Bush is losing Venezuela Oil supplies to China
The media side show reporting of the so-called verbal fight bewtween Bush and Chavez hides a much more important battle in south America being lost by the the Bush adminstration.
China to Invest $5 Billion in Venezuela Oil Projects, Phase One of the Chinese-Colombian Pipe Line to Pacific Ocean.
The political cost of African America ignorance of the real Venezuelan political struggle may be an unnecessary Andean Congo nuclear crisis.
The Bush Administration is losing control of the future oil supply from Venezuela and other South American countries to China.
According to Bloomberg online -- Venezuelan oil shipments to the U.S. fell 6 percent in the first four months of the year as President Hugo Chavez followed through on his plan to find new markets for his crude, according to data from the U.S. Energy Department.
With the massive Chinese worldwide export tsunamis destroying North - South American’s local industries, Venezuela once poised to become the next Brazil in light manufacturing is being hollowed out by cheap Chinese imports.
Africa Americans in the US must come to the aid of Venezuelan industries and assistance in getting capital, training and business partnerships to enable to Venezuela to expand its industrial manufacturing economy in order to balance their business and trade relations with China, India and Russia before it becomes the next Cuba.
The Chinese deal is the Asian nation's latest in Latin America to helping to change the balance of power, while meeting China’s raising energy needs. China had agreed to invest $5 billion in energy projects and billions more in Venezuela defense industries. According to Bloomberg, “sales to Asia also make more sense if and when Venezuela builds a pipeline to the Pacific across neighboring Colombia. Such a pipeline, which would cost up to $4.7 billion, would shave nearly 10 days off the trip to China, making crude sales more economical”. According to reports from Bloomberg—“Colombian President Alvaro Uribe said he and his Venezuelan counterpart, Hugo Chavez, discussed a plan to connect Maracaibo in Venezuela to the province of Choco, about 1,000 kilometers (625 miles) to the west on Colombia's Pacific coast ".
“The proposal would make it possible for Venezuela to shift exports away from the U.S., the buyer of more than 60 percent of the nation's crude, by offering a route other than the Panama Canal, which can't accommodate the biggest tankers, said Julio Cesar Vera, who is in charge of oil policy at the Mines Ministry in Bogota. Venezuela is the world's fifth-largest oil exporter”.
Venezuela sent 178.2 million barrels of crude and petroleum products to the U.S. for the first four months of 2006, down from 190.1 million barrels for the same period in 2005.
Venezuela is usually one of the top four suppliers of crude oil and fuel to the U.S., according to Energy Department figures. In some months the country sends more to the U.S. than Saudi Arabia. The top four suppliers include Mexico and Canada, and the order of the rankings change month by month.
The U.S. Senate Foreign Relations Committee met last month to discuss Venezuela's reliability as an oil supplier. A report by the General Accountability Office, the non-profit research arm of Congress, said a six-month loss of Venezuelan crude would raise oil prices by $11 a barrel and reduce U.S. gross domestic product by $23 billion.
The U.S. ``depends on us, not we on them,'' Chavez said in a May 16 interview with the U.K.'s Channel 4. Chavez warned that oil prices would soar to $100 a barrel if Venezuela chose to send its oil to China, Europe and other countries instead of the U.S.
``It looks like Chavez is laying the groundwork for cutting off oil to the U.S.,'' said James Williams, an analyst with WTRG Energy Economics in London, Arkansas. ``And the only people who will benefit from this are tanker owners.''
During his last Asian trip, President Chavez of Venezuela said he would triple sales of oil to China to 500,000 barrels a day by 2009. China also agreed to build 13 oil drilling rigs and 18 oil tankers for Venezuela. As part of the deal, China agreed to help Venezuela build a $9-billion railroad line, as many as 20,000 housing units and a fiber-optic and satellite communication network. China is also constructing an advanced space based early warning system to help Venezuela resist a military attack from the US Navy and Colombia.
The huge Chinese public works infrastructural projects will put thousands Chinese ground forces site by site with Cuban forces in Venezuela.
Under threat from Exxon Mobile and invasion from Colombia and/or the US, Venezuela has been forced to start importing, AK 47 rifles, cruise missiles, Russia Mig 29 fighter jets and other advanced weapon systems from China and India to protect its oil production.
The fear of a military confrontation with either the US or Colombia is very real.
The military window of opportunity is closing for the United States to strike Venezuela before the general elections in both countries.
Potential Asian customers, including China, don't have sufficient capacity to process the most common Venezuelan crude oil grades. India, China, Japan and other Asia countries are under taking major infrastructure oil upgrades to process Venezuela. Building the refinery units needed to handle cheaper, stickier, high-sulfur crude oil from Venezuela will take a few years. Chinese oil companies are buying refineries in the US and Canada specifically to handle Venezuela's output in order to aid the transition to massive Pacific oil shipments.
Key to the expansion of Asia oil markets is a new oil pipe line between Venezuela through Colombia connecting Asia to Southern oil.
Once the Pacific Ocean pipe line is operational, the whole balance power and control between the United States and South America will shift toward China and Asia. Countries like Venezuela will be able to play the United States against China and other energy needy economies.
President Hugo Chavez says on his Sunday television and radio shows that foreign oil companies working in the country must pay taxes he insists that they owe, or else leave. In one analysis, Exxon Mobile reportedly owns over a billion-dollar payment.United States Defense Secretary, Donald Rumsfeld, says the U.S. will not intervene to remove the government of President Hugo Chavez in Venezuela, suggesting that it could eventually lose power on its own. It appears that Rumsfeld was very wrong, Chavez is projected to win again.
Following the elections Chavez will have the political mandate to force the foreign oil companies 15/85 sharing of profits of Venezuelan oil production, to move toward the 50/50 sharing arrangement like foreign oil companies have with Saudi Arabia. The Bush Administration has blackout or filtered this reality in the mainstream Eurocentric and African American press in North America. This de facto nationalization policy by Chavez reduces US options to a potential Colombian led invasion of the rich western Orinoco oil fields. This military option bring US forces in direct contact with Cuban and Chinese forces in Venezuela.
Venezuelan President Chavez is preparing the country for a Bay of Pigs – type invasion of Venezuela from neighboring Colombia.There is enough oil in Venezuela to power the world for 50 years and China or the eastern states of US for 150 years.
Venezuela is the world’s fifth-largest oil exporter and major supplier of crude and gasoline to the eastern region of the United States.Citgo is the fourth largest gasoline retailer in the U.S. and operates in the U.S. six refineries 900,000 bpd.
In 2004 Citgo profits were up 42 percent or $625 million. Venezuela via Citgo operates a distribution network with over 14,000 gasoline stations, mostly in the Northeastern United States. Major eastern cities, Washington, Baltimore, Philadelphia, Trenton, Newark, New York and Boston are all served by oil from Orinoco oil fields. Venezuela maintains refineries and storage tanks in both southern New Jersey and by the Newark airport. There is a large and powerful African-Venezuelan community in the New Jersey/New York City area.Venezuela with a population of 23 million was the most economically developed member of OPEC and before Iraq, was the developing distribution model for the oil industry.
The Chavez government and major oil companies, like Exxon Mobil have been struggling to form a new relationship, in which the Venezuelan people would get one third of all oil profits, rather than as low as one percent. Many foreign oil companies have not paid back taxes of over 2 billion dollars. That’s like the oil companies owning Uncle Sam $30 billion.
For a poor country like Venezuela, $2 billion is a major lost funding for educational, health and social programs.Another million children would be able to attend free public schools. Almost 30 billion dollars of Venezuelan taxes payers’ money is setting in New York City banks, while the country is forced to finance foods to feed the poor people.
China and India are major new members of the growing group of countries that are importing Venezuela oil to feed their expanding economies. With both China and India nuclear armed and buying major amounts of US debt, the once private American oilmen’s looting fiefdom is trying to diversity away from US control and cut a better deal with its new Asian customers. Importers in North America worry that the increased tension between Washington and Caracas will mean less oil flowing to the US.
The expensive cost of new defense systems is taking critical funding away from much needed social and agricultural programs directed at the poor and working classes in Venezuela. The threat of war is also limiting efforts to get international financing for a national defense highway and rail system that will link all major Venezuelan cites, industrial centers and east and west sections of the rich Orinoco oil fields.
The Venezuelan connection to African Americans goes much deeper that oil. Venezuelans share the same African heritage and come from the same Western Africa society. Venezuelans are African Americans brothers from South America. Only Brazil, Cuba and Jamaica, have more African Americans than the 10 million in Venezuela. Brazil and Venezuela are the most industrialized and technically advanced African American countries outside the United States.
Together, they offer African Americans in the Gulf of Mexico and South America the best hope of successfully making the economic migration from backward agriculture economies to modern industrial society. Venezuela also forms a direct cultural and economic connection to southern Nigeria and central Africa. The lack of systemic investment in developing national roads systems and other exporting industries infrastructure left
Venezuela with no plan B counterattack to massive Chinese imports and slave labor. After the 9/11 attacks on the US, international capital markets dried up and the Venezuela light-manufacturing sector collapsed under the pressure of ruthless Chinese imports. Local auto, electronics and consumers products industries were most affected. General Motors and Ford and other car manufacturer’s abandoned Venezuela auto assemble plants for the allure of China and slave labor wages of 50 cent per hour and most advanced manufacturing plants. Even before the CIA manipulations of the oil economy in 2002, the manufacturing and food production sectors were collapsing.
The strategic challenge for the Chavez government is developing a plan to re-develop the Venezuelan light manufacturing along with increasing oil production without becoming a slave labor platform for Chinese manufacturing. Venezuela’s future is in manufacturing, not in oil exports.Africa Americans in the US must come to the aid of Venezuelan industries and assistance in getting capital, training and business partnerships to enable to Venezuela to expand its industrial manufacturing economy in order to balance their business and trade relations with China, India and Russia.
China to Invest $5 Billion in Venezuela Oil Projects, Phase One of the Chinese-Colombian Pipe Line to Pacific Ocean.
The political cost of African America ignorance of the real Venezuelan political struggle may be an unnecessary Andean Congo nuclear crisis.
The Bush Administration is losing control of the future oil supply from Venezuela and other South American countries to China.
According to Bloomberg online -- Venezuelan oil shipments to the U.S. fell 6 percent in the first four months of the year as President Hugo Chavez followed through on his plan to find new markets for his crude, according to data from the U.S. Energy Department.
With the massive Chinese worldwide export tsunamis destroying North - South American’s local industries, Venezuela once poised to become the next Brazil in light manufacturing is being hollowed out by cheap Chinese imports.
Africa Americans in the US must come to the aid of Venezuelan industries and assistance in getting capital, training and business partnerships to enable to Venezuela to expand its industrial manufacturing economy in order to balance their business and trade relations with China, India and Russia before it becomes the next Cuba.
The Chinese deal is the Asian nation's latest in Latin America to helping to change the balance of power, while meeting China’s raising energy needs. China had agreed to invest $5 billion in energy projects and billions more in Venezuela defense industries. According to Bloomberg, “sales to Asia also make more sense if and when Venezuela builds a pipeline to the Pacific across neighboring Colombia. Such a pipeline, which would cost up to $4.7 billion, would shave nearly 10 days off the trip to China, making crude sales more economical”. According to reports from Bloomberg—“Colombian President Alvaro Uribe said he and his Venezuelan counterpart, Hugo Chavez, discussed a plan to connect Maracaibo in Venezuela to the province of Choco, about 1,000 kilometers (625 miles) to the west on Colombia's Pacific coast ".
“The proposal would make it possible for Venezuela to shift exports away from the U.S., the buyer of more than 60 percent of the nation's crude, by offering a route other than the Panama Canal, which can't accommodate the biggest tankers, said Julio Cesar Vera, who is in charge of oil policy at the Mines Ministry in Bogota. Venezuela is the world's fifth-largest oil exporter”.
Venezuela sent 178.2 million barrels of crude and petroleum products to the U.S. for the first four months of 2006, down from 190.1 million barrels for the same period in 2005.
Venezuela is usually one of the top four suppliers of crude oil and fuel to the U.S., according to Energy Department figures. In some months the country sends more to the U.S. than Saudi Arabia. The top four suppliers include Mexico and Canada, and the order of the rankings change month by month.
The U.S. Senate Foreign Relations Committee met last month to discuss Venezuela's reliability as an oil supplier. A report by the General Accountability Office, the non-profit research arm of Congress, said a six-month loss of Venezuelan crude would raise oil prices by $11 a barrel and reduce U.S. gross domestic product by $23 billion.
The U.S. ``depends on us, not we on them,'' Chavez said in a May 16 interview with the U.K.'s Channel 4. Chavez warned that oil prices would soar to $100 a barrel if Venezuela chose to send its oil to China, Europe and other countries instead of the U.S.
``It looks like Chavez is laying the groundwork for cutting off oil to the U.S.,'' said James Williams, an analyst with WTRG Energy Economics in London, Arkansas. ``And the only people who will benefit from this are tanker owners.''
During his last Asian trip, President Chavez of Venezuela said he would triple sales of oil to China to 500,000 barrels a day by 2009. China also agreed to build 13 oil drilling rigs and 18 oil tankers for Venezuela. As part of the deal, China agreed to help Venezuela build a $9-billion railroad line, as many as 20,000 housing units and a fiber-optic and satellite communication network. China is also constructing an advanced space based early warning system to help Venezuela resist a military attack from the US Navy and Colombia.
The huge Chinese public works infrastructural projects will put thousands Chinese ground forces site by site with Cuban forces in Venezuela.
Under threat from Exxon Mobile and invasion from Colombia and/or the US, Venezuela has been forced to start importing, AK 47 rifles, cruise missiles, Russia Mig 29 fighter jets and other advanced weapon systems from China and India to protect its oil production.
The fear of a military confrontation with either the US or Colombia is very real.
The military window of opportunity is closing for the United States to strike Venezuela before the general elections in both countries.
Potential Asian customers, including China, don't have sufficient capacity to process the most common Venezuelan crude oil grades. India, China, Japan and other Asia countries are under taking major infrastructure oil upgrades to process Venezuela. Building the refinery units needed to handle cheaper, stickier, high-sulfur crude oil from Venezuela will take a few years. Chinese oil companies are buying refineries in the US and Canada specifically to handle Venezuela's output in order to aid the transition to massive Pacific oil shipments.
Key to the expansion of Asia oil markets is a new oil pipe line between Venezuela through Colombia connecting Asia to Southern oil.
Once the Pacific Ocean pipe line is operational, the whole balance power and control between the United States and South America will shift toward China and Asia. Countries like Venezuela will be able to play the United States against China and other energy needy economies.
President Hugo Chavez says on his Sunday television and radio shows that foreign oil companies working in the country must pay taxes he insists that they owe, or else leave. In one analysis, Exxon Mobile reportedly owns over a billion-dollar payment.United States Defense Secretary, Donald Rumsfeld, says the U.S. will not intervene to remove the government of President Hugo Chavez in Venezuela, suggesting that it could eventually lose power on its own. It appears that Rumsfeld was very wrong, Chavez is projected to win again.
Following the elections Chavez will have the political mandate to force the foreign oil companies 15/85 sharing of profits of Venezuelan oil production, to move toward the 50/50 sharing arrangement like foreign oil companies have with Saudi Arabia. The Bush Administration has blackout or filtered this reality in the mainstream Eurocentric and African American press in North America. This de facto nationalization policy by Chavez reduces US options to a potential Colombian led invasion of the rich western Orinoco oil fields. This military option bring US forces in direct contact with Cuban and Chinese forces in Venezuela.
Venezuelan President Chavez is preparing the country for a Bay of Pigs – type invasion of Venezuela from neighboring Colombia.There is enough oil in Venezuela to power the world for 50 years and China or the eastern states of US for 150 years.
Venezuela is the world’s fifth-largest oil exporter and major supplier of crude and gasoline to the eastern region of the United States.Citgo is the fourth largest gasoline retailer in the U.S. and operates in the U.S. six refineries 900,000 bpd.
In 2004 Citgo profits were up 42 percent or $625 million. Venezuela via Citgo operates a distribution network with over 14,000 gasoline stations, mostly in the Northeastern United States. Major eastern cities, Washington, Baltimore, Philadelphia, Trenton, Newark, New York and Boston are all served by oil from Orinoco oil fields. Venezuela maintains refineries and storage tanks in both southern New Jersey and by the Newark airport. There is a large and powerful African-Venezuelan community in the New Jersey/New York City area.Venezuela with a population of 23 million was the most economically developed member of OPEC and before Iraq, was the developing distribution model for the oil industry.
The Chavez government and major oil companies, like Exxon Mobil have been struggling to form a new relationship, in which the Venezuelan people would get one third of all oil profits, rather than as low as one percent. Many foreign oil companies have not paid back taxes of over 2 billion dollars. That’s like the oil companies owning Uncle Sam $30 billion.
For a poor country like Venezuela, $2 billion is a major lost funding for educational, health and social programs.Another million children would be able to attend free public schools. Almost 30 billion dollars of Venezuelan taxes payers’ money is setting in New York City banks, while the country is forced to finance foods to feed the poor people.
China and India are major new members of the growing group of countries that are importing Venezuela oil to feed their expanding economies. With both China and India nuclear armed and buying major amounts of US debt, the once private American oilmen’s looting fiefdom is trying to diversity away from US control and cut a better deal with its new Asian customers. Importers in North America worry that the increased tension between Washington and Caracas will mean less oil flowing to the US.
The expensive cost of new defense systems is taking critical funding away from much needed social and agricultural programs directed at the poor and working classes in Venezuela. The threat of war is also limiting efforts to get international financing for a national defense highway and rail system that will link all major Venezuelan cites, industrial centers and east and west sections of the rich Orinoco oil fields.
The Venezuelan connection to African Americans goes much deeper that oil. Venezuelans share the same African heritage and come from the same Western Africa society. Venezuelans are African Americans brothers from South America. Only Brazil, Cuba and Jamaica, have more African Americans than the 10 million in Venezuela. Brazil and Venezuela are the most industrialized and technically advanced African American countries outside the United States.
Together, they offer African Americans in the Gulf of Mexico and South America the best hope of successfully making the economic migration from backward agriculture economies to modern industrial society. Venezuela also forms a direct cultural and economic connection to southern Nigeria and central Africa. The lack of systemic investment in developing national roads systems and other exporting industries infrastructure left
Venezuela with no plan B counterattack to massive Chinese imports and slave labor. After the 9/11 attacks on the US, international capital markets dried up and the Venezuela light-manufacturing sector collapsed under the pressure of ruthless Chinese imports. Local auto, electronics and consumers products industries were most affected. General Motors and Ford and other car manufacturer’s abandoned Venezuela auto assemble plants for the allure of China and slave labor wages of 50 cent per hour and most advanced manufacturing plants. Even before the CIA manipulations of the oil economy in 2002, the manufacturing and food production sectors were collapsing.
The strategic challenge for the Chavez government is developing a plan to re-develop the Venezuelan light manufacturing along with increasing oil production without becoming a slave labor platform for Chinese manufacturing. Venezuela’s future is in manufacturing, not in oil exports.Africa Americans in the US must come to the aid of Venezuelan industries and assistance in getting capital, training and business partnerships to enable to Venezuela to expand its industrial manufacturing economy in order to balance their business and trade relations with China, India and Russia.
posted by Nubianobserver at 1:39 PM
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