Venezuela to Double Oil Output with Russian Support

[C130]

posting the state owned and run TeleSUR since it's the most optimistic

Venezuela to Double Oil Output with Russian Support | News | teleSUR English

Venezuela's oil production is set to boom due to a massive deal struck with Russia's Rosneft. Venezuela's oil output may double in the coming years, after the government secured US$14 billion in new Russian investment Wednesday. Most of the Russian investment will go towards improving output in the Orinoco Belt: a strip of Venezuela's north east that is believed to hold the world's largest proven oil reserve. According to Venezuelan estimates, the Belt holds close to 235 billion barrels of accessible oil. The deal to boost Russian investment in the region was reached after talks in Caracas between President Nicolas Maduro, National Assembly head Diosdado Cabello and the heads of state oil firm PDVSA and Russia's Rosneft. “We had a tremendous meeting, and agreed to investments for over US$14 billion to double oil production in the coming years,” Maduro stated. The deal is the latest in over 250 bilateral agreements between Russia and Venezuela, mostly in areas including technology, construction and oil. Currently, Rosneft is involved in five joint oil projects in Venezuela. One of the company's largest Venezuelan deals signed so far was in 2012, when Rosneft invested US$16 billion in developing Carabobo 2, a project in the Orinoco Belt's extra-heavy crude rich south. Growing oil cooperation is just part of a broadening relationship between Russia and Venezuela. Earlier Wednesday, Russia's foreign minister Sergey Lavrov expressed “solidarity” with Venezuela in the face of opposition destabilization. “We have confirmed solidarity with the people of Venezuela and our firm support for the policy of the government of President Maduro aimed at preventing destabilization of the situation,” Lavrov said, according to Russia's state news outlet Itar-Tass. Lavrov welcomed Maduro's efforts to engage in dialogue with Venezuela's right-wing opposition. He praised the Venezuelan leader for the “organization of nationwide dialogue with the constructive opposition in order to resolve any emerging problems within the constitutional framework and without any foreign intervention.”

 

[C130]

oil production to double with a $14 billion investment by Russia

Cheap Gasoline: Why Venezuela Is Doomed To Collapse - Forbes

to bad oil isn't going to save Venezuela.

 

[anonymus]

Does Russia want to crash oil prices even further?

Not that I am complaining, but this move of Russia is equivalent of cutting one's nose to spite enemy's face.

 

[C130]

Does Russia want to crash oil prices even further?

Not that I am complaining, but this move of Russia is equivalent of cutting one's nose to spite enemy's face.

it's crazy isn't it?? if it isn't already bad enough Saudi Arabia is flooding the market with oil, now Iraq is doing the same. once and if sanctions are fully lifted from Iran they'll begin pumping oil into a already bloated market.

might as well say Venezuela produces 3 mmbd and exports 2.3mmbd so a doubling would be 6mmbd and export of 4.6mmbd by 2017/18.

 

[anonymus]

it's crazy isn't it?? if it isn't already bad enough Saudi Arabia is flooding the market with oil, now Iraq is doing the same. once and if sanctions are fully lifted from Iran they'll begin pumping oil into a already bloated market.

might as well say Venezuela produces 3 mmbd and exports 2.3mmbd so a doubling would be 6mmbd and export of 4.6mmbd by 2017/18.

They are doing it for political purpose, rather than economic.

Venezuela need to increase its oil production massively, else its socialist government would collapse ,at prevalent prices of crude; a possibility which would be very harmful for both China and Russia as they would lose a staunch anti-US ally close to USA's border.

Though by helping Venezuela double its crude, Russia would be cutting the very branch it sits on by increasing crude oil supply.

I think that if oil prices do not increase in near future, OPEC itself may collapse. I am not predicting collapse of core OPEC, but countries which are under heavy pressure anf faces a chance of political turmoil (first position on this list goes to Venezuela) may break from OPEC and start pumping more crude to save themselves.


This crash in Crude oil prices (courtsey Shale oli) is a masterpiece move from US. It takes care of your Russian, Venezuelan, Terroristy middle eastern (your supposed non-NATO Allies/Frenemies), Iranian,problem all at same time. And if you people could improve your tech and produce shale Oil at below 40 Dollars, you would do a great social service to non-muslim world by choking Jihad finance at source.

@LeveragedBuyout @SvenSvensonov

 

[LeveragedBuyout]

They are doing it for political purpose, rather than economic.

Venezuela need to increase its oil production massively, else its socialist government would collapse ,at prevalent prices of crude; a possibility which would be very harmful for both China and Russia as they would lose a staunch anti-US ally close to USA's border.

Though by helping Venezuela double its crude, Russia would be cutting the very branch it sits on by increasing crude oil supply.

I think that if oil prices do not increase in near future, OPEC itself may collapse. I am not predicting collapse of core OPEC, but countries which are under heavy pressure anf faces a chance of political turmoil (first position on this list goes to Venezuela) may break from OPEC and start pumping more crude to save themselves.


This crash in Crude oil prices (courtsey Shale oli) is a masterpiece move from US. It takes care of your Russian, Venezuelan, Terroristy middle eastern (your supposed non-NATO Allies/Frenemies), Iranian,problem all at same time. And if you people could improve your tech and produce shale Oil at below 40 Dollars, you would do a great social service to non-muslim world by choking Jihad finance at source.

@LeveragedBuyout @SvenSvensonov

Between Saudi's attempt to protect market share, the pre-drilling of wells in the US in preparation for fracking should the oil price recover, and now this... it is a great day to be a member of the free world. The bad actors are going to start tearing themselves apart in their struggle to stop the bleeding. I agree, OPEC's back is broken.

 

[Vassnti]

Two problems I though China had already given Venezuela a 4 billion loan to do the same thing, hope they arent selling the same barrel of oil twice. The second at arround 90$ a barrel production cost for Orinoco heavy oil increasing production is only going to increase the loss they are making already with oil prices so low.

 

[Echo_419]

it's crazy isn't it?? if it isn't already bad enough Saudi Arabia is flooding the market with oil, now Iraq is doing the same. once and if sanctions are fully lifted from Iran they'll begin pumping oil into a already bloated market.

might as well say Venezuela produces 3 mmbd and exports 2.3mmbd so a doubling would be 6mmbd and export of 4.6mmbd by 2017/18.

Greatnews for India

Between Saudi's attempt to protect market share, the pre-drilling of wells in the US in preparation for fracking should the oil price recover, and now this... it is a great day to be a member of the free world. The bad actors are going to start tearing themselves apart in their struggle to stop the bleeding. I agree, OPEC's back is broken.

Brilliant move by the US