Uh Oh: Saudi Arabia defies US, cuts oil production. Russia to benefit. Dark Brandon VERY mad.

voltronblack

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Is the relationship with venezuela not repairable?

The seamless official policy of the Trump and Biden administrations has been that Juan Guaidó is Venezuela’s “interim president.” The US is thusly caught in the self-inflicted fiction of having to deal with a powerless puppet because it does not accept the democratically elected Nicolás Maduro. Although Trump has at least retreated to Mar-a-Lago, Guaidó keeps on asking to be invited to the party, much to Biden’s embarrassment.


A related conundrum of its own making is the US sanctions on Venezuela’s oil industry and at the same time needing the fuel. It wasn’t so long ago that Venezuela supplied the US with a significant amount of its daily petroleum consumption. Now Uncle Sam finds himself confronted with price inflation at the gas pump and the inevitability of negotiating with a government it does not recognize.


Similarly, the US is faced with an influx of Venezuelan immigrants fleeing economic conditions themselves caused by the US sanctions. “Because the US ended diplomatic relations with the Maduro government,” the New York Times reports, “Venezuelan migrants cannot be easily sent back – a key reason they are arriving at the border in waves,” in the first place.


Juan Guaidó – pretend president of Venezuela


When the US first picked the then 35-year-old US security asset as president of Venezuela, it must have come as a surprise to his constituents. A national poll showed that 81% of them did not recognize the name Juan Guaidó, who had never even run in a national election.


Guaidó had become head of Venezuela’s National Assembly in January 2019 when, in a rotational scheme, it was his party’s turn to designate that position. The US government didn’t care for the leftist Venezuelan president and vice president. So, disregarding the people’s democratic vote, the US chose to anoint the person who just became third in the leadership succession according to the Venezuelan constitution.


A measure of the US’s imperial influence, over fifty countries initially followed the US dictate and recognized Guaidó. Always more popular abroad than at home, Guaidó went on an international tour, where he was fawned upon by both US President Trump and House Speaker Pelosi. Meanwhile, the UN and a majority of the sovereign states of the world continued to recognize the Maduro government.


Currently, Mr. Guaidó is still the designated “interim president” of Venezuela for the US, although only a handful of other states still maintain that fantasy. He is no longer even a deputy in the National Assembly, obviating any constitutional claim to leadership.


Last March and June, high level US delegations visited Venezuela to meet directly with President Maduro, while snubbing the hapless Guaidó. When Biden hosted his “Democracy Summit” for the Organization of American States (OAS), also in June, Juan Guaidó was not on the guest list of hemispheric heads of state.


This October 6, nineteen countries voted to oust Guaidó’s delegation as the recognized representative of Venezuela at the OAS foreign ministers meeting; only four voted in favor. Although the vote failed to get the required 24-vote supermajority for expulsion, Guaidó’s “envoy” chose to forego attending the meeting in Lima. The Peruvian capital had previously lent its name to the “Lima Group” of anti-Venezuelan nations. But, as the current Peruvian foreign minister Cesar Landa noted, that group has “ceased to exist.”


New York Times counsels the US empire on how to be more efficient


William Neuman in a The New York Times opinion piece advises: “The US cannot uphold the fiction that Juan Guaidó is the president of Venezuela.” The former Times reporter and Andes region bureau chief offers to help the imperialists with their “incoherence” problem.


Noting that “the Guaidó gambit has failed and that most Venezuelans, and most of the international community, have moved on,” he states: “the fact is that Mr. Maduro is president of Venezuela and Mr. Guaidó is not.”


Neuman praises Guaidó for showing courage. And, indeed, it takes nerve for the pretend president to show his face in public. Guaidó’s championing of repressive US sanctions against Venezuela has made him profoundly unpopular. In a recent video, Guaidó gets physically roughed up by his own people on a visit to the state of Sucre.


Neuman admits that the US-backed opposition “never had a viable plan, beyond vague hopes for a military coup or for US intervention.” Although these are far from democratic forms of political expression, the former Times reporter still maintains that the opposition is the “primary political force in the country committed to democracy and the defense of human rights.”


The US has expended tens of millions of dollars to foster an opposition in Venezuela loyal to US foreign policy. But to paraphrase the nursery rhyme, “all the king’s horses and all the king’s men couldn’t put the opposition together again.” Neuman laments: “Venezuelans are fed up with opposition parties that often seem more interested in fighting with each other than in improving the country’s fortunes.”


In a tellingly truthful admission, Neuman notes: “Today, Mr. Maduro is stronger than he was three years ago, and the opposition is in disarray.”


Venezuelan government talks with the opposition stalled


At Washington’s urging, the Maduro administration had been negotiating with the opposition. But Caracas withdrew from the talks a year ago to protest the kidnapping of a Venezuelan diplomat by the US. On October 16, 2021, Venezuelan special envoy Alex Saab was abducted from his US-mandated detention in Cabo Verde and imprisoned in Miami.


The US charged Alex Saab with conspiracy to money launder. Venezuela maintains that the diplomat was procuring humanitarian supplies in legal international trade. Further, he is supposed to be protected from arrest and detention under the Vienna Convention on Diplomatic Relations, to which the US is a party.


The US wants Venezuela back at the negotiating table with the opposition. But Venezuela has made the release of Alex Saab a condition for their return. Both parties agree that Saab was instrumental in helping circumvent the crippling US sanctions against Venezuela.


Possible thawing of US-Venezuela relations


Now that inflation has soared in the US and internationally, due in part to fuel shortages driven by US-led sanctions on oil producers such as Venezuela (and Russia), Washington may be compelled to confront the blowback from its regime-change policy for Venezuela.


Starting in 2017, the US had imposed a series of increasingly draconian measures with the express intent of crashing Venezuela’s oil industry, which was the country’s primary source of income. Both direct and secondary sanctions were imposed in what amounted to an oil embargo.


Venezuelanalysis reported: “The US-led economic blockade has also seen the freezing and seizure of Venezuelan assets abroad, including oil subsidiary CITGO, 31 tons of gold deposited at the Bank of England, and a number of bank accounts.”


Recently, US oil companies such as Chevron, whose profitable concessions in Venezuela were shuttered by the sanctions, have been pressuring the Biden administration to allow them to resume operations.


The need for the US to relax sanctions to again allow Venezuela to export oil to its former largest customer became even more manifest when the OPEC+ cartel (which includes Russia) voted on October 6 to cut oil exports by two million barrels to maintain high prices by limiting supply.


The Wall Street Journal speculated that same day that the “US looks to ease Venezuela sanctions” in hopes of stimulating oil production in Venezuela. The industry publication OilPrice.Com reported, “US considers easing Venezuela sanctions to boost oil supply,” which was echoed by the Business Standard, Politico, and MarketWatch.


Nevertheless, the Biden administration has so far been quick to quash any rumors of détente. A spokesperson for the US National Security Council immediately assuaged any US congressional fears from either side of the aisle that Washington’s illegal and murderous strategy was about to end: “Our sanctions policy on Venezuela remains unchanged.”


That policy paralysis could evolve after the political pressures of mid-term US elections are past. The US may find it has to revisit its sanctions on Venezuela, which in turn could lead to dumping Juan Guaidó as “interim president” and even freeing imprisoned diplomat Alex Saab.
 

Jalether

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The US is the largest oil producer in the world so why the fukk is it still reliant on saudi oil imports
is there something I'm missing here :gucci::mjtf:

shyt makes no sense
 

ORDER_66

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Json

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The US is the largest oil producer in the world so why the fukk is it still reliant on saudi oil imports
is there something I'm missing here :gucci::mjtf:

shyt makes no sense
The price is set by oil in the entire market. So even if we kept all of our oil for ourselves, it would destroy the global economy.
 

Jalether

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The problem is we're also the largest consumer. We consume more than we produce.
Ah got it. In thag case why can't the us just replace saudi oil with kuwait,uae,qatar or even in the worst cade scenario patch things up with maduro and venezuela

Saudi shouldn't have this much juice/pull
 

voltronblack

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Ah got it. In thag case why can't the us just replace saudi oil with kuwait,uae,qatar or even in the worst cade scenario patch things up with maduro and venezuela

Saudi shouldn't have this much juice/pull

But they cannot ship much to Europe, where demand is ravenous​

It is rare for the Israeli government to agree with Hizbullah, the Lebanese Shia militia and political party. But in effect it did on October 11th, after months of American-led talks. As The Economist was published, a deal with Lebanon was awaiting review in Israel’s parliament.
This is not peace in our time: although the deal demarcates Israel’s maritime border with Lebanon it will not end the long state of war between them. But it is striking, and timely for the West, because it may unlock new gas resources that Europe desperately needs to replace supplies from Russia that have been disrupted since its invasion of Ukraine.

Nine of the 20 countries with the largest proven gas reserves are in the wider region. Qatar, the world’s biggest exporter of liquefied natural gas (LNG), plans to increase its production by 43% by 2026. Israel and Lebanon hope their maritime deal will mean new discoveries in the once-disputed waters. Hours after it was clinched, bigwigs from TotalEnergies, a French giant, met Lebanese officials. Earlier this month Energean, a British firm, started running tests at Israel’s Karish field near the border.

Yet a mix of geopolitics and poor governance makes it hard to exploit those resources. Simply getting the stuff to market can be tricky. There is little capacity to transport it from the eastern Mediterranean to Europe. A pipeline has been mooted for years. It could take a short route north to Turkey and link up with existing conduits to the European Union. But to do so it would have to cross Cypriot territory, which is politically fraught. Or it could stretch all the way to Greece, and perhaps onwards to Italy. But that would require the world’s longest undersea pipeline and take the better part of a decade to finish.

For now, that leaves liquefaction. Egypt has two LNG plants on its Mediterranean coast. Israel and Lebanon have none; Egypt has been importing gas from Israel in order to re-export it. Even running at full tilt its LNG plants can supply only 2% of Europe’s total demand (and 6% of what it used to import from Russia). Expanding capacity will take years.

Other countries are struggling to boost production. Algeria, Europe’s third-largest gas supplier, will enjoy record revenue this year. Sonatrach, the state-owned oil-and-gas giant, expects to earn $50bn from energy exports, up from $35bn last year. The windfall comes from higher prices, not higher production. Sonatrach has signed some big deals with Eni, an Italian oil major, to boost capacity. But many of its big projects will not come online before 2024.

Iraqi oil wells produce lots of natural gas but lack the infrastructure to process it. Around half is flared. In 2020 the country burned almost 18bn cubic metres of natural gas, equivalent to about 5% of Europe’s annual consumption. Researchers at Columbia University estimate that flared gas in north Africa alone could replace 15% of Europe’s imports from Russia—if it can be captured.

20221015_MAC343.png

Perhaps the biggest challenge to exports, though, is soaring domestic demand for gas (see chart). In Egypt, for example, it has risen by 35% since 2015. A fast-growing population—which hit 104m in September and adds 1m people every seven months—needs ever more electricity from gas-fired plants. The government has also urged motorists to switch fuels: many of Cairo’s ubiquitous white taxis now run on compressed natural gas rather than petrol.
Here, too, governments are belatedly taking action. Algeria is installing new combined-cycle gas-power stations, which can produce about 50% more electricity from the same amount of fuel. The national regulator reckons they will account for 55% of installed capacity by 2028, up from 23% in 2018.
Egypt, meanwhile, is urging businesses to cut consumption to free up gas for export. Such measures have rankled some Egyptians, who grumble about being told to turn off their lights so that Europeans can turn up the heat.
This article appeared in the Middle East & Africa section of the print edition under the headline "Nor any drop to burn"
 

Arithmetic

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Ah got it. In thag case why can't the us just replace saudi oil with kuwait,uae,qatar or even in the worst cade scenario patch things up with maduro and venezuela

Saudi shouldn't have this much juice/pull
We must ask *why* does OPEC's production adjustments impact our prices? If you think about it, the problem shouldn't be needing "to replace Saudi" if we're already producing much of our own supply. Therefore, the bulk of gas price inflation must be coming from home and not from the OPECs supply and demand adjustments. I do believe the problem is these U.S. companies are price gouging at some stage in the supply chain.

They (OPEC) have pull because they can ramp up production any time they want. US if I'm not mistaking is at or near production capacity. This is why even though we are the largest producer, we still can't control market prices.
 
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