Venezuela Cuts Oil Output as US Embargo Halts Exports – RedState
By fully opening the tap on Venezuelan news, this is what emerges: the oil extraction organization controlled by the Venezuelan government, Petroleos de Venezuela, SA. (PDVSA) must reduce its oil production. For what? Because they are running out of storage space and their exports have been cut off by the Trump administration and the War Department.
Venezuela’s state oil company PDVSA has started cutting crude production because it is running out of storage capacity due to the ongoing U.S. oil blockade that has reduced exports to zero, increasing pressure on an interim government trying to cling to power in the face of U.S. threats of increased military action.
Caracas is in political crisis under an interim government after the capture of President Nicolas Maduro and his wife by US forces on Saturday. The OPEC country’s oil exports, its main source of income, are now at a standstill following the US blockade of sanctioned tankers and the seizure of two oil shipments last month.
Chevron’s shipments to the United States were an exception, continuing to flow because the company has a Washington license for its operations. But even those have stopped since Thursday, shipping data showed Sunday.
There are a few things to note in all of this; First, Secretary of State Marco Rubio might just raise his fist and shout, “That’s what I called!” Earlier Sunday, we saw the Secretary speaking with George Stephanopoulos, anchor of ABC News’ This Week, and the Secretary predicted precisely this:
Learn more: Watch Secretary of State Marco Rubio speak on Venezuela
The secretary said:
We have already started to use (leverage on Venezuela’s oil trade). You can see where they are lacking in storage capacity.
Here’s the other thing: Venezuela is not, as the Post article says, “…in political crisis under an interim government.” There is no interim government; not yet, anyway. There won’t be until, ideally, the real winner of Venezuela’s 2024 elections, Edmundo González Urrutia, takes office – or until new elections are held, and this time, hopefully, honest ones. What remains in Caracas is not and never will be a legitimate interim government. These are the remains of a dictatorial regime that remained in power by force and fraud, the old tools of dictators everywhere.
No agreement can be reached with the survivors of the Maduro regime.
Learn more: Salvadoran President Bukele Trolls Maduro After Arrest; Orders “No More Margaritas” for Senator Van Hollen
Thus, the oil taps in Venezuela are closed for the moment.
As part of his announcement of Maduro’s detention and a U.S.-supervised government transition, President Trump said Saturday that an “oil embargo” was in effect against the country.
PDVSA’s move includes shutting down oil fields or groups of wells as onshore inventories rise and the company runs out of diluents to blend heavy Venezuelan crude for shipment.
The company has requested production cuts from joint ventures including China National Petroleum Corp.’s Petrolera Sinovensa, Chevron’s Petropiar, Petroboscan and Petromonagas, the sources said. Petromangas, previously operated by PDVSA and Russian state-owned Roszarubezhneft, is now managed solely by PDVSA.
So, while chasing an illegal regime out of a South American country, the Trump administration managed to put a thumb in the eye of Russia and China, and it’s worth it.
What we can really hope to come out of all this is whoever takes over the remnants of Maduro’s power junta are removed from power is that Venezuela’s entire oil and gas industry should once again be a private sector activity. PDVSA is a product of the Venezuelan government, even before Hugo Chavez, formed after the formal nationalization of Venezuela’s oil and gas industry in 1976 under then-president Carlos Andrés Pérez, better known as El Gocho,or “The Pig”. Draw whatever conclusions you like. This is a mistake that can and must be remedied, and it is one of the first acts of a new government.
Finally, there is this:
PDVSA and CNPC did not immediately respond to requests for comment.
You don’t say.
Editor’s Note: Do you like RedState’s conservative reporting that brings you the best reporting and commentary on international affairs? Support our work so we can continue to bring you the truth.
Join RedState VIP and use promo code STRUGGLE to benefit from 60% off your membership.
