The Venezuela thread

[Volnanza]

OK, it's run off the road in this line. Someone explain to me why the largest oil field ever discovered is not "investable"? Yeah, when you say it out loud, you realize is makes zero sense.

 

[LSU-SIU]

OK, it's run off the road in this line. Someone explain to me why the largest oil field ever discovered is not "investable"? Yeah, when you say it out loud, you realize is makes zero sense.

The same reason why the country owes for the last round of companies that lost, now add the Chinese to the mix. Why would anyone be involved with the U.S. at all... the President is saying the law doesn't matter and property rights don't matter.

At $50 a barrel, I'm not sure why anyone would consider it even if it didn't have the problems it has. Its like telling American beef farmers to raise more beef.

 

[hog88]

Exxon is (rightly) worried that its not $100 billion. Its many times that, and years to come on line in a profitable way.

Exxon has made some dumb decisions lately.

 

[lawgator1]

Exxon has made some dumb decisions lately.

They aren't the only ones.

 

[hog88]

They aren't the only ones.

Very true, many in corporate America made and are making some very dumb decisions.

 

[LouderVol]

OK, it's run off the road in this line. Someone explain to me why the largest oil field ever discovered is not "investable"? Yeah, when you say it out loud, you realize is makes zero sense.

-existing infrastructure is outdated and probably not in good condition. there may be too many Band-Aids already and a completely overhaul is needed. US standards are generally going to be above Venezuela standards.
-unstable political situation in the US. how much is our government going to commit to this to maintain any investment? are they going to keep troops there, or keep replacing leaders, to make sure Venezuela doesn't seize the infrastructure when it is updated?
-unstable political situation in Venezuela. goes without saying. who knows who is going to be in charge, how much fighting there will be, and if the cartels start swinging.

the first couple years are going to be a loss for the oil companies, and unless there are real assurances that their initial investments will be protected, they have no reason to think they will be around long enough to actually make a profit.

 

[BigOrangeMojo]

Head of Conoco said there had to be significant restructuring before investment

Head of chevron said there had to be commitments but could increase production in the next 18 months if it got those


They are all saying the same thing. As is not investable

CVX already there and in neighboring Guyana. They just trying to get $$$....

 

[LSU-SIU]

-existing infrastructure is outdated and probably not in good condition. there may be too many Band-Aids already and a completely overhaul is needed. US standards are generally going to be above Venezuela standards.
-unstable political situation in the US. how much is our government going to commit to this to maintain any investment? are they going to keep troops there, or keep replacing leaders, to make sure Venezuela doesn't seize the infrastructure when it is updated?
-unstable political situation in Venezuela. goes without saying. who knows who is going to be in charge, how much fighting there will be, and if the cartels start swinging.

the first couple years are going to be a loss for the oil companies, and unless there are real assurances that their initial investments will be protected, they have no reason to think they will be around long enough to actually make a profit.

The U.S. has no ability to grant rights it does not have, further there are already exist creditors.

Trump might as well be selling bridges in Venezuela.

Backfire.

Trump May Freeze Exxon Out Of Venezuela After CEO Darren Woods Called It "Uninvestable" | ZeroHedge

 

[CobbVol]

Exxon has made some dumb decisions lately.

In my opinion, this is not about Exxon's fear of risk in this area as their entire oil industry is one big risk/reward proposition. Exxon has unfortunately allowed climate change peddlers on their BoD. Trump had said they would work with them to recover their past losses, but this looks to be a climate/anti-Trump play and we will see how far they are willing to go.

Chevron is already there and involved in exploration/production. They are the key in getting this oil to market and to our gulf coast refineries.

 

[LSU-SIU]

In my opinion, this is not about Exxon's fear of risk in this area as their entire oil industry is one big risk/reward proposition. Exxon has unfortunately allowed climate change peddlers on their BoD. Trump had said they would work with them to recover their past losses, but this looks to be a climate/anti-Trump play and we will see how far they are willing to go.

Chevron is already there and involved in exploration/production. They are the key in getting this oil to market and to our gulf coast refineries.

Its absolutely about Venezuela. Nobody sane would put even more in there for the reasons already spoken about.

Chevron is already there and involved in exploration/production. They are the key in getting this oil to market and to our gulf coast refineries.

Best case, see ya in 20 years and probably very little oil. Most of the amounts I have seen batted around are barely measurable.

Where is Venezuela involved in this?

How exactly is the U.S. going to setup legal agreements where they have no jurisdiction? Trump has said that law does not matter. He has made investing in Venezuela impossible on top of the impossible, as he is claiming he can do whatever he wants - no remedy.

 

[BeardedVol]

What difference does that make? Exxon said they didn't want to be apart of the deal. Trump said OK, you won't.

Oh I'd say if Exxon was supposed to be contributing to the $100 billion Venezuelan oil infrastructure project, and they are bowing out then it's going to make a serious difference in who is spending $100 billion dollars.

 

[InVOLuntary]

Oh I'd say if Exxon was supposed to be contributing to the $100 billion Venezuelan oil infrastructure project, and they are bowing out then it's going to make a serious difference in who is spending $100 billion dollars.

Plenty of oil companies. Like I said. ExxonMobil is just wanting more government handouts.

 

[LSU-SIU]

My guess is another PR stunt, some type of oil executive will claim they are investing a whole bunch of money or similar. However, without contracts with Venezuela itself its just a ploy, maybe even Trump gets a government guarantee... I thought we were done with all this cronyism?

I would say anyone claiming a company is just going to simply allocate a few hundred billion in there like its not a big deal is delusional. The problems there are basically not easily calculated as far as risk. Trump actually made it impossible to do real business there because he has proclaimed himself king with no court oversight to speak of. I posted an article that addressed quite a few issues with all this yesterday.

Most likely those people will be just as poor tomorrow as today, if not poorer as time goes on without U.S. government welfare. $50 oil I have no idea why any oil company would be spending real money exploring in mass let alone investing in that place -- without super large corporate welfare.

What is really troubling is the estimates I have seen for oil production possibilities even in 10 years would be very low, they're a bankrupt nation masquerading as a gas station with no gas or oil. (McCainism)

Venezuelans, I can't lie about your chances but...

We're just rinse and repeating the same crap - a bunch of nonsense and promising everyone is going to be rich.

 

[W.TN.Orange Blood]

Gang members from Venezuela Tren de Araqua has declared war on any & all LEO.

 

[volfanhill]

Plenty of oil companies. Like I said. ExxonMobil is just wanting more government handouts.

They all said the same thing. So they all want government money. Which I think it's way less about money and way more about gurantees that no matter the government the US will protect their investment

 

[InVOLuntary]

They all said the same thing. So they all want government money. Which I think it's way less about money and way more about gurantees that no matter the government the US will protect their investment

Do you really think the oil companies will walk away from the most richest oil reserves in the world?

 

[volfanhill]

Do you really think the oil companies will walk away from the most richest oil reserves in the world?

I do if they think their **** can be high jacked in x amount of years by a pissed off Venezuela populace. You know kind of what exactly happened. How the hell can Trump make any guarantees when he's out in three years? All this money to get it going is on the front end.

Before they play this game again then they probably want to know you will roll in with the military to protect their interests. He can't gurantee ****

 

[InVOLuntary]

I do if they think their **** can be high jacked in x amount of years by a pissed off Venezuela populace. You know kind is what exactly happened

Lol. You wanna bet?

 

[volfanhill]

Lol. You wanna bet?

So 5 years from now they good? In reality you have to think way longer then that if you are them. 30 plus years maybe. They have to spend hundreds of billions of dollars before they see a dime

 

[LSU-SIU]

Lol. You wanna bet?

Come back in 20-40 years and we can discuss...that is the low end.

 

[InVOLuntary]

So 5 years from now they good? In reality you have to think way longer then that if you are them. 30 plus years maybe. They have to spend hundreds of billions of dollars before they see a dime

You realize they are still owed billions, right? You realize they were awarded money where a small fraction was paid, right? Do you think being owed that money might encourage them to get back in?

Or do you think the oil will just sit there and no one will want it?

 

[InVOLuntary]

Come back in 20-40 years and we can discuss...that is the low end.

 

[volfanhill]

You realize they are still owed billions, right? You realize they were awarded money where a small fraction was paid, right? Do you think being owed that money might encourage them to get back in?

Or do you think the oil will just sit there and no one will want it?

lol you said all of that and don't get the skepticism these companies have

 

[InVOLuntary]

lol you said all of that and don't get the skepticism these companies have

Lol, and you're gullible enough to believe what they say.

 

[LSU-SIU]

It's been almost 20 years and exxon can't even gets money back from all suits they won. You can be ignorant if you choose.

Large oil and gas projects are many decades in the making and that is in good conditions. Trump won't exist and probably most of his kids either...that is best case.

I have some bridges to sell in Venezuela, you want to buy one?