Is Venezuela about to collapse?

2009-02-09 15:41:15

#1

Kmar: Truth is my Bitch; +5,695|6904|132 and Bush

Venezuela’s state oil company is behind on billions in payments to private oil contractors from Oklahoma to Belarus, some of which have now stopped work, even as President Hugo Chavez funnels more oil revenue to social programs.

Petroleos de Venezuela SA, or PDVSA, says unpaid invoices jumped 39 percent in the first nine months of last year — reaching $7.86 billion in September. And that was when world oil was selling for $100 a barrel.

With prices plummeting by more than half, PDVSA is trying to renegotiate some contracts. But analysts say hardball tactics to reduce charges from crucial service providers could backfire by lowering Venezuela’s oil output. And foreign debt markets are reflecting jitters about Venezuela’s finances.

http://news.yahoo.com/s/ap/20090206/ap_ … uela_oil_1

Two rigs run by a Tulsa contractor have shut down and nine more controlled by the contractor will shut down by July unless Venezuela pays the bills.

The government planned for an average oil price of $60 a barrel in its 2009 budget, but the average price so far this year for Venezuela's thick crude was $36.16, Rodriguez said.

Xbone Stormsurgezz

2009-02-09 15:45:36

#2

Turquoise: O Canada; +1,596|6708|North Carolina

I'm a little confused here... I thought he nationalized all of Venezuela's oil?

2009-02-09 15:51:54

#3

Kmar: Truth is my Bitch; +5,695|6904|132 and Bush

Turquoise wrote:
I'm a little confused here... I thought he nationalized all of Venezuela's oil?

He did.. the control of it that is (kicking everyone else out). They still contract the work out, just like other non nationalized oil companies do.

They say they have enough in reserves to sustain them for awhile. If that is the case then their delinquency just doesn't make sense.

Xbone Stormsurgezz

2009-02-09 15:56:03

#4

Turquoise: O Canada; +1,596|6708|North Carolina

Well that kind of defeats the purpose of nationalizing it. If you're going to take governmental control over an oil supply you might as well set up a company like Saudi Aramco in Venezuela.

It sounds like Hugo is even more clueless than I originally assumed.

2009-02-09 16:03:17

#5

KEN-JENNINGS: I am all that is MOD!; +2,983|6935|949

Turquoise wrote:
Well that kind of defeats the purpose of nationalizing it. If you're going to take governmental control over an oil supply you might as well set up a company like Saudi Aramco in Venezuela.

It sounds like Hugo is even more clueless than I originally assumed.

It's the same thing many nations do - nationalize the oil field and pay an oil company to operate/extract the oil, as opposed to allowing oil companies to develop oil fields and make payments to the government.

Sounds like the main problem is that they overestimated the future cost of a barrel of oil. Sucks for them, but it's not like oil isn't going to be used anymore- they still have a commodity that people use and that companies will continue to harvest. A minor blip, and perhaps a future effect will be less cooperation between oil companies and the Chavez government.

2009-02-09 16:06:28

#6

Turquoise: O Canada; +1,596|6708|North Carolina

KEN-JENNINGS wrote:
Turquoise wrote:
Well that kind of defeats the purpose of nationalizing it. If you're going to take governmental control over an oil supply you might as well set up a company like Saudi Aramco in Venezuela.

It sounds like Hugo is even more clueless than I originally assumed.
It's the same thing many nations do - nationalize the oil field and pay an oil company to operate/extract the oil, as opposed to allowing oil companies to develop oil fields and make payments to the government.

Sounds like the main problem is that they overestimated the future cost of a barrel of oil. Sucks for them, but it's not like oil isn't going to be used anymore- they still have a commodity that people use and that companies will continue to harvest. A minor blip, and perhaps a future effect will be less cooperation between oil companies and the Chavez government.

Still, wouldn't it make more sense to just have the government run its own oil company without using contractors if you're going to nationalize it?

All nationalization does with subcontracting involved is increase bureaucratic costs.

2009-02-09 16:20:51

#7

Catbox: forgiveness; +505|7019

This is awful news... lol... I hope Chavez is ok?

Hey wait... i had an idea... we can send them a bailout check to jump start their economy...lol

Last edited by [TUF]Catbox (2009-02-09 16:25:15)

Love is the answer

2009-02-09 16:25:11

#8

ATG: Banned; +5,233|6832|Global Command

[TUF]Catbox wrote:
This is awful news... lol... I hope your wallet is ok after the collapse is reflected at the pump.

2009-02-09 16:25:41

#9

Turquoise: O Canada; +1,596|6708|North Carolina

Eh... We get more oil from Canada than from Venezuela.

2009-02-09 16:27:52

#10

Catbox: forgiveness; +505|7019

ATG wrote:
[TUF]Catbox wrote:
This is awful news... lol... I hope your wallet is ok after the collapse is reflected at the pump.

My wallet is fine... I walk to work and have a lot of money saved... I am still saddened by Hugo's situation though... I am quietly waiting for the aliens to pop out of the clouds and take my money and eat me whole...I heard this was going to happen on the internet...lol

Love is the answer

2009-02-09 18:20:31

#11

Kmar: Truth is my Bitch; +5,695|6904|132 and Bush

[TUF]Catbox wrote:
This is awful news... lol... I hope Chavez is ok?

Hey wait... i had an idea... we can send them a bailout check to jump start their economy...lol

An unstable South America is not what we want. I wouldn't lose any sleep over losing Chavez though.

Xbone Stormsurgezz

2009-02-10 03:28:05

#12

FEOS: Bellicose Yankee Air Pirate; +1,182|6714|'Murka

My heart is breaking for that kind-hearted man.

No...wait...that was just gas.

“Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.”
― Albert Einstein
Doing the popular thing is not always right. Doing the right thing is not always popular

2009-02-15 21:32:56

#13

Catbox: forgiveness; +505|7019

Chavez wins vote to scrap term limits in Venezuela.... Great News....
....
CARACAS, Venezuela – President Hugo Chavez won a referendum to eliminate term limits Sunday and vowed to remain in power for at least another decade to complete his socialist revolution. Opponents accepted defeat but said Chavez is becoming a dictator.

Fireworks exploded in the sky and caravans of supporters celebrated in the streets, waving red flags and honking horns. Thousands of people gathered outside Miraflores Palace, where the former paratroop commander appeared on a balcony to sing the national anthem and address the crowd.

"Those who voted 'yes' today voted for socialism, for revolution," Chavez said. He called the victory — which allows all public officials to run for re-election indefinitely — a mandate to speed his transformation of Venezuela into a socialist state.

http://news.yahoo.com/s/ap/20090216/ap_ … referendum

How long until the people revolt? Or will they?

Love is the answer

2009-02-16 01:31:46

#14

PureFodder: Member; +225|6588

[TUF]Catbox wrote:
Chavez wins vote to scrap term limits in Venezuela.... Great News....
....
CARACAS, Venezuela – President Hugo Chavez won a referendum to eliminate term limits Sunday and vowed to remain in power for at least another decade to complete his socialist revolution. Opponents accepted defeat but said Chavez is becoming a dictator.

Fireworks exploded in the sky and caravans of supporters celebrated in the streets, waving red flags and honking horns. Thousands of people gathered outside Miraflores Palace, where the former paratroop commander appeared on a balcony to sing the national anthem and address the crowd.

"Those who voted 'yes' today voted for socialism, for revolution," Chavez said. He called the victory — which allows all public officials to run for re-election indefinitely — a mandate to speed his transformation of Venezuela into a socialist state.

http://news.yahoo.com/s/ap/20090216/ap_ … referendum

How long until the people revolt? Or will they?

They don't need to revolt, they just have to vote for someone else next election. Venezuela is still a democracy.

2009-02-16 01:49:31

#15

rdx-fx: ...; +955|6894

Cut Chavez some slack.

"Hey! Check this out! We can run a massive budget surplus, afford all kinds of feel-good happy-voter programs, buy some new military toys, and some of those special voting machines! All we have to do is just forget to pay those pesky bills!

Chavez's revolution... That's a reference to a broken record player that keeps spinning and repeating the same senseless sounds over and over, right?

Last edited by rdx-fx (2009-02-16 02:03:31)

2009-02-16 02:29:31

#16

CameronPoe: Member; +2,925|6858

[TUF]Catbox wrote:
How long until the people revolt? Or will they?

If they did they would be imposing a dictatorship of the minority .... as opposed to the impending dictatorship of the majority....

2009-02-16 05:07:37

#17

Stubbee: Religions Hate Facts, Questions and Doubts; +223|7046|Reality

Breaking NEWS:
Robert Mugabe's brain cloned by radical Spanish speaking anarchists. It was revealed today that it was transplanted into an unknown Venezuelan man about 20 years ago.

The US economy is a giant Ponzi scheme. And 'to big to fail' is code speak for 'niahnahniahniahnah 99 percenters'

2009-02-16 05:52:19

#18

Varegg: Support fanatic :-); +2,206|7113|Nårvei

Am a little surpriced he pulled it off this time seeing as his mandate was turned down the last time, he has not achieved much for his own people the last 10 years ...

Wait behind the line ..............................................................

2009-02-16 07:10:54

#19

Mekstizzle: WALKER; +3,611|6924|London, England

Stubbee wrote:
Breaking NEWS:
Robert Mugabe's brain cloned by radical Spanish speaking anarchists. It was revealed today that it was transplanted into an unknown Venezuelan man about 20 years ago.

I don't get what the big deal is about term limits.

I can give you a few countries where major positions don't have term limits:

Japan
Singapore
Austria
Germany
Iceland
Italy
Switzerland
UNITED KINGDOM
Australia
Canada
India

...and now Venezuela

Except it's bad in Venezuela's case.....cos they're bad and...they're bad

2009-02-16 09:25:31

#20

Stubbee: Religions Hate Facts, Questions and Doubts; +223|7046|Reality

Mekstizzle wrote:
Stubbee wrote:
Breaking NEWS:
Robert Mugabe's brain cloned by radical Spanish speaking anarchists. It was revealed today that it was transplanted into an unknown Venezuelan man about 20 years ago.
I don't get what the big deal is about term limits.

I can give you a few countries where major positions don't have term limits:

Japan
Singapore
Austria
Germany
Iceland
Italy
Switzerland
UNITED KINGDOM
Australia
Canada
India

...and now Venezuela

Except it's bad in Venezuela's case.....cos they're bad and...they're bad

I don't have a problem with term limits either but the man's opinion of himself and his reforms reminds me the other guy. If he is doing such a good job why is their inflation at 30%? Dumbass (not you btw, him)

oh also don't think venezuela has the same type of government as those you bring up. Mostly parliamentary democracies while his is a republic.
Term limits don't have the same meaning for these types of governments

Last edited by Stubbee (2009-02-16 09:26:11)

The US economy is a giant Ponzi scheme. And 'to big to fail' is code speak for 'niahnahniahniahnah 99 percenters'

BF2S Forums Is Venezuela about to collapse?

Turquoise wrote:

Turquoise wrote:

KEN-JENNINGS wrote:

Turquoise wrote:

[TUF]Catbox wrote:

ATG wrote:

[TUF]Catbox wrote:

[TUF]Catbox wrote:

[TUF]Catbox wrote:

[TUF]Catbox wrote:

Stubbee wrote:

Mekstizzle wrote:

Stubbee wrote:

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