The oil disaster in Venezuela deepens. Soon, no gasoline at any price

[GatoGordo]

Venezuela’s Glaring Gasoline Crisis
By Nick Cunningham - Nov 08, 2018, 4:00 PM CST

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Fuel shortages are growing worse. State-owned PDVSA has seen its refineries run into the ground, and many are not operational or operating at very low levels. On paper, the refineries can process about 1.3 million barrels per day, but in reality, many have ceased operations due to a combination of factors, including a breakdown in parts, a lack of oil supply to work with, and no financial resources. According to Bloomberg, refinery utilization is down to around 17 percent, down from 50 percent as recently as 2016.

PDVSA has also suspended fuel imports because it no longer has the cash. Also, “all but 250 of [PDVSA’s] more than 1,400 tanker trucks used for local distribution” have broken down, according to Argus Media.

With operations grinding to a halt, PDVSA has burned through much of its inventories for gasoline and diesel. As a result, around 80 percent of the entire country’s fuel stations have had to suspend sales, according to Argus. “The national gasoline deficit is the worst it has ever been,” a senior official with the federation of oil unions (FUTPV) told Argus Media in early November. “Venezuela could be completely out of gasoline and diesel for vehicles in as little as a week.” Argus said that PDVSA issued widespread sale suspensions in late October. The dwindling supply of crude oil is now mostly being diverted to the international market so that PDVSA can earn some revenues needed to meet debt obligations.

“There is no gasoline, the production of gasoline in the country is practically paralyzed. The Amuay refinery has no product to produce…In addition, 70% of the gasoline produced in the country is not converted into end consumer product,” Iván Freites, secretary of the workers union FUTPV told Today Venezuela.

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https://oilprice.com/Energy/Energy-General/Venezuelas-Glaring-Gasoline-Crisis.html

1. Not a dime into maintenance for 19 years
2. Borrow TRILLIONS of dollars instead of using oil profits for spending
3. Corruption from the top down. Over 3 trillion dollars in oil profits "disappeared"

What could go wrong?

[ronatchig]

1. And yet the Citcoes

Around here have plenty of gas for sale

[GatoGordo]

2. CITGO stations gets its gas from both Venezuela and other countries, including the US

CITGO is a Venezuelan entity based in the US. That is why it is the only thing owed by Venezuela that has any value. But... Venezuela owes a lot of people money and they are going after it. The Russians have 49% equity. The US 51%.