Venezuela almost right…for once

Good day all. This story slipped past everyone, what with Barack Obola doubling down on his incompetence. It seems that Venezuela is blaming the United States government for the collapse of oil prices.

Well, they are almost right. Oil prices are collapsing in spite of that SCoaMF, Obama. If Der Fubar had his way, oil would cost $500 per barrel. In a story the Chinese news site, Xinhuanet the current President let fly:

Venezuelan President Nicolas Maduro on Thursday blamed Washington for the slump in global oil prices.

Washington is “flooding” the market with cheaper shale oil to bring down prices and ultimately impact Russia and other oil-producing nations, Maduro said at a televised Cabinet meeting.

“The U.S. and its allies want to affect oil prices to harm Russia, which produces around 10 million barrels per day, and that is the vital income of their economy,” said Maduro.

As I said, Maduro is almost right. It isn’t Washington that’s driving down oil prices, it’s the private sector oil companies pumping oil out of all the newly discovered oil reserves in the Dakotas and Texas. Right now, the United States is on the cusp of being independent of foreign oil. there’s also an additional problem with the oil that Venezuela produces. Basically, they produce sludge. According to Wikipedia:

The crude oil that Venezuela has is very heavy by international standards, and as a result much of it must be processed by specialized domestic and international refineries.

Compare this with the oil being produced in the Middle East and North America is considered “Light.” this means it’s very easy to refine into petroleum products. Since Venezuelan oil is more difficult to process, it costs more to refine. Add to this the utter mismanagement of the Venezuelan reserves, first by Hugo Chavez, (May he continue rotting away), and now by Nicolas Maduro, the Venezuelan government is starting to lose money on their oil production.

So, that loudmouthed communist has almost hit the bulls-eye. United States and Canadian oil fields are flooding the markets with good quality oil. Since exporting that sludge they call oil is the only way they can keep their economy from completely collapsing Maduro’s only hope is that OPEC will cut production in order to keep prices high. The Saudi’s and other OPEC countries have basically said that isn’t going to happen. This doesn’t bode well for Maduro’s continued good health. I hope he’s invested in bullet proof underwear.

Thatisall

~The Angry Webmaster~

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