tag:blogger.com,1999:blog-4080946.post2244036931024997831..comments2024-03-26T00:37:34.943+01:00Comments on Venezuela News And Views: Danilo Anderson, Eliecer Otaiza and Robert Serra Danielhttp://www.blogger.com/profile/12128609182544333477noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4080946.post-54955979774076017722014-10-08T17:29:06.426+02:002014-10-08T17:29:06.426+02:00Chavismo has to look inside itself, its methods to...<i>Chavismo has to look inside itself, its methods to find the culprits. But it will not, of course, blaming every Uribe and his brothers.</i><br />As you predicted. <br /><br /><i>Thus for me Serra is not an important piece of news. The important news is that the price of oil keeps going down in spite of all the Middle East turmoil. </i><br /><br />Granted, it was just another Chavista gangland slaying. Some have speculated that there is a relation between the Serra slaying and the recent fall in the price of oil. Colectivo leader José Miguel Odreman was killed by the CICPC yesterday. Some speculations are that Serra didn't make sufficient payment to Odreman's colectivo- a consequence of there not being as much money these days to distribute due to the drop in the price of oil. Speculation then goes that Odreman's colectivo killed Serra as a consequence. The CICPC closed in on Odreman and friends during the investigation of Serra's death. <br /><br />It may be that this particular Chavista gangland slaying will have greater consequences than the previous ones. Boludo Tejanonoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-87874405770400976352014-10-06T18:54:14.736+02:002014-10-06T18:54:14.736+02:00There is a news item today in the Wall Street Jour...There is a news item today in the Wall Street Journal that Venezuela has missed the "Holcim compensation payment". http://online.wsj.com/articles/venezuela-misses-holcim-payment-1412578700<br /><br />This brings home the fact that with Venezuela manufacturing and growing less each year, the needs of Venezuela increase and the strain of meeting such needs increases.<br /><br />Today, oil prices went below $90 a barrel. This is light sweet crude. The typical Venezuela blend went below $90 some time ago. Probably much of Venezuela heavy crude is selling in the mid $70s to low $80s per barrel. The reason is that heavy oil requires more expensive refining and produces a lower value product unless expensive upgrading is done. <br /><br />Many may think that this reduction in oil prices causes a more or less linear reduction in money for Venezuela. But this is not the case. <br /><br />For foreign partnerships, the Venezuela government enacted "Windfalls profits taxes". <br />The taxes work this way: PDVSA and foreign partnerships pay the state 20 percent of the income from sales of oil between $55-80 per barrel, 80 percent between $80-100, 90 percent between $100-110, and 95 percent over $110. <br /><br />Venezuela gets a much larger percentage of the value of oil sales when oil is above the windfalls profit tax values. That means that there is a much greater drop in Venezuela revenue as oil prices drop than many may have expected. From PDVSA, Venezuela can take money directly from the company coffers. But there are costs associated with producing oil that can't be differed without immediate drop in production. From the foreign partnerships, the drop in revenue due to low oil prices is immediate. <br /><br /><br /><br />Joe 999999https://www.blogger.com/profile/11644721665245952646noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-89302454451827983052014-10-06T01:00:11.959+02:002014-10-06T01:00:11.959+02:00ergo, weil stabbed gazillion times serra, accordin...ergo, weil stabbed gazillion times serra, according to villegas....<br /><br />it must be hard to be a chavista and put up with this self bullshitting all the time....Danielhttps://www.blogger.com/profile/12128609182544333477noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-18697319216326677952014-10-05T15:46:12.889+02:002014-10-05T15:46:12.889+02:00Maybe you should add Chikunguya and Dengue to the ...Maybe you should add Chikunguya and Dengue to the list. On the other hand Venezuelan bonds recovered a bit after the CITGO sale seemed to fizzle. Investors are more confident when they buy Venezuelan bonds if they think they have CITGO available to seize in case of default. I wonder where Exxon Mobil and Conoco Phillips come in when they win their arbitration cases? Fernando Leanmehttps://www.blogger.com/profile/16085680730729620836noreply@blogger.com