The Wonders of Socialism: Oil-Rich Venezuela Importing US Crude September 23, 2016Posted by Tantumblogo in asshatery, disaster, error, foolishness, General Catholic, It's all about the $$$, rank stupidity, Revolution, scandals, silliness, Society, unbelievable BS.
It is true that Venezuela has some of the world’s largest proven reserves. However, almost all of that oil is very heavy, sour (sulfur-laden) crude, that either has to be extensively (and expensively) refined, or blended with much lighter crudes to be acceptable on the market.
Crude oil in the US, in contrast, has tended to be largely light and “sweet,” the most desirable kind. It varies, of course – the US benchmark, West Texas Intermediate, is just that, sort of between light and heavy – but much of the oil coming from fracking is of this highly desirable kind.
Unfortunately, to prop up their failed socialist state, the Venezuelan government under Chavez and Maduro have raided “profits” from the state oil company to the extent that the organization has lacked money to conduct normal repairs and maintenance and much of their infrastructure has become very badly run down. As a result, production has plummeted, and the ability to refine the heavy sour crude has evaporated to a marked extent. At this point, Venezuela is now having to import US crude both to serve its own national needs, and to make what product it can sell acceptable on the international oil market:
To add insult to injury, the Venezuelan government has been forced to turn to its nemesis, the United States, for help.
“You call them the empire,” said Luis Centeno, a union leader for the oil workers, referring to what government officials call the United States, “and yet you’re buying their oil.”
The declining oil industry is perhaps the most urgent chapter ofVenezuela’s economic crisis. Oil accounts for half of the Venezuelan government’s revenues, what former President Hugo Chávez once called an “instrument of national development.” The state oil company poured its profits, more than $250 billion in all from 2001 to 2015, into the country’s social programs, including food imports……..
………Venezuela can’t even produce enough oil to meet their own demands, needing to import light crude so they can mix it with their own heavy crude for export.
Oil workers, due to inflation, are making about $1 per day, which is about enough to buy two loaves of bread.
“Oh, socialism will work, but we just haven’t seen it with the right people in charge yet,” someone will argue. [People that, after a century-plus of disastrous attempts, have never been found to exist. But this is not about evidence or fact, it’s about religious belief. It’s the temptation for men to pretend they can be god, deciding the fates of tens of millions, while heaping scorn and derision on the real God]
………..What will it take for the rest of the world’s power-hungry morons to comprehend that prices can’t possibly be assigned by bureaucrats without waste?
Nothing, because they don’t want to plan and direct the economy because they think they are so smart (though, that’s part of it), but because it’s the means to the end they want: absolute, unlimited power.
Of course, one only has to look at the fates of thousands of apparatchiks, “Old Bolsheviks,” early Maoists, leaders of the Khmer Rouge, or idealistic Sandinistas to see how well that works out for most. While a few utterly ruthless men, largely drawn from the criminal ranks (like Stalin) might “enjoy” power on a scale unprecedented in human history, for most, it’s a bullet in the back of the head in a dank dungeon.
Useful idiots, Lenin called them. They are legion today.