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Politics : Politics for Pros- moderated
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To: LindyBill who wrote (250214)5/16/2008 3:15:53 PM
From: miraje  Read Replies (2) of 793743
 
That's the problem. We get about 10% of our oil from Venzulela. Who would get hurt the most if we cut them off?

VZ's crude is mostly heavy sour. Right now there is not only an over supply (Iran has tankers full of heavy sour sitting unsold), but there are no current alternatives outside of the US refineries that have the ability or excess capacity to process the stuff. VZ can't ship it elsewhere.

One scenario is that the US could cut off VZ oil imports and use the SPR and other foreign sources to make up the difference (that would work for several months, at least) and hope that Hugo's regime would implode in the meantime.

It's rather ironic that both countries are tied to each other this way..

BTW, most people are unaware that any excess crude oil capacity that the Saudis may have is also of the heavy sour variety. And putting more of it on the market will have no effect, as the refineries that can handle it are already maxed out.
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