Caracas (AFP) – US Energy Secretary Chris Wright on Wednesday dismissed claims that Washington was “stealing Venezuelan oil” after the South American nation granted its northern neighbor access to a huge chunk of its natural resources.
Wright, who traveled to Venezuela to oversee the signing of a series of energy deals worth billions of dollars, sought to dispel criticism in comments made to AFP and other outlets at Caracas airport.
The United States is due to take majority control of more than 65 billion barrels – almost 20 percent – of oil in Venezuela, which holds the largest proven reserves in the world.
Caracas has projected earnings of $209 billion over 25 years from the accord.
“I’ve seen those headlines. ‘We’re stealing Venezuelan oil.’ Of course, that’s not true at all,” Wright said, adding that “the oil in Venezuela is indeed owned by the people of Venezuela.”
“Private companies are bringing the money to produce the oil, but the benefits, the royalties and the taxes all go to the government of Venezuela and the people of Venezuela,” he said.
“All we’re doing is taking an idle, underground asset that isn’t doing anything for Venezuelan people and bringing the money, the technology to develop it.”
Wright also stressed the importance of fixing Venezuela’s electricity sector, with much of the country enduring hours-long power cuts on a daily basis.
The oil sector also needed electricity to function, he added.
“You need them both,” he said, voicing optimism given the “existing (electricity) infrastructure” in Venezuela that he believes can be put to use again under a five-year plan.
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So:
the venezuelan oil is deemed as salted, making it more difficult to process and more apt for the heavier fuels, like diesel and nafta
infrastructure to process this type of crude oil is mostly present in China (unavailable, then) andthe venezuelan processing plants are outdates and in disrepair, hence, processing it requires high costs with investment in equipment and installations and staff, over several years
meanwhile, the shift towards renewables is gaining momentum and oil consumption is on a down trend
Is it just me or something does not add up?
They can refine the oil in Texas, and cut dependence on Alberta Bitumen
Why do you think Trump is working so hard to boost the price of oil? The US is a MAJOR oil producing country.
The US produces sweet crude which we mostly export to places with refineries that process that type of oil. Our own refineries are actually set up for running the sour crude that comes from Venezuelan wells.
Exporting finished products is always much more profitable than raw materials. If the domestic production of crude is of that easier to process nature why set up the industry to depend on foreign crude?
Now is the time to buy coal.
Charcoal and some zuchinnis and eggplants and we have a good start for a great barbecue.
No military without oil. Also if the straight keeps closed price will rise.