rapessed oil extraction machine in venezuela

                                               
                                               
                                               
                                               
                                               
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  • Why did the Venezuelan government siphone money from the oil industry?
  • The government already siphoned a substantial amount of money from the oil industry to pay for social programs, but it wasn¡¯t enough. Venezuela demanded changes to the agreements made by the international oil companies that would give PDVSA majority control of the projects.
  • How does Venezuela's oil production decline affect US refiners?
  • This production decline has particularly impacted U.S. refiners. Venezuela¡¯s oil is heavy, which means it requires more processing by refiners. But U.S. refiners have invested billions of dollars into processing heavy oil.
  • Why do US refiners make more money processing Venezuela's oil?
  • Venezuela¡¯s oil is heavy, which means it requires more processing by refiners. But U.S. refiners have invested billions of dollars into processing heavy oil. This oil sells at a discount to lighter oil, and as a result refiners make more money processing this crude oil into finished products.
  • Why is Venezuela losing its oil industry?
  • One reason for the decline of Venezuela¡¯s oil industry is that many countries ¡ª including the U.S. ¡ª have placed various sanctions on Venezuela over the years. Most recently, the Trump Administration placed Venezuela¡¯s oil sector under sanction in 2019.
  • How much oil does Venezuela have?
  • (Photo by Yuri CORTEZ / AFP) (Photo by YURI CORTEZ/AFP via Getty Images) According to the 2022 BP Statistical Review of World Energy, Venezuela has more proved oil reserves than any other country in the world. Venezuela¡¯s 304 billion barrels of proved reserves just edges out Saudi Arabia¡¯s 298 billion barrels.
  • Why did PDVSA expropriate ExxonMobil Xom & ConocoPhillips COP?
  • Venezuela demanded changes to the agreements made by the international oil companies that would give PDVSA majority control of the projects. ExxonMobil XOM 0.0% and ConocoPhillips COP 0.0% refused, and as a result their assets were expropriated.