to appreciate the level of capital expenditures required to continue developing the country's oil. This was in no small part due to inexperience among the Chávez loyalists that were now running PDVSA, but it may not have mattered in any case. When oil prices were high, Chávez saw billions of dollars that could be siphoned to fund the country's social programs, and that's exactly what he did. But he failed to reinvest adequately in this capital-intensive industry.

I explicitly warned about this in an article I wrote in 2007:
Click to expand...


Your own quote has Bolton talking empire
 
archives said:
Let's see, his shutdown debacle, boxed I'm with his Wall fixation, Mueller presence, approaching debt ceiling crisis, ratings in the toilet, etc., is that enough for you?

He definitely needs a new distraction, and nothing works better than fabricating foreign "threats"
Click to expand...

Is Trump paying CNN to run propaganda for him?
 
Remember when the republican party was screaming that Clinton going after OBL was a wag the dog for a sex scandal


are the republicans going to claim Venenzuela has WMDs now
 
The US did not create their 1.3M% inflation in 2018. The government limiting foreign currencies and outside trade is the root of all their problems. Why the hell invest any money there if you are limited to $400 per month in returns.
 
archives said:
Let's see, his shutdown debacle, boxed I'm with his Wall fixation, Mueller presence, approaching debt ceiling crisis, ratings in the toilet, etc., is that enough for you?

He definitely needs a new distraction, and nothing works better than fabricating foreign "threats"
Click to expand...

just needs to wait for the demmycrats to start negotiating over the next three weeks.......do you think they will?......
 
PostmodernProphet said:
just needs to wait for the demmycrats to start negotiating over the next three weeks.......do you think they will?......
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Of course they will, already have passed legislation addressing the problem, all Mitch has to do is debate it on the Senate floor, none of it includes Trump's "big, beautiful, thirty foot high, concrete reinforced Wall," so the ball is in Donald's hands now
 
Maduro must never surrender! If the fascist invade, restart to the jungle and fight them from there! The imperialist army will bogged down for decades by the passionate Venezulan people defending their liberty!
 
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