Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Zorro

(15,740 posts)
Thu Jan 25, 2018, 09:35 PM Jan 2018

Corporate America's nightmare in Venezuela is getting worse

Venezuela has more crude oil than any other nation. But the crisis there is so bad that even oil companies are losing big money.

The world's largest oil service provider, Schlumberger, announced Friday that it wrote down $938 million of its holdings in Venezuela. It already took a $460 million loss last year because of unpaid bills from the Venezuelan government and its state-run oil company.

Schlumberger (SLB) makes equipment for oil companies and provides them expertise and technology. The company says it will stay in Venezuela and try to get its money back. But that could be difficult.

The country owes almost $60 billion to contractors and suppliers like Schlumberger, according to an analysis published by Harvard Law School, and it already defaulted on some of its bonds late last year.

http://money.cnn.com/2018/01/19/news/economy/venezuela-oil-schlumberger/index.html

5 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Corporate America's nightmare in Venezuela is getting worse (Original Post) Zorro Jan 2018 OP
the solution is more domestic alternative energy and the oil cos can suck up their losses which msongs Jan 2018 #1
Venezuela has huge hydroelectric resources GatoGordo Jan 2018 #3
Cheap oil is addictive hack89 Jan 2018 #4
Its meaningless GatoGordo Jan 2018 #5
The smart money is already out. It can't get worse. GatoGordo Jan 2018 #2

msongs

(67,413 posts)
1. the solution is more domestic alternative energy and the oil cos can suck up their losses which
Thu Jan 25, 2018, 10:15 PM
Jan 2018

they will not likely actually have since most everything they do is write offs anyway

 

GatoGordo

(2,412 posts)
3. Venezuela has huge hydroelectric resources
Sun Jan 28, 2018, 03:01 PM
Jan 2018

but Chavismo hasn't kept up on maintenance. The national electric company recently went Tango Uniform, and rolling blackouts are the new normal.

hack89

(39,171 posts)
4. Cheap oil is addictive
Tue Jan 30, 2018, 03:20 PM
Jan 2018

there will be riots if, for example, gasoline subsidies were abolished and people in VZ had to pay for the actual cost of fuel.

Besides, just how will they develop and deploy alternate forms of energy without foreign capital? They are bankrupt - they can't even provide the basics of food, medicine and electricity.

 

GatoGordo

(2,412 posts)
5. Its meaningless
Tue Jan 30, 2018, 03:31 PM
Jan 2018

There are very few autos on the streets, as there are

no tires
no spare parts
no motor oil
no new cars

thieves are draining oil out of parked cars.
stealing wheels off of parked cars.
buses don't run. 85% of them are out of commission. No parts, no oil (see above)
trains don't run, as the entire infrastructure is crumbling

that gas costs about 18 cents to fill your tank is meaningless if the car can't be used.

 

GatoGordo

(2,412 posts)
2. The smart money is already out. It can't get worse.
Sun Jan 28, 2018, 02:59 PM
Jan 2018

Schlumberger and Halliburton are long gone. Ergo, there is very little keeping whatever PdVSA has going. Years ago (2003), Chavez fired all the professional Venezuelan oil workers and replaced them with Chavista lackeys. When these jobsworths proved to be incapable, Chavez brought in Schlumberger and Halliburton. They haven't done a days work in Venezuela in about 18 months. Just a skeleton crew keeping an office open.

Latest Discussions»Region Forums»Latin America»Corporate America's night...