Isn't Chavez partially responsible for oil prices being what they are?

[LoZoccolo]

Isn't Venezuela one of the countries in the OPEC cartel?

Why isn't he taking any heat for this?

If the rest of OPEC is responsible, why isn't he pulling out?

[dsc]

1. What would be relevant is if Venezuela is producing

at capacity or not. I honestly have no idea if they are.

[Robbien]

15. The US funded the sabotage of Venezuela oil fields

Venezuela is still trying to weed out all the US undercover mercs who damaged the oil field's capacity to produce oil.

The US says the production is still not back up to capacity. Venezuela says it is. It is anyone's guess what the truth is.

[dsc]

27. Thanks for the info

guess we won't know.

[Robbien]

28. Venezuela has set up new oil deals with

Iran, Panama, Cuba, Costa Rica, China and Russia and these deals are not based on US dollars. I am not sure if these new contracts are counted into the official capacity numbers since they are traded for food, supplies and services not US dollars. Meanwhile Venezuela has met all US contracts for oil and given extra to northeastern US states for low income families.

I tend to believe there is more oil produced in Venezuela than BushCo tells us there is.

[Name removed]

2. Deleted message

Message removed by moderator. Click here to review the message board rules.

[LittleClarkie]

3. Are any of them taking heat right now?

I thought it was Big Oil getting the heat mostly.

And I'm wondering about what I heard about crude being on the futures market and speculation driving up the price. I'd like to know more about that.

[LoZoccolo]

12. Futures markets actually help stabilize prices.

Sure, a few people make a ton of money off of it, but they're not without a purpose, and it's not easy to do, either. 90% of the traders get wiped out within their first year. And those people who make money still have to pay taxes. I used to think of the traders as parasites (I live in Chicago which is like futures city and know two very Republican traders) until I learned more about all that stuff. I actually have more respect for futures trading than stock trading.

[Telly Savalas]

50. Even in this case?

I'd read earlier in the week some analyst from one of the large investment banks saying that there's a sort of 90's-stock-marketish "irrational exuberence" in the oil market and that things will cool off with the price likely dropping to the mid-50's a barrel by year end.

It was just one guy's opinion, but it seemed rather plausible.

[Bridget Burke]

4. I don't know.

Is he?

[Avalux]

5. Price of gallon of gas in Caracas: $0.14

Here's a link to Venezuela's OPEC page:

http://www.opec.org/aboutus/member%20countries/venezuela.htm

[xchrom]

6. doesn't chavez offer discounts in distressed situations?

for certain areas -- didn't he do that in the u.s.?

i didn't hear of saudia arabia doing that.

he is the member of a cartell -- an organization -- not much sense in belonging if you aren't going to play along with everyone else.

and why is exxon or bp making so much money if the blame belongs to the oil producing countries.

isn't exxon an AMERICAN corporation?

[LoZoccolo]

16. Ha ha ha ha.

Yes, he did so for a period in a few neighborhoods in Chicago and Boston.

he is the member of a cartell -- an organization -- not much sense in belonging if you aren't going to play along with everyone else.

Right. So why does he continue to belong to a cartel?

[xchrom]

20. ha ha ha ha

why don't you ask him?

has saudia arabia done anything like that?

[LoZoccolo]

22. The leader of Saudi Arabia...

...doesn't have a bunch of apologists excusing every questionable thing he does. At least not here.

[xchrom]

24. and that's what i was expecting from you.

again -- at least chavez DID something positive -- he needs no apologist in that case.

[stepnw1f]

7. "Why"

Maybe because he has nationalized oil and uses the money to help the people of his country rather than line his own pockets?:shrug:

[xchrom]

21. that's not the answer lozoccolo is looking for damn it!

[Selatius]

8. Everybody who has oil reserves is partially responsible, BUT...

the current giant spike in oil prices is due to one man: Bush.

It's because of Bush's sabre-rattling at Iran that is driving up prices. The price of oil reflects, in large part, the fear of a bombing campaign launched against Iran.

I bet you could shave 20 to 25 dollars off the price of a barrel of oil if Bush stopped threatening war.

[mike_c]

9. OPEC doesn't set oil prices, it controls oil production...

...which is relevant primarily if prices are being artificially maintained by deliberate production cut backs. Is Venezuaela withholding oil from the world market? I'm not aware of that if it's happening.

[tishaLA]

17. I thought prices were high

because of speculators on the world market, not because of production cutbacks. In fact, I have heard that there is a glut of oil on the world market--so much so that Israel, which has historically had problems maintaining supplies for obvious geo-political reasons, had to recently turn away a shipment of oil because its stockpiles were filled to the gills and they didn't have room for more.

Maybe I've been hearing bad information, though. I admit I don't follow this stuff as assiduously as some.

[mike_c]

29. no no-- you're right-- I was talking about Venezuala's OPEC role...

...and the OP's implication that OPEC was somehow responsible for high gas prices, and hence the Chavez is involved.

[redqueen]

10. Maybe because he's trying to get it pegged at $50/barrell. n/t

[SidDithers]

11. Oil prices are driven by world demand...

and trading on the open market, not set by the members of OPEC. OPEC members could send prices upward if they were to restrict production, but I don't think any of them have the capacity to significantly increase their output in order to bring prices down. Production is pretty much at max right now, I think.

Sid

[wuushew]

13. Just accept that Chavez is a good leader

subtle attempts at bashing him via indirect topics make no one happy.

[LoZoccolo]

19. "Just acce..." are you serious??!!

I loved it.
It was much better than Cats.
I'm going to see it again and again.

[xchrom]

26. good -- the show starts in 15 minutes -- buh bye.

no need to check in and tell us how it was.

[converted_democrat]

45. I was just thinking the same thing.. n/t

[tkmorris]

14. No, he isn't

Chavez is often at odds with the majority OPEC opinion.

He isn't taking any heat for it because he has exactly jack all to do with the rise in oil prices. If you believe otherwise please demonstrate why.

[Poll_Blind]

18. It is the market that drives up the price, not OPEC, at least currently.

All OPEC countries swear to adhere to producing X amount of oil per year. If they feel the desire to drive up the price they would turn to a body like OAPAC (note the extra A) to come to some consensus on what they would do to drive it up. There is no concerted effort by OPEC to drive up the price of oil at this time, to my knowledge. All OPEC countries are operating at full capacity to keep up with world oil demands. The United States and some other countries are consuming all the oil that OPEC can produce.

But The United States, among others, wants more. The oil, which previously may have been enough, is now in scarcer supply because of overconsumption. This drives up the price as organizations and countries bid against each other to obtain it.

PB

[Vetinarii]

23. Why should he take heat?

Chavez has absolutely no responsibility to keep oil prices down, even if it were within his power (which it isn't).

His job is to get the best deal he can for the people of his country, Venezuela. If that means screwing the American consumer, then it's no less than his moral duty to do just that.

Pulling out of OPEC would be a betrayal of his own people.

[HereSince1628]

25. My understanding is crude oil production and delivery is fine

I heard it described as "very comfortable" by an oil analyst.

The refineries have been shuting down and doing maintenace associated with switching to summer blends. (The pollution cutting blends are hated by the Bush admin and the Tory-publicans would just love to knock them out of existance)
The good news is the refinery switch-over is all but completed.

About something between $20 and $30 of the high price per barrel has nothing to due with current crude oil availability.

Money managers are investmenting in oil and that is driving up the market price. Apparently a huge amount of money has been placed into oil and that surplus of investment money has inflated the price.

Geopolitical uncertainty is also a part of high prices.

Venezula is the US second largest source of crude oil. It's a political hotspot because Chavez is putting in place a radical social democracy, nationalizing oil resources and his administration is still not free of political confrontation with the Bush administration.

Nigeria is in a state of political unrest and this has required evacuation of western oil workers and their families from the country.

Saudi Arabia is the biggest producer in the world, and the portion of oil it ships through the Persian Gulf faces risks from the Iraq war and the uncertainty of a new conflict between the US and Iran.

Iraq isn't near its former production levels due to continuing conflict there.

Iran a huge producer of oil is in the thick of political uncertainty that could erupt at anytime and seriously reduce global supplies.

[Gabi Hayes]

30. tell us, please, what is a....

''radical social democracy?''

[HereSince1628]

35. I misspelled I meant to right socialist democracy...

I'm not saying it isn't a logical solution for Venezuala.

[madrchsod]

32. iran has slowed production in the fields this year

some of the african drillers are now concentrating on inter-structures of oil distribution not exploration. the boys are running up the price because there is nothing to prevent them from doing so.

there should be a excess of supply this summer according to reports last year but it seems that supply is not coming into the market anytime soon.. i wonder why?

[madrchsod]

31. the price guideline last month was

59.14 per- barrel arabian light
62.06 per- barrel brent
62.69 per barrel wti

opec is pumping the same amount of oil from jan 2005 to jan 2006
non- opec has increased amounts from jan 2005 to jan 2006

jan-feb this year world rotary rig counts are up over last year.

over all supply and demand of every oil and oil product from non conventional sources

demand in last quarter of 2005--84.03 million bopd
supply in the last quarter of 2005--85.24 bopd

oil suppy , demand , and production figures- doe/eia rig counts-baker hughes

[Judi Lynn]

33. Regarding the 40% discounted heating oil available in some U.S. states,

it's appropriate to restate what has been written abundantly throughout the winter.

Some U.S. DEMOCRATIC Congressmen contacted the major U.S. oil companies, seeking price breaks for the poorer areas of their states for the winter. They were rejected immediately. AFTER BEING BLOWN OFF by the largest oil companies, NOT BEFORE, they approached Venezuela hoping to make a deal. These Congressmen included, among others, William Delahunt, Joseph Kennedy, Jose Serrano, of the Bronx, New York, Jack Reed.

At some point, representatives of certain Native American tribes went through the same channels, met the same roadblocks, and turned to ask Venezuelan sources, as well.

During the winter, CITGO officials went personally to attend the arrivals of the oil tankers bringing heavily discounted oil to a handful of American states, as well as New York City. Chicago was not one of them, by the way. Included were Maine, Massachusetts, New York City, Rhode Island, Pennsylvania, Delaware, Connecticut, and Vermont. I don't have the complete list at the moment.

This follows a pattern in place for years of supplying oil at discounted prices to 11 very poor countries throughout the Caribbean, and Central America, with Cuba being added more recently, as well as Jamaica.

Hope DU'ers have all heard enough information on this situation to avoid being misled.

[stepnw1f]

37. Thank You, Judi (nt)

[Judi Lynn]

41. Thank you, stepnw1f , for reading. n/t

[converted_democrat]

46. Thank you for pointing that out.. n/t

[da_chimperor]

34. Because Venezuela is benefiting and getting boatloads of cash.

What would you expect Chavez to do? Pull out when they're making a fortune? :shrug:

[BrotherBuzz]

36. Aren't consumers partially responsible for oil prices being what they are?

:shrug:

[magellan]

48. Voters certainly are -- those who voted R (nt)

[Toots]

38. How about the USA?

It produces as much or more oil than Venezuela. Ooops didn't count on that one did ya?

[SammyWinstonJack]

39. And where does that oil go? Why do we export it, when we need it here?

We do export more than we utilize here, don't we, or so I've read anyway?

[sandnsea]

40. BUSH and his warmongering. Period.

End of story. That's the problem, let's not confuse it or create antagonistic divisions where there don't need to be any.

[killbotfactory]

42. Oil companies reducing refining doesn't help either

Don't worry, I'm sure Bush will get to the bottom of this:
http://www.rawstory.com/news/2005/Group_Internal_memos_show_oil_companies_limited_refineries_to_drive_up__0907.html

[sandnsea]

43. Just in time processing

It's just like manufacturing, that's what they did. It isn't necessary to turn it into something sinister, (unless they really conspired). Rather, it was a business choice the oil industry made. They closed lots of smaller refineries and consolidated, and in some cases expanded the refineries that were left. It was a business decision that they said was to increase their profit margin, their choice, not a reaction to regulations. I think it's a better strategy to just lay their own words right back on them, no conspiracy required.

Controlling production in order to control price is the real FIRST purpose of a corporation. We see it clearly with OPEC. So whether they use the business friendly words of increasing their profit margin, or the real words of production and price control, it's all the same in the end. It's high time people understood this is how all corporations work, the very nature of a corporation is to corner a market in order to control the price. That's how they do it, not with market fluctuation supply and demand bullshit.

[LoZoccolo]

44. Is it what you said in post #40 or #43 then? n/t

[sandnsea]

49. #40

I understand that they're trying to create a refinery issue. I think somebody thinks they've exposed a conspiracy to reduce the number of refineries built to control prices. As far as I can see, all they've uncovered is a routine production decision. If the purpose is to fight the environmental blame game, just saying that it was the oil industry's business plan will do it.

It doesn't mean that there is a real refinery problem though. $75 a barrel oil is the problem, and that's because of Bush's warmongering.

[converted_democrat]

47. What is your issue with Chavez? I'm really curious.. n/t