The article from Devil’s Excrement, along with the article by Gustavo Coronel it mentions, remind me of the reasons for the blog name:
A famous Venezuelan, Juan Pablo Perez Alfonzo, referred to oil as the devil’s excrement. For countries, easy wealth appears indeed to be the sure path to failure. Venezuela might be a clear example of that.
As Gustavo Coronel’s post contends, Venezuela has and for some time has had problems with the excrement it tries to pump out of the ground:
Not only has PDVSA been importing gasoline and gasoline additives from USA to feed the domestic market, at a huge loss, but their international commitments of light oil are being largely honored by buying oil from third parties, since Venezuelan production is no longer sufficient.
. . . .
The report quotes Mr. Ramirez . . . . “My problem is that I have too much extra-heavy oil and I need to get more naphtha to increase production [of the blend]”. Explanation: Naphtha or light crude oil are blended with the heavy crude oil to produce a lighter, commercial product.
Of course, this is not possible under present conditions. And it will not be possible in the foreseeable future under the current political regime. PDVSA is now technically bankrupt, since its assets represent a lower value than its accumulated financial obligations. [Emphasis added.]
If we were playing chess we could talk about PDVSA (and Venezuela) getting very close to being checkmate. The company has no competent management, is riddled with corruption and has no money for the investments and maintenance required, while the political regime does not have enough political credibility to allow foreign companies to invest the large amounts of money that would be required to reverse the collapse.
Without oil – once Venezuela’s only commercially viable export – Chavistas seem unlikely to be able even to sustain the current extremely low levels of economic and political stability.
I am still amazed by the number of people that are still saying we should wait for elections, bla, bla bla. The video above proves beyond any doubt that Nicolas Maduro has become the Dictator of Venezuela. He has to go. Period.
And if you still have doubts, read Gustavo Coronel’s article “Approaching the Unthinkable” about Venezuela importing oil and you will realize that indeed, under Chavismo, all that oil underground will always stay there.