LV426 (03-15-2019)
It is a country with one product to export, oil. It dominates their economy and it makes them vulnerable to price and use. As we go more electric, they will sell less and less. No matter what government they have, OPEC and international energy companies have power over them.
LV426 (03-15-2019)
rjhenn (03-21-2019)
Truth Detector (03-15-2019)
Nations of the world would do well to consider the Norwegian model.
A nation in which its oil resources are held as a public trust by a state-owned oil company, and in which major sectors of the economy like energy, finance, and telecommunications are owned by State companies for the benefit of the citizens of the nation. Private investment and enterprise is allowed an encouraged, but private enterprise is not allowed to control the vital public commons and mineral resources of the nation.
Norwegian Statoil is the model for a state owned oil company. PDVSA is not the model.
“It's true that private enterprise is extremely flexible, But its only good within very narrow limits. If private enterprise isn't held in an iron grip it gives birth to people who are no better than beasts, those stock-exchange people with greedy appetites beyond restraint.”
- Aleksandr Solzhenitsyn
LV426 (03-15-2019)
U. S. crude oil production has continued to climb since 2009 and has hit record highs (with a slight downturn in 2016). Why is supply and demand creating a disaster in Venezuela and a boom in the U. S. since they are in the same world oil market? Does supply and demand not operate in socialist nations?
https://www.macrotrends.net/2562/us-...storical-chart
https://tradingeconomics.com/venezue...oil-production
Truth Detector (03-15-2019)
1) The US didn't boom.
2) The same problems Venezuela faces were ones states like Texas faced in 2016: U.S. Energy Plunge Slams State Budgets, Raising Tax Hike Fears
So when you have a state that is reliant on fossil fuel revenues, and when the price of oil drops as it did, predictably those states that rely on fossil fuel revenues find themselves in a budget crunch because of diminished returns. And increasing production only makes them fall further behind because it has the net effect of further reducing the price by increasing the supply.
When I die, turn me into a brick and use me to cave in the skull of a fascist
Truth Detector (03-15-2019)
Jesus fucking Christ...
So on the one hand, Conservative morons like cawacko say that Venezuela didn't invest in its oil infrastructure so it can continue producing oil, but then on the other hand, say it is wrong for Venezuela to not diversify its economy.
Make up your fucking minds, idiots. Thanks.
When I die, turn me into a brick and use me to cave in the skull of a fascist
If the world was all socialist, there wouldn't be any dependence on oil because we would have a global green economy and use petroleum for plastics and jelly (and hemp could probably replace it there anyway).
But the world is not socialist, it is decidedly capitalist, which is why we have petro-dollars and a dependence on fossil fuels.
When I die, turn me into a brick and use me to cave in the skull of a fascist
Truth Detector (03-15-2019)
Yes, it is capitalism's fault because it's the global oil economy from where Venezuela was deriving the lion's share of the revenues it was using to fund its society...and the reason they lean on fossil fuels is because of the global market for them.
95% of Venezuela's exports are fossil fuels and it is the 6th largest OPEC member.
When I die, turn me into a brick and use me to cave in the skull of a fascist
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