Venezuela troubles (currency, economy and potential FAFO)

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June 1 (Reuters) - Trinidad and Tobago is requesting the U.S. government amend the terms of a license authorizing the joint development of a promising offshore gas field with Venezuela, the Caribbean nation's energy minister said on Thursday.

The United States in January issued a 2-year authorization for Trinidad and a group of companies including Venezuelan state-run oil firm PDVSA and Anglo-Dutch Shell (SHEL.L) to revive a dormant project that could help Trinidad boost gas processing and exports to its neighbors.

 
But we can't drill.

Follow the money. Corn Pop is so far gone he's insensible, he doesn't know what he's being made to sign; but the puppetmasters are surely getting a cut of the action.
 
CARACAS (Reuters) -Iran and Venezuela want to increase bilateral trade to $20 billion, up from $3 billion, Iranian President Ebrahim Raisi said on Monday during a visit to Caracas.

During the visit the two countries signed a memorandum of understanding to expand cooperation in petrochemicals with a view to carrying out joint projects, building on their already-close cooperation in oil.

 
Will Venezuela drag Iran down or will Iran invade Venezuela?
 
Venezuela's oil industry is a total mess. It's filled with political appointments at top posts. Competency is not rewarded - political connections are.
 

Venezuela pursues debt settlement with Crystallex, Conoco, bondholders​

HOUSTON, June 30 (Reuters) - Negotiators representing Venezuela have held settlement talks with bondholders and creditors owed billions of dollars from defaults and expropriation claims, the head of a board supervising the country's foreign oil assets told Reuters.

The talks have gained urgency as a federal court judge is to decide next month whether to kick off an auction of shares that could lead to the break-up of Citgo Petroleum, Venezuela's most prominent overseas asset. The U.S. has for years shielded Citgo from seizure under a license that will expire next month if not renewed.

Some $2.6 billion in court-approved claims from Crystallex International, ConocoPhillips, Siemens Energy and Red Tree Investments could be applied to auction proceeds.

More:

 
LONDON, June 30 (Reuters) - The Venezuelan Central Bank (BCV) board controlled by the government of President Nicolas Maduro on Friday lost its latest appeal over $1.95 billion of the country's gold reserves held in the Bank of England's underground vaults.


Sal's take................

 
Venezuela's oil industry is a total mess. It's filled with political appointments at top posts. Competency is not rewarded - political connections are.



Throw in being gay or transgender and it sounds a lot like our government now.


I give us five or six years before we start looking just like Venezuela. We're making all the right moves to get there.



 
July 19 (Reuters) - The U.S. on Wednesday approved a three-month extension to a license protecting Citgo Petroleum from creditors seeking to seize the oil refiner's assets.

The document comes as a negotiation team representing Venezuela progresses in talks with bondholders and creditors with arbitration awards from expropriation claims, a move to avoid a breakup of Venezuela's most important foreign asset.

Creditors have flocked to U.S. courts to press claims on over $20 billion, almost double the value of Citgo Petroleum, which operates an 807,000-barrel-per-day oil refining network in the United States.

 
This one's a little different. Interesting story.........didn't want to start a new thread.

Inside prison run by gang with swimming pool, mini-zoo and even its own nightclub​

By day, Venezuelans could play baseball, visit zoos with horses, pigs and flamingos, and saunter round market streets selling food and wares as their children played in parks.

By night, they could drink beer, place bets and go nightclubbing. But this was not a holiday resort or town. It was one of Venezuela’s most notorious prisons controlled by the powerful Tren de Aragua gang.

It was this compound where 11,000 security officers took ‘total control’ this week by clearing the prison, where 300 families lived, with weapons and armoured vehicles.

The prison was used as the headquarters of the Tren de Aragua, a gang running a criminal enterprise across several Latin American countries including Colombia, Chile and Peru.

More:

 
  • The "dark fleet" employs various techniques to hide the identity of each tanker, ensuring the transport of U.S.-sanctioned oil remains untracked.
  • Over half of PDVSA's own tankers are inoperable, leading Venezuela to lean on Iran's fleet for crucial oil exports, primarily to Asia.
  • Despite sanctions, Venezuela's oil exports have grown, with China as a major recipient of the oil which is often branded as Malaysian oil.
 
WASHINGTON, Oct 18 (Reuters) – U.S. President Joe Biden’s administration is easing sanctions on Venezuela’s oil and gas sector almost immediately in response to a 2024 election deal reached between the Venezuelan government and the country’s opposition, a senior U.S. State Department official told Reuters on Wednesday.

 

I'm guessing their election will be another shit show and the sanctions will be reapplied shortly thereafter.
 
 
But we can't drill.

Follow the money. Corn Pop is so far gone he's insensible, he doesn't know what he's being made to sign; but the puppetmasters are surely getting a cut of the action.
They're getting damned obvious about it.
 
CARACAS, Nov 27 (Reuters) - The Venezuela Creditors Committee (VCC) on Monday said a court in New York last week validated an agreement that extended the legal term on unpaid Venezuelan bonds until December 2028.

Venezuelan opposition lawmakers in August approved extending the validity of Venezuelan bonds and those of the country's state-owned oil company PDVSA for five more years to reduce risks of more lawsuits and to renegotiate with bondholders.

 
So there seems to be some trouble brewing in Venezuela:





Venezuela massing troops near the border. They might fuck around and if they do, I expect they are going to find out.
 
That would drag the US into another war using Colombia as a proxy.
 
Brazil "has intensified defensive actions" along its northern border as it monitors a territorial dispute between its neighbors, Guyana and Venezuela, the country's defense ministry said on Wednesday.
...

 


Looking more and more like this is going to go hot.
 
Oil is very much like gold in the eyes of nations. It will cause war. Again.
 
CARACAS/GEORGETOWN, Dec 3 (Reuters) - Venezuelans will vote on Sunday in a referendum backed by President Nicolas Maduro's government over a potentially oil-rich territory that is the subject of a long-running border dispute with Guyana.

The five-question referendum includes a question rejecting International Court of Justice (ICJ) jurisdiction to decide to which country the territory around the Esequibo river belongs. Some political and security analysts have called the referendum a show of strength by Maduro and a test of support for his government ahead of a planned 2024 presidential election.

 
I betcha both sides have military weapons made in the USA.
 
Sounds like it is new access to an existing field that Venezula has been exploiting for decades exclusively.
 
Sounds like it is new access to an existing field that Venezula has been exploiting for decades exclusively.

No.
  1. The Essequibo region has been controlled/occupied by Guyana for over 100 years
  2. Venezuela was party to an arbitration agreement in 1899 ceding the region to Guyana
  3. ExxonMobile discovered huge oil deposits in the region in 2015
  4. Guyana was just starting to make commercial agreements with oil companies for rights to the oil a few months ago
  5. Venezuela suddenly decides the 100+ year old arbitration is not valid and they need to assert ownership of the region
 


That report has a good summary of the situation.
 

 
In democratic vote, Russians approve of reclaiming Alaska

Palestinians vote to reclaim ..........

Chinese vote .....

what could possibly go wrong ?
 
Venezuela already has huge oil reserves, but cannot exploit them efficiently because of politics. Adding more reserves will do no good, especially sparking a regional war.
 
Last edited:
HOUSTON, Dec 4 (Reuters) - Venezuela's oil exports remained almost unchanged in November at 651,000 barrels per day (bpd) even as an easing of U.S. sanctions is now allowing sales to trading houses, according to shipping and tanker tracking data.

Washington in October temporarily lifted oil sanctions on the country as a way to encourage a presidential election in 2024, which prompted spot sales of Venezuelan crude and fuel oil to traders mostly bound for China.

 

https://www.msn.com/en-us/news/world/venezuela-moves-to-claim-guyana-controlled-region/ar-AA1l5NdI

The population of Guyana is reported to be 800,000. The population of the disputed Essequibo region is reported to be around 130,000. That's a small city (like Pearland, TX) around where I live. I can't imagine their defense forces as being very formidable.
 
DYODD with this.

Following Sunday’s referendum, Venezuela’s Maduro government de facto “annexes” the oil-rich Essequibo region. Guyana calls for help from friends, including US Southern Command. Military exercises are already under way.

Three and a half weeks ago, we warned that the next major geopolitical flash point in this year of living dangerously could be in Washington’s “backyard” (or as the Biden Administration likes to call it, front yard). Sad to say, it looks like we were right. Like most geopolitical flash points, the region affected, Essequibo (or Guayana Esequiba), boasts a wealth of energy and mineral resources. In 2015, a consortium of energy firms led by Exxon Mobil discovered huge deposits of oil in the region’s disputed waters — and what’s more of the sweet crude variety that is easiest to refine, commanding the highest price on the global market.

In doing so, they reignited a diplomatic conflict that has been blowing hot and cold for the best part of the last two centuries. Essequibo has been administered by the former British colony of Guyana, of which it constitutes more than two-thirds of its territory and hosts 125,000 of Guyana’s 800,000 citizens, since 1899, when its frontiers were defined by an arbitration panel in Paris. Venezuela eventually accepted the ruling, albeit grudgingly, until 1949, when one of the US lawyers who had defended its case had a memorandum published posthumously that strongly suggested that the ruling had been rigged in Britain’s favour.

Venezuela Takes a Step Closer to War With US

 
America answers the call?

also:

UN security council isn't going to do shit with China and Russia in Venezuela's corner.
 
We could get a few guys from the VFW and Elks Club and take on Venezuela. Would be a good opportunity for the USA to clean up and unite South America with contributing forces from Colombia, Brazil and Argentina.

The whole thing smells like China and Russia instigating it. Don'tvforget all the recent border jumpers that cancause havoc in the US, but they can be shot as spies.
 
... The whole thing smells like China and Russia instigating it. ...
From what I have read, it seems like Maduro is trying to whip up some nationalist fever ahead of elections to distract people from their economic woes. That said, I'm sure he received encouragement from those quarters. It'll be telling to see what China and Russia have to say via their spots on the UN security council...
 
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