U.S. is biggest importer of Venezuelan oil. What now?

The U.S. will impose sanctions on Venezuela oil production and the EU is stopping Maduro from acquiring his gold stash.  Will the Majors go back into Venezuela?  Will Gauido be able to take control?  The state of the infrastructure of the Venezuelan oil fields will take a couple of years to clean up and attempt to bring production back to the 3 million bbls a day.  In the meantime, how high will oil prices go?  Or, will the market say ho hum.   

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(edited)

https://www.rigzone.com/news/wire/us_slaps_de_facto_oil_ban_on_venezuela-29-jan-2019-158025-article/?utm_source=GLOBAL_ENG&utm_medium=SM_FB&utm_campaigns=FANS

Sanctions...now what? Refineries on the coast rely on the heavier crude, so maybe Canada fills the gap if they can move it? So...what happens to prices now, any effect? How do the countries supporting Maduro react?

Edited by cbrasher1
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17 hours ago, JoMack said:

Will the Majors go back into Venezuela?

I don't know the answer to that question, but what I suspect is that the majors stopped getting paid long before they finally gave up and left,,, or were thrown out.  

I had a beer once with a guy who used to work for a major oil company in Venezuela,,, (he had switched jobs since, to work for a 2nd tier service company that flew workers offshore and to the remote oil fields via helicopter.)  The conversation was in 2017, I was fascinated that he worked in Venezuela.  We were two history buffs relating it all to the fall of Rome.  The details were juicy, but I digress.  His company had not been paid in years.   Let me repeat that for you, YEARS.  ...not 90 days, or ..120 days behind, but years, and they left with out ever being paid.  

So that happened, and as the saying goes, "once bitten, twice shy"

I thought it was concluded that heavy Canadian oil is not the same as Heavy Venezuelan and the refiners are not able to substitute, at least 100% substitute.  

 

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(edited)

EL PRESIDENTE MADURO

Will have a difficult time sending the  Heavy Orinoco Belt Crude elsewhere.

With the Gulf Coast refineries converted years ago to handle it, suddenly,to not have access, will cause major problemos.

Sending it to China, to pay down his debt there, might be an answer.

Refined products, will not be sent back to PDVSA's use, through their USA

operartion Citgo USA.

Some say sending it to EU, UK, or other ports of call may be an option.

Since he shipped tons of gold to Turkey, has his Chief Henchman guarding cash registers in Zurich, he should pull out, wipe off and leave NOW, while he still can, with a full sack.

As most of you already know, I was there the last time this happened in 1958.

"PJ" El Presidente Jimenez, deposed the dictator before him in basically a

"Bloodless Coup".......(Then like now, in Caracas the young people and students were in the streets, resisting "LaGuardia" with bricks & iron pipes.)

Batista, gave him sanctuary in Cuba, before Fidel came down from the mountains.

This has been brewing a long time. The people have had enough.

The Nacional Assembly President, is a young courageous man ,whom has the young people at his side.

The Defence Minister, and the U.S. Attache have defected to the New President.

It is only a matter of time, before the military follows suit.

I look forward, before the year is out, to re-establishing my families HQ there,

In a free Caracas.

~ !VENEZUELA SI !     MADURO NO! ~

~ !VIVA LA REVOLUCION! ~

 

 

Edited by Glenn Ellis
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(edited)

On 1/28/2019 at 2:58 PM, JoMack said:

In the meantime, how high will oil prices go?

I believe there will be a strong move toward the $60 and $70 areas for WTI and Brent respectively. The political landscape supports an upward trajectory (especially if trade talks go well) and an inverted head and shoulders has developed on the long term chart with a cup and handle pattern on the weekly.  

Edited by Delton Witte
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On ‎1‎/‎28‎/‎2019 at 2:58 PM, JoMack said:

The U.S. will impose sanctions on Venezuela oil production and the EU is stopping Maduro from acquiring his gold stash.  Will the Majors go back into Venezuela?  Will Gauido be able to take control?  The state of the infrastructure of the Venezuelan oil fields will take a couple of years to clean up and attempt to bring production back to the 3 million bbls a day.  In the meantime, how high will oil prices go?  Or, will the market say ho hum.   

Speaking of gold stash

https://www.foxnews.com/world/russian-plane-in-venezuela-takes-20-tons-of-gold-flies-to-unknown-location-lawmaker-claims

 

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