Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.
Energy Minister Rafael Ramirez insisted that Venezuela, the world’s fifth-largest oil exporter, is producing 3.1 million barrels of crude a day, exceeding its OPEC quota of 2.9 million barrels per day. It also provides about 14% of US oil supplies.
Private analysts have suggested that Venezuela has inflated production figures since an oil workers strike in December 2002-February 2003 that failed to oust President Hugo Chavez.
Quote:
Analysts have said that production is closer to 2.5 million barrels a day. They cite alleged lack of investment after the strike and lost expertise.
I'm pretty sure that Ramirez is lying. This is more likely a political statement, to make people believe that the venezuelan oil industry is under control.
Right now, PDVSA, the state-owned oil company, is a big black box, and the people now in management is working with political goals in mind, completely loyal to the government. Also, they are not as experienced as the people that used to manage the company.
So don't blame the OPEC; just blame the current venezuelan regime. And for the real production numbers, it's anybody's guess... _________________ Regards,
Arraitz
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