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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%Nov 14 4:00 PM EST
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To: Horgad who wrote (146808)3/11/2019 2:44:25 PM
From: Elroy Jetson1 Recommendation  Read Replies (3) of 217786
 
Venezuela was in fine shape, in spite of US "sanctions", until they decided to stop spending enough of their oil income on the maintenance of their oil production industry.

Venezuela's economy is in complete collapse due to the 'management' of Maduro and the PSUV. The largest problem is they've replaced competent managers in the food, oil and electrical industries with political friends who are completely unqualified.

I doubt these idiots blew out their nation's electrical transmission system with a power overload on purpose - they simply have no idea what they're doing and the people who did have long ago left the country because they're educated engineers who can easily get jobs in other countries. This is why East Germany put up a wall to keep people from escaping.
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Venezuela had enough oil income to buy a refinery in Texas, but now can't produce enough crude to supply their own refinery, let along Chevron's refinery in Pascagoula.

Maduro and his associates have been directing the proceeds of oil sales into their personal accounts.

1.) Chevron has lost small amounts of money in Venezuela for the past two years because they have spend all of their oil production earnings on oil production maintenance that Maduro's government has refused to pay for.

2.) Eighteen months ago Maduro demanded that Chevron purchase oil equipment from the Venezuelan government at triple the global price. Chevron correctly refused and threatened to walk out of Venezuela.

3.) Maduro backed down and Chevron remained, but PDVSA no longer produces enough oil to pay for the required maintenance, even if they spent all of their oil production money on that alone.

4.) Russia then paid huge sums to station an air force base in Venezuela, but predictably none of this money was spent on oil wells or infrastructure.

Venezuela's economy has collapsed and no amount of additional Russian money can save it unless the Russian military and engineers take over the country.
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