Venezuela pledges to up oil exports to China

[hugolp]

http://www.google.com/hostednews/afp...3T1RgFgBSCpisg

Venezuela pledges to up oil exports to China

1 day ago

CARACAS (AFP) — President Hugo Chavez said that Venezuela will be capable of exporting three million barrels of crude oil a day to China, an eight-fold increase on current levels.

"In a few years Venezuela will reach the level of exporting up to three million barrels a day... we are going to have refineries there, just like we do in the United States," the leftist leader said during his weekly television address.

"Last year we topped 380,000 barrels a day and we have signed a deal to soon reach the one million mark."

During his last visit to Beijing in April Chavez discussed the possibility of constructing a refinery in the country, capable of processing 400,000 barrels at day.

Today the majority of Venezuela's vast oil reserves -- around 1.5 million barrels a day -- are destined for markets in the United States.

Chavez has frequently threatened to cut the supply of oil to the United States, but comentators say it provides vital revenue for his government.

Venezuela, which has seen oil prices drop sharply since September, plans to double its natural gas production by 2013, with an eye to exports markets.

[HOLLYWOOD]

POST from last September:

http://www.ronpaulforums.com/showthr...se#post1674608

TO China crude oil exports were 27,500 bpd in the first half of 2005

TO China crude oil exports were 70,000 bpd first half of 2006

TO China crude oil were 200,000 bpd first half of 2007

TO China crude oil exports Venezuela will be exporting 500,000 barrels of oil a day to China by 2009

That's a big increase in 4 years!

Venezuela's state-run energy company PDVSA announced South America's largest oil exporter shipped an average of 200,000 barrels per day of crude oil and byproducts to China so far in 2007, El Universal newspaper reported Tuesday.

While that amount pales in comparison to the nearly 1.4 million bpd of Venezuelan oil that was exported to the United States in July, China's exports have risen nearly three-fold since last year.

Erik Kreil, an international oil market analyst at the U.S. Energy Information Administration, noted that Venezuela's exports to China were 27,500 bpd day in the first half of 2005, the first full year Beijing began pursuing Venezuelan petroleum.

By the first half of 2006, Venezuelan oil exports reached 70,000 bpd.

Kreil and others attribute the increase to China's own growing demand for fuel, as well as Venezuela's desire to diversify its customer portfolio and reduce its dependency on the United States.

"But China can only take so much," Kreil told United Press International Tuesday. "The bottom line is there is only so much they can diversify away" from the United States.

Venezuelan President Hugo Chavez has made clear his intention to do just that, sparking some concerns the reduced output to the United States was in fact a policy decision.

In February, Venezuela's Foreign Ministry adopted a "take 'em or leave 'em" attitude toward the United States, suggesting its petroleum industry could survive without the billions of dollars in annual revenue from its largest customer.

"We are going to keep selling oil to North America because we are a serious country and we sell it to North American society," said Foreign Minister Nicolas Maduro earlier this week in response to remarks by U.S. officials. "(But) if they say they do not need it, well, let them stop buying it."

Venezuela supplies about 12 percent of the oil imported by the United States, making it Venezuela's largest customer. It is the No. 4 U.S. supplier. Venezuela provided discounted Heating oil to cities in northeatern US, yet the American wholesalers and retailers increased prices of that heating oil for a larger profit share. <=== here's the part that really sticks on me.

BEIJING (AP) - Venezuela will be exporting 500,000 barrels of oil a day to China within five years, President Hugo Chavez said Wednesday at the start of a trip aimed at forging stronger energy ties with China.

Chavez arrived in Beijing with plans to sign agreements on joint projects in petroleum, telecommunications, farming and railways that will significantly boost China's investment in Venezuela, the world's No. 5 oil exporter. He proposed an ambitious target plan under which Venezuela will almost quadruple sales to China, which wants access to Latin American energy supplies to fuel its booming economy.


http://www.canada.com/calgaryherald/...a-97da2cd3b5e5


http://english.people.com.cn/200607/...13_282729.html

http://www.sunjournal.com/biz/20060824049.php

[Zippyjuan]

Chavez needs the money- China needs the oil. Venezuelan oil is very thick and needs lots of refining. If I remember correctly, most of their oil is actually processed in the US- they have limited capacity to handle it themselves. Not sure- I may be wrong on this. Half their government budget is financed by oil. He sells oil at below cost to many friendly countries. The US buys about 60% of their oil output. They have also inked refinery deals with Argentina and Equador. http://www.cfr.org/publication/12089/

Iran was going to help build a refinery in Venezuela too. Iran is another country which cannot process most of their oil- they ship it to other countries to be processed and have to import things like gasoline. http://www.spacedaily.com/reports/Ir...Venezuela.html