Venezuela a failure of CAPITALISM.

[Callinectes]

You never said that growth would be at least 3%?

No I didn’t. Please put your tin foil hat back on, take your medication, and hopefully the voices in your head will stop


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[LV426]

No I didn’t. Please put your tin foil hat back on, take your medication, and hopefully the voices in your head will stop

So then you don't support that Russia Tax Cut?

[Callinectes]

Venezuela relied on fossil fuels for its chief economic export and output. You're the ones who want that, remember? So when the price of oil falls, as it did in 2016, revenues fell as well. Venezuela needed to diversify its economy. Drilling for more oil isn't going to get Venezuela out of the pickle they are in.

You cannot drill your way to higher energy prices and thus, higher revenues.

Socialism has nothing to do with it. It's all pegged to the price per barrel.

Prices go up, prices go down. Just because you get into an economic slump isn’t a reason to go full commietard


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[LV426]

Prices go up, prices go down. Just because you get into an economic slump isn’t a reason to go full commietard

I thought you said they went "full commie" before the price drops. So clearly, going "full commie" or not doesn't really have anything to do with the decline in the price per barrel, which is tied to supply.

So why are you blaming socialism for what happened in Venezuela when you so clearly make the argument that its the capitalist, global market for oil that hurt Venezuela because of the price drops?

[LV426]

Prices go up, prices go down.

Do you know why they do that?

Because the supply of oil increases or decreases.

When supply increases, what happens to the price?

So if Venezuela had invested everything into their oil infrastructure when the market was good for them prior to 2016, like y'all are saying they should have, how would that have stopped what happened to Venezuela beginning in 2016, when the global price of oil dropped, and increasing output would only lower the price further?

[Flash]

And over that time, the US oil and gas industry lost how many jobs?

Well, let's find out:

According to BLS, in 2008 there were a total of 154,000 people employed in oil and gas extraction. By February 2019, that number dropped to 150,000. And when did the drop occur? Late 2015.

Since reaching a peak of 200,800 people employed in October 2014, 25% of all oil and gas extraction jobs have been lost.

Why do you think that is?

The price per barrel, right?

So increasing production has what net effect on the price, and subsequently, employment and revenues?

The issue was the boom in oil and gas production, not jobs. Producing more with fewer workers is due to increased productivity and technology allowing lower prices.

[LV426]

The issue was the boom in oil and gas production, not jobs

But that ties into it, doesn't it?

Someone has to do the work of extracting oil, and from what the employment data shows, much of it was lost (probably) to innovation and increased automation. After all, production increased as you pointed out, yet employment has steadily declined. So as you said, they're doing more with less. The net result is lower prices overall because of higher output.

Producing more with fewer workers is due to increased productivity and technology allowing lower prices.

Because of the increase in output, not the means by which that output is increased (whether through automation or simply more hiring). The price per barrel isn't affected whether a machine or a person is extracting the oil; the price per barrel is affected only by the supply. So increasing the supply will have the net effect of lowering the price. That hurts nations and states like Venezuela and Texas, who rely on revenues from fossil fuels to subsidize low tax rates.

[Flash]

Because of the increase in output, not the means by which that output is increased (whether through automation or simply more hiring). The price per barrel isn't affected whether a machine or a person is extracting the oil; the price per barrel is affected only by the supply. So increasing the supply will have the net effect of lowering the price. That hurts nations and states like Venezuela and Texas, who rely on revenues from fossil fuels to subsidize low tax rates.

Agreed, but it helps the 300 million Americans who benefit from lower gas prices.

Refineries have been expanding and thousands are involved in those construction activities but relatively few permanent jobs because of the automation in refining. In my area there is a lot of growth in natural gas exporting facilities (LNG) that were built for importation but switched to exportation during construction.

[PostmodernProphet]

Venezuela a failure of CAPITALISM.

lol.....wtf?....

[PostmodernProphet]

the US' economic model is socialism stupid

you never heard of farm subsidies, SS, Medicare, the VA, Medicaid etc?

really?

good lord you people get more stupid every day.....

[Callinectes]

[QUOTE=LV426;2944273]

I thought you said they went "full commie" before the price drops.

Hell yeah. Chavez took power in 1999. You didn't smell the socialist stink on him back then? Shit, it was like half a bottle of Hai Karate after shave

So clearly, going "full commie" or not doesn't really have anything to do with the decline in the price per barrel, which is tied to supply.

Never said it did. What I said was if the price goes down, you don't go full commieTARD like maduro did. That fucker is the reincarnation of stalin

So why are you blaming socialism for what happened in Venezuela when you so clearly make the argument that its the capitalist, global market for oil that hurt Venezuela because of the price drops?

Actually I'm blaming maduro, but let's see here. Oil prices start dropping, 3 options come to my mind:
1) You at LEAST examine the way capitalists deal with these things and maybe, just maybe, you ask for help. Especially if you are a bus driver from Caracas
2) You invite your russian buddies to land their intercontinental nuclear bombers in your country and visit for awhile, and when they leave, you call tehran and invite a few iranian naval vessels over
3) You decide this game is too rough, and you take your ball and go home
Which door did maduro pick? 1, 2 or 3?

You know who else has a shit load of oil and a fucked up economy? Russia. You know, that place that was pretty much the birthplace of socialism? You know what country has a BIGGER, much more robust economy than russia? TEXAS! Oh, did I say "country"? My bad, Texas is a fucking STATE

[Nordberg]

Venezuela was vulnerable because it was so dependent on a single product, oil. The oil controlling countries could gut them any time they felt like it. Then they did. It actually had done a lot for the citizens ie in schools and infrastructure. They had spent money on the people. But if you are not super capitalistic, the wealthy will take you down. When oil dropped, the country suddenly suffered.

[LV426]

Agreed, but it helps the 300 million Americans who benefit from lower gas prices.

Refineries have been expanding and thousands are involved in those construction activities but relatively few permanent jobs because of the automation in refining. In my area there is a lot of growth in natural gas exporting facilities (LNG) that were built for importation but switched to exportation during construction.

There is a definite oversupply of oil, particularly in the PADD II region because that is the current destination for most of the Alberta Tar Sands sludge. So much of it, in fact, that refineries in the Midwest enjoy price discounts because of the oversupply.

The KXL pipeline would reverse that oversupply by diverting the flow of oil from PADD II down to the Gulf Coast where the Tar Sands sludge can be refined and sold globally. That will cause the price per barrel to increase, which is what TransCanada even said in their permit application.

[LV426]

Hell yeah. Chavez took power in 1999. You didn't smell the socialist stink on him back then? Shit, it was like half a bottle of Hai Karate after shave

The problems Venezuela faced didn't arise until the last couple years, and that's because of the price per barrel.

[LV426]

Never said it did. What I said was if the price goes down, you don't go full commieTARD like maduro did. That fucker is the reincarnation of stalin

You JUST SAID in literally the sentence before, that Chavez went full commie back in 1999. So you're just shifting goalposts around to accommodate your bullshit argument that socialism, and not the global oil market, is to blame for the problems Venezeula faced once the price per barrel dropped.