Connect with us

Latest

Analysis

News

Why Venezuela’s People Are Suffering

What’s dooming Venezuela isn’t merely a local situation, but instead is global and environmental.

Eric Zuesse

Published

on

599 Views

Originally posted at strategic-culture.org:


INTRODUCTION

The case that will be documented here is that Venezuela’s people are suffering from a tragic national situation which actually cannot be reversed by anything that’s within the power of Venezuela’s Government to do or to block. In order to understand this very unfortunate reality (if one wants to understand it), one must first understand the relevant parts of the broader situation in the world that affects Venezuela. What’s dooming the country isn’t merely a local situation, but instead is global and environmental. It also is economic, pertaining to the role that Venezuela is playing in the global economy. But the economic factor is definitely not of the kind that it’s commonly assumed and alleged to be. It is instead very different.

Here, this very different reality will be both described and documented (instead of just founded upon assumptions — many of which are false — such as the standard, basically local, economic ‘explanation’ of Venezuela’s troubles is, which focuses on Venezuela’s socialism, or the economy’s being not sufficiently capitalist).

What it all comes down to, stated in its briefest terms, is that no nation can do anything but lose money by selling the world’s dirtiest oil, tar-sands oil, which costs $100+ to clean and produce, into a global oil market that’s paying less than $100 (currently around $65) per barrel. Venezuela was able to sell it profitably when oil-prices were high, but is getting crushed now, because its oil is no longer profitable to produce and sell. But 95% of Venezuela’s export-earnings come from oil. Unless and until oil-prices are again above $100 (which probably won’t happen again, except perhaps for very brief periods), Venezuela is doomed. Venezuela’s only chance to diversify its economy away from “the natural resources curse” (from which it especially suffers) was long ago, decades before the current Government came into power. That chance was missed. This ship is now sinking, and no one can save it. (And the US Government and its allies have no actual interest in saving it, but only in exploiting it, parasitically.)

So, here the real history and context for what is happening in and to Venezuela will be presented, and the reader will be able easily to verify any detail of it (by means of the links) — on one’s own, (not accepting anything on mere ‘authority’, which, in such a politically charged matter as this, is almost invariably propaganda). The reader can verify any allegation here simply by clicking onto the given link, at any point in the presentation that might seem to be questionable.

These links are directly to the items of evidence, in the specific case of: why Venezuela’s people are suffering.

Here is that case — the realistic case, without any propaganda, but with only credible news reports and source-documents as constituting its basis — regarding this question.

THE CASE

The two lands that produce the world’s highest-cost-to-produce oil are Canada and Venezuela. Both extract their oil overwhelmingly from tar-sands, which is the dirtiest of all oil and thus (by far) the costliest to refine. (Thus, it’s called “extra-heavy crude”, and that is the least desirable type. It’s also the type that, in a global-warming world, should remain in the ground, never be burned at all, as will also be explained here.)

An accurate summary statement in Wikipedia is that, “With present technology, the extraction and refining of heavy oils and oil sands generates as much as three times the total CO2 emissions compared to conventional oil,[20] primarily driven by the extra energy consumption of the extraction process.” That reference at “[20]” also states: “As the price of oil rises and as conventional hydrocarbon resources become scarcer, increased exploration and production activity is occurring in heavy oil, tar sands, and bitumen deposits. While these contribute significantly to the global energy …, they also contribute a greater share to… the detriment of the global environment.” (That’s referring to “a greater share” of “detriment” than normal crude does.) As another source phrased this matter in more explicit terms: “85 gallons of water, two tons of soil, 700-1200 cubic feet of natural gas, and 170 pounds of greenhouse gases make one barrel of crude oil” from tar-sands. That oil is simply not usable as-is to go into refining, like, for example, the standard Brent crude is. Furthermore, to produce that barrel of tar-sands-derived oil requires also the production of tons of sheer waste, none of which is left behind from producing normal oil. The cost of dealing with that waste is not factored into the cost of the barrels of oil. For examples, the future “impact upon water supplies,” and that “this water is polluted by toxic substances,” are not counted in. Therefore, the full cost of such oil has never been calculated. And yet, even so, everyone recognizes that tar-sands-derived oils are the costliest to produce.

On 25 January 2013, HSBC Global Research issued a landmark report, “Oil & Carbon Revisited: Value at risk from ‘unburnable’ reserves”. It defined the key concept of “Unburnable reserves: The IEA’s World Energy Outlook (2012 edition) estimated that in order to have a 50% chance of limiting the rise in global temperatures to 2ºC, only a third of current fossil fuel reserves can be burned before 2050. The balance could be regarded as ‘unburnable’.”

The oil in Canada and in Venezuela is the world’s least burnable, the most “heavy,” and therefore it’s not only the costliest to produce, but it’s also the worst environmentally. There is consequently increasing pressure upon large investment funds such as Harvard’s 39-billion-dollar endowment fund, to disinvest in fossil fuels. Because of interlocked boards of directors or trustees, and the needs that such ‘charities’ have to appeal to wealthy donors, these public pressures are often (as in Harvard’s case) ignored, but the movement toward divestment is gradually gaining strength in the less corrupt investment funds.

On 13 December 2018, the environmental organization 350.org headlined “Landmark fossil fuel divestment reached! 1000+ institutions are withdrawing investments from coal, oil and gas companies”, and announced:

The 1000th institution to divest was the Caisse des dépôts et consignations (CDC), which manages France’s public sector pensions, savings, and investments worth ˆ173 billion (USD$196 billion). It recently announced that from 2019 it will no longer invest in companies that make more than 10% of their business from coal – this implies that the top 200 companies in the coal-industry are now effectively blacklisted. …

On the momentum for divestment since 2013 – Nicolas Haeringer, an organiser who supports divestment groups globally, at 350.org said:

“This is a moral movement as well as a financial one. Just five years ago we had 181 divestment commitments and USD$50 billion shifted away from polluting industries and today we’re over 1000 and approaching USD$8 trillion dollars.”

This has already helped to drive many coal companies out of business. Though coal-mine owners and employees might lose from that, the entire world gains vastly more from it. Such a transition is called “progress.” Transition in the opposite direction — toward more bad than good — is called “regress,” or, simply, “harm.” Some people call it “conservatism,” but whatever it is, certainly isn’t progress. Not in any way. But that’s what the US Government and the Canadian Government want: extreme conservatism — not conservation. And they view Venezuela’s tar-sands oil as being a prize that they could profit from if Venezuela’s Government could be ‘persuaded’ to reduce their environmental regulations on extracting it. However, in 2012, Venezuela strengthened, instead of weakened, its environmental laws. That strengthened the motivation for the US and Canada to take over Venezuela. Hugo Chavez died in 2013, and Nicolás Maduro replaced him. Then, in 2016, Maduro instituted a new policy, to weaken environmental enforcement in Venezuela. Perhaps he was hoping that this would reduce the US-and-allied efforts to overthrow him. Venezuela’s economy was already on the ropes. The US continued its efforts to overthrow Maduro. Now desperate, he started selling off 12% of the land to international mining companies. Environmental enforcement at PDVSA also plunged, and on 24 November 2018, Bloomberg News bannered “Venezuela Is Leaking Oil Everywhere”. Apparently, the weaker Maduro gets, the worse he becomes. He had entered a doomed office as the president, and seems willing to do anything not to drown in it. Apparently, the weaker he gets, the more that US-allied billionaires want to take over the country, entirely on their own terms. It’ll be like what had already happened in Greece, when the Syriza Party there capitulated to the international financial firms in 2015, and the Government stripped pensions, education, social services, etc., and privatized the infrastructure. But the path toward that end is quite different in Venezuela.

With the world’s increasing move toward renewables, the disinvestment in oil companies will increasingly be targeted toward selling the stock in the ones that have invested the most in oil fields in Canada and Venezuela. However, the situation is radically different for Venezuela than it is for Canada. Here is why:

The biggest market for Canadian oil is just next door, the United States. Most of the oil that’s imported into the US comes from Canada. And, because most of the oil companies that are producing oil in Canada are US owned or allied (such as in UK), the US Government isn’t sanctioning Canada and trying to bring its Government down by reducing Canada’s oil-sales via sanctions, such as is the case with regard to Venezuela’s oil-sales. The US Government doesn’t need to do that in order for America’s corporations to become enabled to sell the oil that comes from Canada: they’re already selling that oil, and Canada’s Government (as well as America’s Government) is already helping America’s companies to do this. America’s and Canada’s aristocracies are allied — not only with Venezuela’s aristocracy (which wants to replace Venezuela’s existing Government), but also with each others’ aristocracy.

Furthermore, unlike Venezuela, Canada isn’t nearly 100% dependent upon its oil-sales in order to support its economy, such as Venezuela tragically is. Venezuela receives around 95% of its export-income from its oil. That’s ridiculous and, for geostrategic and geoeconomic reasons, should never have been tolerated by Venezuela’s Government, but it nonetheless has been tolerated by them — and, for many decades, not only by Venezuela’s present Government. Indeed, Oil&Gas Journal headlined on 8 February 2010, “All about Orinoco” and reported that there had been “early efforts to produce heavy crude from the [Orinoco] belt” and these efforts “led PDVSA predecessors to output by the early 1980s of 93,000 b/d.” Furthermore, “Petroleos de Venezuela SA estimated 1.18 trillion bbl of oil in place in the Orinoco in 1987 and revised that in 2006 to a median of 1.3 trillion bbl, a maximum of 1.4 trillion bbl, and a minimum of 900 billion bbl.”

At that time, Richard Turcotte, of Peak Oil Matters, warned about this report, by headlining “A Look at Venezuela”, and pointing out that:

Unlike the light sweet crude oil produced by the US and the light oil which has made Saudi Arabia such a force, the Orinoco oil is “heavy oil” found in oil sands — similar in characteristics to the tar sands bitumen found in Alberta, Canada. (See my prior post here.) The Venezuela oil is thus much harder to extract and refine, making it more costly. Significant investments of time and money are required to provide adequate refinery capabilities. Needless to say, extracting this heavy oil is a much more energy-and time-intensive effort than is the process for extracting the more familiar light crude. It is not anyone’s answer in the next few years.

Lead researcher and USGS geologist Chris Schenk admitted that their report is not asserting that the “technically recoverable” oil is in fact “economically recoverable.” That’s a significant distinction, and one that needs to be emphasized. All the presumed underground reserves in the world won’t mean much if it makes no sense to invest the time, effort, and money to try and extract them.

The USGS nonetheless estimates that a stunning 40 – 45% of that resource will be ultimately recoverable. One prominent geologist (and a former board member of Petroleos de Venezuela SA — Venezuela’s state oil company) is already on record as doubting anywhere near that amount can be recovered, and stated that much of what might actually be recoverable would in fact be too expensive to produce. 

Perhaps Venezuela’s President Hugo Chavez and his predecessors were thinking that if the US Government says that this oil is an asset, then it is reasonable to consider it to be an asset; but if the US Government was instead merely aiming to get Venezuelans to think that it’s an asset so as to keep that country accepting its existing oil-monoeconomy (its over-dependence upon oil), then ultimately as the disappointment hits when the Venezuelan people experience the poverty after having hoped and tried to develop that ‘asset’, the US Government will become welcomed in, to take over Venezuela’s failing Government. Anyway, that would be a conceivable reason why the US Government would be promoting the ‘economic potential’ of the Orinoco belt. The aristocracy’s agents (in this case the petroleum industry) tend to be very clear-eyed about what’s of benefit to their paymasters. For whatever reason, the actual fact — that this oil was no asset — has remained hidden from the Venezuelan public. It still isn’t publicly acknowledged by Venezuela’s Government. Nor is it publicly recognized by America’s.

So, this tragic error (of presuming that tar-sands oil should be developed) goes back even to well before the time of Hugo Chavez. Moreover, it’s worth pointing out that the actual source of the ‘error’ is the petroleum industry itself, which, like the tobacco companies before it, constantly propagandized for increased production and sales, regardless of what the science says. A good example of that propaganda is the Editorial in Oil&Gas Journal on 24 January 2019, headlining “Costs, energy needs discredit ‘keep it in the ground’ agenda”. It says: “Preemptive opposition to oil and gas projects by ‘keep it in the ground’ activists promises needless hardship in two broad areas.” This is a denial of the entire concept of “unburnable reserves.” They want, instead, to burn it all — and even to keep prospecting to find yet more oil and gas (at this time of already greatly excessive inventories of cleaner reserves that should be burned before any of Canada’s or Venezuela’s filth is). They could lay off their entire teams of oil-explorers, who are wasting their time to find yet more dirty energy sources that won’t ever need to be used by anybody. Either these people are stupid and insane, or else they are psychopaths who care only about keeping their existing jobs and don’t care at all about the world that future generations will be experiencing. If their children knew, then what would they think of what their parents had done to the world that they will be living in?

Consequently (perhaps after — for whatever reason — listening too much to self-interested advisors), Venezuela’s Government has allowed itself to become trapped by its addiction to selling its extraordinarily filthy oil. There was no Governmental demand, no sufficient priority placed upon Venezuelan firms, for them to diversify the economy away from petroleum. Neither the present Government, nor any previous Government of Venezuela, did.

Hugo Chavez and Nicolás Maduro didn’t create this problem; but, now, and especially on Maduro’s watch, the oil-market transformations that result from the global-warming phenomenon are accelerating; and, unlike Canada, which is part of the US empire, Venezuela isn’t receiving US Government protection of its investors, and so there is no helping hand from the US Government (i.e., from America’s aristocracy) to assist Venezuela’s oil sales (such as the US does provide regarding Canada). There is, instead, to the contrary — as Venezuela’s Government has become weaker and weaker, and has less and less public support while global oil prices have plummeted — the grabbing hand, of both the US and Canadian Governments, to take over Venezuela’s Government, whose biggest sin, actually, was to have left itself open to such a take-over, by its having failed to diversify its economy away from the country’s doomed, and dooming, extraordinarily costly-to-refine, and undesirable to refine, oil. It’s now just a coffin in the ground, but it’s nonetheless still the source of virtually all of Venezuela’s export sales. No government could sustain supporting such a zombie. It’s a deadweight that’s dragging Venezuela down and economically suffocating all Venezuelans. And the documentation that this situation exists is incontrovertible:

The current WTO report on Venezuela indicates that 96.9% of the country’s exports are of “Fuels and mining products,” and that over 98% of this 96.9% consists of oils. Also shown is that the biggest five importers from Venezuela account for only 1.9% of Venezuela’s exports, and therefore all other countries account for 98.1%. So, when Venezuela loses its US market, that would mean loss of only 0.6% of its total export market.

However, America’s sanctions will additionally cause some US vassal nations such as in Europe to stop importing from Venezuela. So, Maduro is very vulnerable, indeed. Diversifying the markets (to that 98.1%) isn’t what was needed by Venezuelans; diversifying the economy was; and neither he nor his predecessors did any of that.

On February 2018, Petroleum Science headlined “Analysis of Venezuela’s oil-oriented economy: from the perspective of entropy” and reported that, “the current breakeven price has achieved to over $100/bbl in Venezuela.” Right now, oil is selling at around $65 per barrel. So, how can Venezuela make money selling its $100+ oil into the global $65 oil market? It’s just not possible, at least not sustainably. The Petroleum Science article therefore said that “it is unwise for Venezuela to count on selling raw oil to support the country’s economy,” because any per-barrel price that’s lower than Venezuela’s $100+ per barrel production cost will produce a loss on the sale of that barrel of oil, and because there will be very few if any future days when the per-barrel oil-price will again be above $100. The more that the world cuts back on petroleum and increases non-carbon energy-sources, the lower that the price of oil will become. And the more that investment funds steer clear of high-carbon firms, the lower the corporate stock of those companies will sink in value. Both investors and consumers are therefore going to be turning away from them.

When global oil prices were high, Venezuela could sell even its costly-to-refine oil profitably, but those times are now long gone and probably will never return, as the world increasingly switches away from fossil fuels. Especially tar-sands oils, such as from Canada and from Venezuela, should stay in the ground, and not only because today’s oil prices are too low to sustain selling them, but also because those extra-heavy oils are the worst to burn, from the standpoint of causing global warming.

As an example of this economic reality, a major US corporate investor in Venezuelan oil is Chevron Corporation, and Zacks Investment Research headlined on 5 October 2011, “Chevron Sees Carabobo Oil in 2012”. It stated:

According to a company executive, US energy behemoth Chevron Corp. (NYSE: CVX – News) may see the start-up of an oil field in Venezuela’s Orinoco Belt next year. The super-major is confident that it can commence production from Orinoco’s Carabobo Project 3 – which has estimated reserves of 66 billion barrels – in the third quarter of 2012. …

Chevron holds a 34% interest in Carabobo Project 3, while Venezuela’s national oil company Petroleos de Venezuela S.A. (or PDVSA) controls 60%. The remaining stake is owned by Venezuelan and Japanese firms.

Following the first production of 50,000 barrels per day, … [Chevron] is looking to boost volumes by an additional 50,000-100,000 barrels per day every two years. Carabobo 3, one of several Orinoco projects, is estimated to reach a maximum output of approximately 400,000-480,000 barrels of crude oil per day by 2016.

There is no public indication, at least not online, that even the “first production of 50,000 barrels per day” has been yet achieved, though it had been expected to occur within a year. Chevron’s 2017 Annual Report (covering the year 2016) is the latest online, and it doesn’t so much as even mention “Carabobo.” And this was after the 5 October 2011 prediction that “Carabobo 3, one of several Orinoco projects, is estimated to reach a maximum output of approximately 400,000-480,000 barrels of crude oil per day by 2016.” Clearly, that’s a poorly performing investment. Chevron’s current web-page on “Venezuela” says “Chevron has a 34 percent interest in Petroindependencia, S.A., which includes the Carabobo 3 Project,” but it provides no number of barrels of oil being produced there (if any) — not even now, in 2019. Bad investments die in silence and in obscurity, but good investments get trumpeted everywhere — and this one is being trumpeted nowhere.

Any oil sales from those fields will not only be delayed until when oil prices are again high enough to sell those dirty oils at a profit (which is increasingly unlikely ever to happen again). The investment values of those companies will likewise be especially hard hit as the problem of unburnable reserves becomes increasingly widely recognized and understood by the public. The public won’t remain ignorant and deceived about these matters forever. This is like a Ponzi scheme.

Russia’s Government seems determined never to accept this US coup imposing America’s “regime-change” upon the sovereign nation of Venezuela, and has made the decision to send military assets, and to invest both in Venezuela’s Government and in the oil company. On January 29th, Russia’s Interfax News Agency headlined in Russian, “The Ministry of Finance of the Russian Federation hopes to get external debt payments from Venezuela”. The neoconservative Jamestown Foundation remarked about that on January 31st by saying that “These debts may eventually be written off by a new opposition Venezuelan government led by the self-proclaimed interim president, Juan Guaido, if it manages to push Maduro out (see EDM, January 28, 2019). Yet, even if Maduro somehow succeeds in clinging to power with Russian help, he will hardly have the resources to service the loans.” That, unfortunately, happens to be true. The only sensible reason why Russia would be committing itself to protecting Venezuela’s sovereignty would be in order to say to Washington that America’s long string of foreign regime-changes (Iraq, Libya, Syria, HondurasUkraine, etc.) has now ended — to establish the principle (as Russia has recently done in Syria) that no longer will Washington’s invasions and coups be tolerated, no more conquests (additions to its empire) will be allowed. Somebody has to draw the line, finally, and the other nuclear superpower could be the one to do it. Other than that, however, Russia, like other investors, can only experience losses from investments in Venezuela. Venezuela is now an asset only in “The Great Game”. Russia’s protecting in Venezuela the principle of national sovereignty — no coups, no conquests, at all — is as moral as America’s repeatedly rejecting that principle is immoral; but, as an investment, Venezuela simply is a loss. If “The Ministry of Finance of the Russian Federation hopes to get external debt payments from Venezuela,” then Russia’s Ministry of Finance should be expecting to be disappointed in that “hope.” But that hope wouldn’t, in any case, be a sound reason for what Russia is doing there. The only “asset” to be won in Venezuela is protection of the most basic principle of international law: the independence and sovereignty of each nation. Hitler and his fascist allies, and Stalin and his communist allies, violated that principle; but now fascist America and its allies routinely violate it. Venezuela’s allies (unlike Neville Chamberlain) are supporting the foundation-stone of international law: national sovereignty and independence. For the US and its allies to reject the results of Venezuela’s (or of Syria’s or of Iran’s) elections is no basis for invalidating those results, and the US Government’s stooge Juan Guaido is simply a Venezuelan traitor, and should be treated as such, by an appropriate trial for treason. Certainly, there is no Constitutional basis for Guaido’s power-grab, despite the lies to the contrary by the putchists such as in America and its allied regimes.

All oil-exploration should therefore now stop, and existing tar-sands oil fields should simply be abandoned altogether. Only the easiest-to-refine (the “lighter”) oils should be sold and burnt right now. There is going to be a rush for the exits in the stocks of those “extra-heavy oil” companies, and the only question is when it will happen. Regarding that rush, the situation is very different in Venezuela than it is in Canada, because the US Government will delay as long as possible the collapse of Canada’s oil-sales, but the US (and Canada) want to expedite the collapse of Venezuela’s — at least until and unless the current Venezuelan coup succeeds. (And Canada’s Foreign Minister, Chrystia Freeland, did the key preparatory work for US President Trump to pull the plug on Venezuela’s Government; so, both of those governments have actually led in overthrowing and replacing Venezuela’s non-US-allied Government.)

Venezuela became addicted to selling its filthy oil, but now can only lose money with every barrel it sells of its oil. Each day of the company’s operations is simply eating the company’s seed-corn — and there is nothing like Canada has, to soften the blow. That’s not only unsustainable, it has already become a crisis, and Washington is exploiting it.

PDVSA’s latest online financial report is for 2016 and it shows that “Profit before income tax” was $16,317,000 in 2014, then $1,469,000 in 2015, and then $955,000 — less than a million dollars — in 2016. During the three-year period, “Current assets” declined from $55.2 billion to $54.6 billion, and “Current liabilities” declined from $55.7 billion to $50.0 billion. “Financial debt” declined from $40.0 billion to $33.9 billion. “Total assets” declined from $217.4 billion to $189.7 billion; and “Total liabilities” declined from $127.7 billion to $102.6 billion. Probably the company is already operating in the red now, but with every year of deteriorating infrastructure, just wearing out, with more and more and longer deferred maintenance, and with a bad long-term prospect for profitability, could the Government even sell the company? If Trump succeeds and PDVSA and every other state-owned asset in Venezuela becomes privatized, Venezuela’s citizens will be left with nothing, and the only beneficiaries will be the international bankers, even as international investors will need to take haircuts on their existing Venezuelan loans. The oil that PDVSA sells shouldn’t even be bought; it should simply remain in the ground.

According to the latest public information, PDVSA showed less than a million dollars of profit in 2016 — and the trend was downward. Anyone in Venezuela who thinks that the country can be sustained in the future, as it was in the past, from the sale of Venezuela’s exceptionally costly-to-produce oil, isn’t taking into account the broader picture, and the impact that the global-warming phenomenon will inevitably have upon the fossil-fuels industries.

There may be ways to jiggle the books to make PDVSA fool some investors into buying the company, but only the international bankers would be profiting from a sale of that firm.

Foreign Policy magazine, which represents America’s aristocracy, headlined on 5 June 2018, “It’s Time for a Coup in Venezuela”, but even if that turns out to be the final solution to the Venezuelan problem for America’s aristocrats, it won’t solve anything for the Venezuelan public — basically like Hitler’s “final solution” did nothing to benefit Germany’s Jews. Germany’s aristocracy did nothing for Jews then, and America’s aristocracy will do nothing for Venezuelans now. They’re all on their own. The leaders of the US-allied nations don’t want to save them, and instead follow in the fascist and Nazi tradition. The leaders in Venezuela’s current Government, who want to save them, simply can’t save them. It’s far too late for them to start now, to do what needed to start back in “the early 1980s of 93,000 b/d” from Venezuela’s Orinoco belt — which would have been for them to stop what ought never even to have been started there: extraction of that oil.

CONCLUSION

The poverty and violence that now rack Venezuela result from a broader situation in which selling what shouldn’t even be bought has run its miserable course until the final act, which is a Government that has reached the stage where it can produce income only for international bankers and for the aristocrats who control them. Any oil company now that would want to buy those assets would merely be adding to its assets — chiefly the dirty oil in the ground — ‘assets’ (oil reserves) that can never even be used (unless the propaganda becomes even more effective in the future than it has always been until now, which might be impossible to achieve). Oil companies already have lots more of that dangerous filth than anyone except people in finance will ever be able to benefit from buying or selling.

For Venezuelans, this is a great tragedy. The US and its allies are (and have been) doing everything they can to exploit the tragedy.

It’s like a hungry lion chasing a fleeing exhausted deer, who now is finally trapped.

That’s the ugly reality.

Liked it? Take a second to support The Duran on Patreon!
Advertisement
12 Comments

12
Leave a Reply

avatar
7 Comment threads
5 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
Olivia KrothRaymond Comeauteles Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Olivia Kroth
Guest

Venezuela’s people are not suffering at all. On the contrary, they live well, in spite of the US economic sanctions.

teles
Guest

Telesur English:

Venezuelan Government presents evidence of US coup plot
The US gangsters want to steal Venezuela’s oil

Olivia Kroth
Guest

TELESUR ENGLISH: In an interview for teleSUR, Venezuela’s Vice President for Planning Ricardo Menendez said that about 80 percent of Venezuelans reject any interventionist action against the South American nation. Menendez indicated that the figure is derived from the recent study conducted by the Venezuelan Planning Institute over a period of two years. The official said that the results of the analysis contrasts with the story the opposition has tried to write over the so-called crisis in the country. The results of the study show 92 percent of people responded negatively to a military invasion of Venezuela and 86.5 percent… Read more »

Olivia Kroth
Guest

Why People in the USA Are Suffering
What’s dooming the USA isn’t merely a local situation, but instead is global and moral.
The US government is hated worldwide because it is brutal, criminal and murderous. Therefore US citizens abroad are treated as international pariahs. Nobody welcomes them anywhere.
The only way that people in the USA will stop suffering is if they stay at home, stop traveling, stop exporting their immoral ideas, and their ugly, stinking green toilet paper money.
They should use all of this exclusively for themselves. Then they will stop suffering.

Raymond Comeau
Guest
Raymond Comeau

if the problem in Venezuela is that it is trying to survive on just an oil income. What about Saudi Arabia. What other resources does Saudi Arabia have? Are they making crystal from sand? Or, are they selling chopped heads.

The USA is one of the world’s worst Terrorist Nations along with Isra-Hell. The USA needs to be reined in by the UN or the World International Criminal Court in the Hague. If those two Organizations have the guts to do so. If not, we will have to wait until the USA destroys itself which is happening as I type!

Olivia Kroth
Guest

Very true. And furthermore, Venezuela will even sell more oil in 2019, because the demand for oil is rising. GAZPROM bank is handling Venezuelan oil sales now. The revenues are deposited in Venezuela’s accounts with the Russian bank, so the US cannot steal it any more. The sales are made in rubles and other international currencies, not in US dollars. So Venezuela will not suffer at all. TASS reports: International Energy Agency maintains 2019 forecast for oil demand growth Business & Economy February 13, 12:50 UTC+3 IEA experts attribute revision of the forecast growth in supply in the oil market… Read more »

Olivia Kroth
Guest

TASS reports: Venezuela to increase oil output by 1 million barrels — President Nicolas Maduro World February 14, 1:00 UTC+3 Venezuelan President Nicolas Maduro said the country is “using difficulties that resulted from sanctions to create a modern, self-sustainable economy” BEIRUT, February 13. /TASS/. The Venezuelan government plans to increase oil output by more than 1 million barrels, President Nicolas Maduro told Al Mayadeen TV channel on Wednesday. “We are using difficulties that resulted from sanctions to create a modern, self-sustainable economy, and call upon investors from Arabic and Islamic countries to invest their money into developing the oil and… Read more »

Olivia Kroth
Guest

PRESS TV: US Congress won’t let Trump invade Venezuela: Democratic rep. Thu Feb 14, 2019 11:09AM [Updated: Thu Feb 14, 2019 11:14AM ] US Democratic lawmakers have made it clear that Congress won’t allow Trump launch a military intervention in Venezuela, where the US-backed opposition has been challenging the legitimate government of President Nicolas Maduro. Eliot Engel, the Democratic chairman of the House of Representatives Foreign Affairs Committee, raised concern on Wednesday about Trump’s talks of military action, which he described as “saber-rattling.” “I do worry about the president’s saber rattling, his hints that US military intervention remains an option.… Read more »

Olivia Kroth
Guest

Venezuelans are not beggars. They live well and do not need US “humanitarian aid”, which would be just another pretext of invading. TASS reports: Maduro says he will not allow US humanitarian aid in Venezuela Society & Culture February 12, 18:27 UTC+3 The Venezuelan leader harshly criticized the US administration, blaming it for the “political war” February 12. /TASS/. Venezuelan President Nicolas Maduro has stated that he will not allow the delivery of US humanitarian aid to Venezuela, as the US is thus trying to justify a military intervention. The US is sparking a war to seize Venezuela, he said,… Read more »

Olivia Kroth
Guest

TASS reports: Venezuelan vice president discusses bilateral cooperation with Russian ambassador World February 14, 5:51 UTC+3 The Venezuelan Foreign Ministry said that “261 agreements in the sphere of energy, industry and construction” have been signed between Caracas and Moscow so far CARACAS, February 14. /TASS/. Venezuelan Vice President for Economic Affairs Tareck El Aissami and Russian Ambassador to Caracas Vladimir Zaemsky have discussed strengthening bilateral economic cooperation, the Venezuelan Foreign Ministry reported on Wednesday. “On Tuesday, Vice President Tareck El Aissami met with Russian Ambassador to Venezuela Vladimir Zaemsky at the building of the Ministry of Industries and National Production… Read more »

Olivia Kroth
Guest

TELESUR ENGLISH: India Vows to Continue Buying Venezuelan Oil Despite US regime’s Threats against Venezuela India refuses to subordinate itself to the U.S.regime’s strategy against Venezuela. India’s Ministry of Foreign Affairs spokesman, Raveesh Kumar, said Thursday that the country will keep on doing business with Venezuela on the basis of purely economic considerations, a statement which does not submit to the United States strategy to isolate the Bolivarian country. “Venezuela is the chair of OPEC (Organization of the Petroleum Exporting Countries) and GECF (Gas Exporting Countries Forum). We don’t have any barter system with Venezuela; commercial considerations and related factors… Read more »

Olivia Kroth
Guest

TELESUR ENGLISH: Venezuela Receives 933 Tons of Medical Aid From Allies Abroad Sixty-four containers holding 933 tons of medical supplies, from gastrointestinal medication to prenatal vitamins, arrived from Venezuelan allies Thursday, the Health Ministry reported. Twenty-five million euros-worth of humanitarian aid was delivered to Puerto de la Guaira, Venezuela from international partners in Cuba, China, Russia, Palestine, Turkey, among others. Over 22,570 units of spare parts for medical equipment, 192,000 kit for diagnostic tests and “more than 100,000 kit for cytology” were included in the shipment, which Health Minister Carlos Alvarado said is received regularly in the port city. “It… Read more »

Latest

Here’s Where America’s Imported Oil Comes from: Venezuela Is Currently the 4th-Largest

Saudi Arabia used to be the top foreign source of oil imported into the US, but now it’s only a very weak second-place to Canada.

Eric Zuesse

Published

on

Originally posted at strategic-culture.org:


At the present time, the latest month for which the US Department of Energy publishes the number of barrels per day (bpd) of oil that’s exported to the US is November 2018. Here are the rankings:

1. Canada        142,206 bpd

2. Saudi Arabia  30,028

3. Mexico        18,020

4. Venezuela     16,889

5. Iraq          11,767

6. Colombia      7,769

7. Russia        7,611

8. Ecuador       5,866

9. Nigeria       5,392

10. Algeria      4,848

11. UK           4,653

12. Norway       4,073

13. Kuwait       3,027

14. Brazil       2,777

15. Belgium      2,075

16. S. Korea     1,927

17. Netherlands  1,462

18. Egypt        1,405

19. UAE          1,771

20. China        1.268

21. France       1,239

22. Singapore    1,232

23. Indonesia    1,204

24. Argentina    1,101

25. Peru         1,061

26. Denmark      1,000

27. Brunei       961

28. Spain        846

29. Angola       833

Here were the top 10 for the entire year of 2015 as reported by Bloomberg Finance at Forbes. For comparison to today, the country’s sales and rank in November 2018 is also indicated [between brackets]”

1. Canada        3.2 million bpd  [1. Canada 142,206]

2. Saudi Arabia  1,1 [2. Saudi Arabia 30,028]

3. Venezuela     780,000 bpd [4. Venezuela 16,889]

4. Mexico        690,000 [3. Mexico 18,020]

5. Colombia      370,000 [6. Colombia 7,769]

6. Iraq          230,000 [5. Iraq 11,767]

7. Ecuador       225,000 [8. Ecuador 5,866]

8. Kuwait        210,000 [13. Kuwait 3,027]

9. Brazil        190,000 [14. Brazil 2,777]

10. Angola       190,000 [29. Angola, 833]

Clearly, the figures change over time. Whereas Angola was #10 in 2015, it’s #29 now; and whereas Russia, Nigeria, and Algeria, weren’t in the top 10 in 2015, they now are.

US President Donald Trump is bringing down the latest Venezuelan monthly number from 16,889 to close to zero. On 25 August 2017, Reuters headlined two stories, “Trump slaps sanctions on Venezuela; Maduro sees effort to force default” and “Venezuela says US sanctions designed to push Venezuela to default”. The first of those reported that, “US President Donald Trump signed an executive order that prohibits dealings in new debt from the Venezuelan government or its state oil company on Friday in an effort to halt financing that the White House said fuels President Nicolas Maduro’s ‘dictatorship’.” The second reported that Venezuela’s Government daid that Trump’s action “essentially forces the closure of its US refining unit Citgo,” which means bringing an end to Venezuela’s oil exports to the US

Venezuela’s socialized oil company, PDVSA, of which Citgo is the US distributor, had never prepared for the measures that Trump is now imposing, and Reuters’s report said, “As a result, it will be it tricky for PDVSA to refinance its heavy debt burden.” The Reuters report continued:

“Maduro may no longer take advantage of the American financial system to facilitate the wholesale looting of the Venezuelan economy at the expense of the Venezuelan people,” US Treasury Secretary Steven Mnuchin said on Friday.

PDVSA, the financial engine of Maduro’s government, is already struggling due to low global oil prices, mismanagement, allegations of corruption and a brain drain.

However, the likely failure of Venzuela’s oil company is due not only to the lowered price of oil, but to the fact that Venezuela’s oil is among the two costliest in the world to produce, because it’s from the dirtiest source, tar sands, much like Canada’s oil is. The difference between Canada and Venezuela is twofold: first, that whereas Canada is a vassal-state of the US empire and so its aristocracy is allied with America’s aristocracy (which controls America’s Government), Venezuela isn’t. And, second, that whereas Venezuela has a monoeconomy that’s based on oil (which accounts for around 95% of Venezuela’s exports), Canada does not.

Saudi Arabia used to be the top foreign source of oil imported into the US, but now it’s only a very weak second-place to Canada in this, exporting only 21% as much oil to the US as does Canada. This is a huge decline for the Sauds.

Whereas Saudi oil is the world’s most “light” or cleanest and least-costly to produce and therefore has the lowest “carbon footprint” of any oil, Canada and Venezuela have the most “heavy” or dirtiest and most-costly to produce and therefore have the highest “carbon footprint” of all the world’s oils.

(NOTE: There are many different ranking-systems for the ‘average’ cost per barrel of oil produced, such as this and this and these, but all tend to vastly underestimate in order to continue the case for fossil fuels. The BBC once noted that its calculation-system “only covers the cost of production, not the cost of exploration and development.” And it also ignored the cost of transit. It also ignored environmental costs. It also ignored the costs to taxpayers for the many subsidies they pay in order for the fossil-fuels investors to continue investing in those companies. The environmental site “The Energy Mix” headlined in April 2018, “Ditched Bitumen Desperately Seeks True Commitment” and reported that fewer and fewer investors were continuing to trust the industry’s reported numbers regarding the costs of tar-sands oils. Also, on 11 February 2019, they headlined “Trans Mountain’s Fee Plan for Fossil Customers Represents $2-Billion Taxpayer Subsidy”. But, mostly, the heavy taxpayer subsidizations to the fossil-fuels industries are ignored, both by consumers and by investors. Realistically, the tar-sands oils in both Canada and Venezuela are costing far more than any per-barrel oil price that’s below $100. They are money-losers, but bring lots of money to the ‘right’ people.)

So: the US is replacing the world’s cleanest oil with the world’s filthiest oil, and that’s not only from Canada but also from Venezuela. However, because the US aristocracy want to take over Venezuela, the US Government now is set to zero-out oil imports from Venezuela, so as to increase the pressure on Venezuela’s Government to place in charge there a leader who will do America’s bidding. Canada has been working right alongside the US to achieve that objective, and will probably be supplying to the US much (if not all) of the 16,889 bpd oil that currently has been supplied by the other producer of very dirty oil: Venezuela. The US produces fracked oil, which is dirty but not as dirty as that from Canada and Venezuela. The US, Canada, and Venezuela, have been committed to ignoring the global warming problem. To the extent that the problem becomes globally recognized, the oil-production in all three of those countries will decline in its marketable price even more than will the oil-production in other countries (especially than Saudi Arabia’s oil-production, since that’s the cleanest); and, so, the profits from those dirty oils will quickly (especially for Canada and Venezuela, where it has already happened) turn into losses. All three governments — Venezuela, Canada, and US — are trying to postpone that, till as late a time as possible.

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

Latest

While Pompeo Pouts In Poland, Putin Pushes Peace In Syria

In the end, the Neocons in D.C. and Tel Aviv are showing real desperation in summoning everyone to Poland while having almost no support for the intended policy, war with Iran.

Published

on

Authored by Tom Luongo:


If there was ever a Valentine’s Day which highlight the stark differences to diplomacy between the U.S. and Russia it is this one.

In Warsaw, the U.S. cajoled some sixty countries, many of them Arab, to send representatives only to be scolded like schoolchildren by Vice President Mike Pence for undermining the drive for war with Iran.

Mike Pompeo, for his part, showed no signs of shame or remorse after his public rebuke by Hungarian Foreign Minister Peter Szijjarto.

Szijjarto retorted to Pompeo’s lecturing that “the world is not going to be a better place if some countries spend their time intervening in the internal political affairs of other countries.” He insisted that Budapest can have transparent relations with Moscow and Beijing and the West, and said it was an “enormous hypocrisy” that Hungary is singled out for its ties with Moscow.

He then went to Poland with the intention of whipping up support for a war with Iran. But not to actually call it that. Until Benjamin Netanyahu arrived with fever dreams on his lips.

As Moon of Alabama pointed out, this was a huge slap for Pompeo, whose staff kept trying to downplay the anti-Iran nature of the Poland fiasco to make it more palatable for media consumption.

By claiming that the conference is about waging war on Iran Netanyahoo is not only embarrassing the State Department and Secretary Mike Pompeo. He also makes it extremely difficult for other attendees to justify their presence. The Arabs will be especially furious that they are shown in such an open alliance with Israel and its hostility against Iran. Scheming with Israel in the dark is fine. But being publicly associated with a war mongering Israel is difficult to sell to their people. It would be unsurprising to see some of them leave.

The entire Warsaw meeting was designed to impress upon everyone how seriously they should take U.S. and Israeli desires for regime change in Iran. And how committed they are to keeping everyone in the fold on all matters pertaining to the Trump administration’s hostility towards Iran, Russia, and China.

This is part of a wider set of actions, taken broadly, designed to hit the headlines all at the same time:

  • U.S. is openly pushing for regime change in Venezuela and drumming up international support for it.
  • It is also urging EU Parliamentarians to push through new pipeline rules as part of changes to the EU’s Third Energy Package to try and stop the Nordstream 2 pipeline from being completed.
  • New sanctions were placed on Russia a few days after Moody’s had to accede to reality and upgrade Russian government debt to investment grade, which will only accelerate foreign capital inflows into Russia.

Pompeo and Netanyahu were putting the world on notice that they are not only 1) insane but 2) committed to their path to braying for war While, as Elijah Magnier points out, the entire dog and pony show in Warsawa was for Netanyahu’s re-election bid amidst cabinet resignations and corruption scandals.

At the same time, Russian President Vladimir Putin met with his Iranian and Turkish counterparts in Sochi to discuss the next phase of bringing peace to Syria.

These three countries continue moving the ball forward pragmatically and diplomatically to resolve the issues left by the U.S.’s insistence on staying in Syria.

Putin, with the iron fist firmly in his velvet glove, said two things that are important in his post-meeting remarks .

The first will give the frothing red-baiting, Trump-hating buffoons in the U.S. media and foreign policy establishments a fit of the vapors.

“President Trump is quite actively working on fulfilling his election campaign promises, which in practice rarely happens in the US political life. The withdrawal of the American troops from Syria was one of those promises,” Putin said.

Think of the thirteen different ways Rachel Maddow will spin this simple statement of truth by Putin. He’s got the goods on Trump. Putin wouldn’t say this if Trump were working for the U.S. Yadda Yadda Yadda.

This type of naked stupidity used to be frowned upon now it is openly encouraged at every level of the U.S. and European narrative machines.

But regardless of that, Putin is right to encourage Trump to fulfill that campaign promise because that is the quickest path to peace in Syria, a U.S. troop withdrawal.

Putin continued, “If that happens the only right decision in terms of security would be handing over those territories under the control of the Syrian armed forces.”

And that is his way of saying that he has control of Turkish President Erdogan and will not let the Syrian Kurds be attacked. Syrian President Bashar al-Assad will not make reconciliation between his government and the Kurdish Syrian Democratic Council easy. But it will be better than anything Erdogan would offer them.

But, then again, they lost their gambit for independence the day Barzani’s Peshmerga forces were destroyed in Erbil, Iraq last year by the Iraqi militia known as the Popular Mobilization Unit.

Erdogan’s biggest worry is the U.S. leaving the Kurds weapons after leaving to be a constant annoyance on Turkey’s border. That’s the Bolton way of doing things.

Putin also stressed that Erdogan’s pet terrorists in Idlib province are to be wiped out as part of the plan to stabilize Syria. These are all wins for Syria diplomatically, establishing Turkey as Russia’s subordinate in the power structure to reshape the Middle East.

The fact that Erdogan was not in Warsaw with his NATO allies but rather at a high level summit with the Russian and Iranian presidents tells you all you need to know about where he feels his future lies.

Then again, I’ve taken for granted that Erdogan is still a NATO member in name only for a couple of years now, so I wasn’t surprised by this.

Lastly, don’t overlook the Saudi’s offer to Putin recently about creating a new OPEC+ cartel with Russia and Saudi Arabia leading it. Trump’s own plans for Middle East peace rest on the Saudis keeping the rest of the Gulf States in line, which is why there was nothing on the agenda about ending the conflict in Yemen.

In the end, the Neocons in D.C. and Tel Aviv are showing real desperation in summoning everyone to Poland while having almost no support for the intended policy, war with Iran.

You can only hold onto people for so long through fear of retribution. Eventually, they realize you can’t attack everyone at once all the time, though Trump and company are certainly willing to give it the old college try.

As each instance of disobedience occurs and punishment is ineffective – Erdogan is still in power despite a coup attempt and a currency attack, for example – the bolder allies will become in their own defiance.


Join my Patreon and subscribe to the Gold Goats ‘n Guns Newsletter for exclusive commentary and investment ideas.

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

Latest

Deep State coup d’état against Trump confirmed by Andrew McCabe

The Duran Quick Take: Episode 84.

Alex Christoforou

Published

on

RT CrossTalk host Peter Lavelle and The Duran’s Alex Christoforou take a quick look at Andrew McCabe’s 60 minute interview, where the disgraced FBI Deputy Director admitted that DOJ officials were considering the removal of President-elect Donald Trump from office in a brazen coup attempt, by invoking the 25th amendment.

Remember to Please Subscribe to The Duran’s YouTube Channel.

Follow The Duran Audio Podcast on Soundcloud.

Via RT


President Trump has lashed out at former acting FBI Director Andrew McCabe, after McCabe said he investigated Trump out of concern the case might “vanish.” McCabe also revealed Justice Department plans to remove Trump from office.

“Disgraced FBI Acting Director Andrew McCabe pretends to be a ‘poor little Angel’ when in fact he was a big part of the Crooked Hillary Scandal & the Russia Hoax,” Trump tweeted on Wednesday. “McCabe is a disgrace to the FBI and a disgrace to our Country. MAKE AMERICA GREAT AGAIN!”

Trump savaged McCabe for his handling of the ‘Russiagate’ investigation, branded a “witch hunt” by the president. A report by the Justice Department’s Inspector General last year found that the FBI acted improperly during the investigation. McCabe, according to text messages examined by the IG, discussed developing an “insurance policy” against Trump with two other FBI employees in 2016.

Trump described the message at the time as “treason,” and said it laid bare an FBI plot to work against him once elected.

The president also accused McCabe of giving “Hillary a pass,” after the agency cleared Hillary Clinton of wrongdoing in its investigation into her email misuse, overseen by McCabe.

In her 2015 campaign for Virginia’s state Senate, McCabe’s wife Jill had taken donations from Terry McAuliffe, a prominent Virginia Democrat “with long-standing ties to Bill and Hillary Clinton.” McCabe allegedly leaked information to the press about an FBI investigation into the Clinton Foundation, to deflect attention from his own ties with the Clinton family and push back against the narrative that he was therefore impartial.

Although referencing old events, Trump’s latest attack on McCabe comes as the former FBI #2 embarks on a tour to promote his new book. Titled ‘The Threat,’ the book is a passionate paean to the three-letter agency and a diatribe against Trump.

In an interview with CBS, McCabe said Trump’s firing of then-FBI Director James Comey in 2017 prompted McCabe to open an investigation into Trump as quickly as possible.

“I was very concerned that I was able to put the Russia case on absolutely solid ground, in an indelible fashion,” McCabe told CBS’ Scott Pelley, in an interview due to air on Sunday. “That were I removed quickly, or reassigned or fired, that the case could not be closed or vanish in the night without a trace.”

McCabe did not explain the agency’s rationale for opening the investigation, beyond unsubstantiated rumors of “collusion.” He did not present any new evidence to back up the oft-repeated but still-unproven accusation.

Wearing a wire
Instead, Trump himself seemed to be the problem. Pelley said that McCabe described panic at FBI headquarters after Comey’s firing, as “the highest levels of American law enforcement were trying to figure out what to do with the president.”

Among the ideas circulated was that Deputy Attorney General Rod Rosenstein would wear a wire to surreptitiously record the president, gathering evidence that he was unfit for office, and triggering his eventual removal under the 25th Amendment. The New York Times reported this plan last year, citing an anonymous cabinet member, but Rosenstein dismissed the story as false.

Now, McCabe told Pelley that the plan was real. Rosenstein came up with the idea himself, and “it was so serious that he took it to the lawyers at the FBI to discuss it,” Pelley said.

McCabe’s investigation was handed over to Special Counsel Robert Mueller eight days after Comey’s firing and has been ongoing since. Over a year later, the investigation has not found any evidence of collusion between the Trump campaign and Russia, and is reportedly close to wrapping up.

McCabe himself was fired by then-Attorney General Jeff Sessions last March, after the Inspector General’s report concluded he lied to FBI agents about his disclosures to the press regarding the Clinton Foundation investigation.

 

 

Liked it? Take a second to support The Duran on Patreon!
Continue Reading

JOIN OUR YOUTUBE CHANNEL

Your donations make all the difference. Together we can expose fake news lies and deliver truth.

Amount to donate in USD$:

5 100

Validating payment information...
Waiting for PayPal...
Validating payment information...
Waiting for PayPal...
Advertisement

Advertisement

Quick Donate

The Duran
EURO
DONATE
Donate a quick 10 spot!
Advertisement
Advertisement

Advertisement

The Duran Newsletter

Trending