• Sprott Money
    05/26/2016 - 05:58
    How many “emergency” “secret” meetings do the central planners around the world need to have before the citizens of the respective countries begin to fully understand and take notice that something...

Guest Post: Venezuela Ramps up China Oil Exports Unsettling Washington

Tyler Durden's picture


Submitted by John Daly of OilPrice.com,

The biggest geostrategic change of the past decade overlooked by Washington policy wonks in their fixation on their self-proclaimed “war on terror” is that Latin America has been throwing off the shackles of the Monroe Doctrine.

These ignored developments may well soon refocus Washington’s attention on the Southern Hemisphere, as Venezuela’s President Hugo Chavez reorients his country’s to China.

It is not an inconsiderable element of concern for the Obama administration. According to the U.S. Energy Administration, the United States total crude oil imports now average 9.033 million barrels per day, with the top five exporting countries being Canada (2.666 mbpd), Mexico (1.319 mbpd), Saudi Arabia (1.107 mbpd), with Venezuela in fourth place at 930 thousand barrels per day. Note that two of America’s top four energy importers are south of the Rio Grande.

Furthermore, Venezuela’s reserves according to OPEC now top those of Saudi Arabia, with Venezuela now estimated to have the largest conventional oil reserves and the second-largest natural gas reserves in the Western Hemisphere. Two years ago OPEC reported that of the organization’s 81.33 percent of the globe’s known oil reserves Venezuela had 24.8 percent, exceeding Saudi Arabia with 22.2

So, why is Chavez in Washington’s bad books? Well, among other reasons, for the company he keeps, as the Russian Federation, Iran and Cuba are all allies. Note that the first two are also major oil exporters.

Worse however are the social programs that Chavez has implemented to benefit his people, which not only smack of socialism but offer an alternative to Washington’s proscriptions. Case in point - Venezuela’s health care system. A joint Cuban-Venezuelan medical program, “Barrio Adentro,” has made health care free and accessible to all Venezuelans. Founded in 2003,  Barrio Adentro expanded Venezuela’s national health care system by employing more than 30,000 Cuban medical professionals as the government equipped clinics and hospitals with advanced high technology diagnostic and surgical equipment.

Something that Americans might consider as the presidential race heats up, with Medicare on the table. Such alternatives hardly please the powers that be in Washington, but are increasingly considered in Latin America.

But, back to energy. Despite the primacy of Venezuelan oil sales to the U.S. Caracas is shifting gears, and China will soon to become Venezuela’s main trade partner, with oil sales surging 60 percent in 2012.

During a recent interview Oil Minister Rafael Ramirez said, “We are selling 640.000 barrels of petrol per day to China.” This is now equivalent to 2/3 of Venezuela’s oil exports to the U.S., up from 400,000 barrels per day in February. For those with a sense of history, before President Chavez took office in 1999, Venezuela did not ship oil to China, but Chavez has stated that by 2015 he intends to ramp up Venezuelan oil exports to China to one million barrels of crude per day. According to Ramirez, the rise in exports will come from increased production in the natural resource-rich Orinoco Oil Belt in the east of the country.

It is hard to see this emphasis shift as anything but a short-sighted diplomatic disaster for the U.S. Compounding the degradation of Washington, which insists that China in Africa in particular exploits poor nations by buying resources at rock bottom prices, Ramirez said simply, "We are selling oil to China at a better price than what is sold in the U.S. market.'' And, given Washington’s foreign aid stinginess, last week President Chavez announced that China Development Bank will bankroll $4 billion dollars in development projects, to include housing, energy and industrial growth.

Again, those with a sense of history might note that the year Chavez took office, Venezuela exported to the U.S. market 1.5 million bpd.

So, where does Washington go from here? If it wants to preserve its increasingly tenuous foothold in a nation with the world’s largest oil reserves, it might begin by engaging in some honest diplomacy.

And match Chinese rates of pay.


[ZH addition - there appears to be more to this whole Venezuela thing - cue: Gratuitous picture of Miss Venezuela]

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 08/23/2012 - 12:55 | 2730784 Cult_of_Reason
Cult_of_Reason's picture

Dutch Finance Minister Urges Germany to Remain Strict on Greece


Thu, 08/23/2012 - 12:59 | 2730811 TruthInSunshine
TruthInSunshine's picture

The pic of the muy caliente chick is really a cheap, clickbait trick, and beneath the usual standards of ZH.

That's the reason I clicked on this headline; I just wanted to express my opinion.

Thu, 08/23/2012 - 13:02 | 2730815 Dalago
Dalago's picture

Ty Dur - Random model of the day and how she relates to finance is a splendid idea.  Good work, T man.

Thu, 08/23/2012 - 13:06 | 2730836 Kitler
Kitler's picture

So that's what women look like when they aren't raised on a daily diet of high fructose corn syrup.

Things are looking up in Venezuela!

Thu, 08/23/2012 - 13:07 | 2730845 malikai
malikai's picture

Also note Mexico's position in ELM. They won't be such a large exporter for very long.

Thu, 08/23/2012 - 13:11 | 2730856 nope-1004
nope-1004's picture

chick is really a cheap, clickbait trick, and beneath the usual standards of ZH.

That's the reason I clicked on this headline

LMAO!  I come to ZH for the intellectual challenge it offers, but clicked this article because of the picture.  LOL.


Thu, 08/23/2012 - 13:13 | 2730862 Dalago
Dalago's picture

She's showing her ''Oh" face.

Thu, 08/23/2012 - 13:20 | 2730890 ChacoFunFact
ChacoFunFact's picture

She's not happy.

Thu, 08/23/2012 - 14:09 | 2731109 Temporalist
Temporalist's picture

You wouldn't be happy either if you hadn't eaten in months and are all bones and sinew.

Thu, 08/23/2012 - 14:58 | 2731305 economics9698
economics9698's picture

China dominates the motorcycle market in Venezuela and is gaining a lot of influence in the country. 

As for Chavez he is dying and is on his way out.  His opposition in the next election is a popular politician and in a fair election would win. 

Things will change soon, but I doubt the Venezuelan guys will want to give up the cheap Chinese motorcycles.

Thu, 08/23/2012 - 13:28 | 2730926 TruthInSunshine
TruthInSunshine's picture

I have been just advised that referring to a woman in spanish as "muy caliente" means that she is horny, or alternatively, in heat.

That was not my intent.  As an ignorant American, I wasn't learned real good on other cultures and languages. So what I was trying to say was that the woman pictured is quite attractive

Now, let me try to set this straight en espanol, bitchez: 

Te quiero puta.
Thu, 08/23/2012 - 13:34 | 2730959 malikai
malikai's picture

You just said "You want that bitch".

Thu, 08/23/2012 - 13:46 | 2731019 SemperFord
SemperFord's picture

He is right, most women secretly love being talked to like that.

Thu, 08/23/2012 - 14:05 | 2731091 Mountainview
Mountainview's picture

Are you a woman?

Thu, 08/23/2012 - 15:02 | 2731327 mr_T
mr_T's picture

What we need is an oil wrestling match between her ...Miss USA & China and throw in Bernanke for a Stripes scene vibe..

.. winner takes all.

Thu, 08/23/2012 - 15:09 | 2731351 SemperFord
SemperFord's picture

No, but I have only been with women...too many to count so that's how I know.

Thu, 08/23/2012 - 13:54 | 2731043 ONO47
ONO47's picture

Who doesn't want that bitch, bitchez?

Thu, 08/23/2012 - 14:07 | 2731103 OldE_Ant
OldE_Ant's picture

Just like the Greenspan briefcase or file folder barometer I think we should have the zerohedge perky marketitometer. 

If it's tits up then market is down(for some action), if it's tits down then market up(cause they have nothing better to look at).

Seems so obvious to me.   So someone start a marketitometer thread already!

End of Line

Thu, 08/23/2012 - 15:31 | 2731439 Religion Explained
Religion Explained's picture

Technically, "I love you whore" is the best translation.  "I want you bitch" would be more like  "Te deseo perra".

Thu, 08/23/2012 - 17:21 | 2731730 HarryM
HarryM's picture

There are worse ways to go than having her snap your neck with her thighs

Thu, 08/23/2012 - 14:28 | 2731184 Whalley World
Whalley World's picture

I miss Robo, her photo's of hot chicks was always a welcome thing to view.

Thu, 08/23/2012 - 13:09 | 2730848 Texas Ginslinger
Texas Ginslinger's picture

I didn't get past the photo.

Did I miss anything..??

Thu, 08/23/2012 - 13:21 | 2730895 Sudden Debt
Sudden Debt's picture

Me to... I thought this was a article about upgrade parts that I could give to my wife.... you know... investing in the future...
In a long enough timeline, everything drops to the ground....

Thu, 08/23/2012 - 15:09 | 2731353 TIMBEEER
TIMBEEER's picture

You should visit us here on Mars, we only have 1/4th of the Earth gravity. You should see all those .. even 50 year old women here on the beach .. the tits are just bouncing around in slow motion. Man, this is a paradise!

As for you guys back on earth, sorry.

Thu, 08/23/2012 - 20:08 | 2732167 StychoKiller
StychoKiller's picture

Oooh, you dog! :>D

Thu, 08/23/2012 - 13:31 | 2730944 kaiserhoff
kaiserhoff's picture

God I miss the titties on ZH. 

Thu, 08/23/2012 - 14:11 | 2731117 Muddy1
Muddy1's picture

Where did they go?  Were they banned?  As for this pic, Oh My!

Thu, 08/23/2012 - 14:45 | 2731272 kaiserhoff
kaiserhoff's picture

I suspect it has something to do with all the spoiled twelve year olds, but a little full disclosure would be nice;)

Remind me again about this "home of the free and the brave" thingy.

Thu, 08/23/2012 - 22:56 | 2732565 Angry of Hawthorn
Angry of Hawthorn's picture

Ha ha. Classic!

In answer to your question, I'm not sure!

Thu, 08/23/2012 - 13:04 | 2730826 Cult_of_Reason
Cult_of_Reason's picture

La chica es muy caliente


muy caliente chica?


Bavarian finance minister urges excluding Greece from the eurozone by end of year

Berlin. Bavarian Minister of Finance Markus Söder has urged excluding Greece from the eurozone by the end of the year. According to him further financial aid for Athens would be a mistake.
“We should give an example with Greece that the eurozone can show its teeth,” Söder says in an interview with Bild am Sonntag.
According to the Bavarian finance minister the aid for Athens is flowing “like water in sand” and “the Greeks themselves” are to blame for Greece’s woes.

Thu, 08/23/2012 - 13:14 | 2730870 vast-dom
vast-dom's picture

she's actually a he.

Thu, 08/23/2012 - 13:25 | 2730913 Sudden Debt
Sudden Debt's picture

this reminds me of a batchelor party I organized for a friend of mine a few years back :)
We gave him 4 beautifull woman with which he could do whatever he wanted but, and we also told him that, there was 1 transvestite amonst them :)
We all really couldn't see it and only I knew which one :)
And than we started adding alcohol into the party.
Man that was fun!
And we never talked about it ever again! :)

Thu, 08/23/2012 - 14:35 | 2731220 smiler03
smiler03's picture

Was he allowed to do the Crocodile Dundee test?

Thu, 08/23/2012 - 14:02 | 2731079 ONO47
ONO47's picture

Ouch, that is not funny.



Thu, 08/23/2012 - 14:22 | 2731161 Don Keot
Don Keot's picture

Reminds me of that movie "The Crying Game"

Thu, 08/23/2012 - 13:16 | 2730880 SRVDisciple
SRVDisciple's picture

In totally unrelated news: "Engineer moving from Arizona to Venezuela"

Thu, 08/23/2012 - 13:25 | 2730919 Sudden Debt
Sudden Debt's picture

they need waitors everywhere!

Thu, 08/23/2012 - 13:32 | 2730953 midtowng
midtowng's picture

If their socialist health care system can turn out hot chicks like that, then I fully support it.

Thu, 08/23/2012 - 13:36 | 2730972 Red Heeler
Red Heeler's picture

"The pic of the muy caliente chick is really a cheap, clickbait trick"

It's a click chick trick.

Thu, 08/23/2012 - 15:13 | 2731366 TIMBEEER
TIMBEEER's picture

HEY! I clicked on the pic and it said I'm the 999999th visitor this month - and that I won a free iPad! WHEEEE! Got to register .. cya!

Thu, 08/23/2012 - 13:48 | 2731027 Global Hunter
Global Hunter's picture

I had NO problem with the pic whatsoever

Thu, 08/23/2012 - 13:49 | 2731035 SAT 800
SAT 800's picture

Actually a picture of the "six foot tall tranny of the week"; from Brazil.

Thu, 08/23/2012 - 19:13 | 2732047 Buck Johnson
Buck Johnson's picture

I love that girl, give me more.

Fri, 08/24/2012 - 08:29 | 2733186 Ar-Pharazôn
Ar-Pharazôn's picture

lol enjoying a nice young pussy is not really bad while reading serious articles

Thu, 08/23/2012 - 12:56 | 2730787 fourchan
fourchan's picture

whos the chick? they can have the oil.

Thu, 08/23/2012 - 12:56 | 2730792 The worst trader
The worst trader's picture

Never mind the oil, look at those cans! thnx Tyler. More pics please.

Thu, 08/23/2012 - 13:11 | 2730857 FL_Conservative
FL_Conservative's picture

More like "barrels".

Thu, 08/23/2012 - 12:56 | 2730797 reader2010
reader2010's picture

Warz, BitcheZ.

Thu, 08/23/2012 - 13:02 | 2730820 Not Too Important
Not Too Important's picture

Not only is China becoming Venezuela's biggest customer, they are also dealing in each other's currency, bypassing the US dollar.

Yes, Washington screwed this up big time, and there's no going back.

US war with Venezuela? No. US war with its' own people? Yes.

Do NOT follow this link or you will be banned from the site!