Venezuela’s oil fields are extra heavy crude, which makes for costly extraction and production. It needs the price to be around $70 a barrel to be worth extracting. With oil prices this low, Venezuela will be unable to sustain the massive social programs it established during the recent fat years. Expect more rhetoric and bad behavior from Mr. Chavez.
Crude oil futures are at $47.21 as of this writing. That is the lowest they have been since some time in 2004, I believe (without checking all the details).
Note that the Democrats are NOT calling for hearings on who's driving the price of gasoline DOWN. Will they have hearings if, in the future, the oil companies report "obscene losses", I wonder?
I am certain of one thing, however: The Democrats and their liberal cronies will make every effort to assure that some form of taxation or scarcity or a combination of the two will force gasoline prices back up. One thing liberals cannot countenance is an un-crisis. Especially if it means anyone (but them) feels comfortable driving luxury cars and SUVs.
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Venezuela’s oil fields are extra heavy crude, which makes for costly extraction and production. It needs the price to be around $70 a barrel to be worth extracting. With oil prices this low, Venezuela will be unable to sustain the massive social programs it established during the recent fat years. Expect more rhetoric and bad behavior from Mr. Chavez.
Crude oil futures are at $47.21 as of this writing. That is the lowest they have been since some time in 2004, I believe (without checking all the details).
Note that the Democrats are NOT calling for hearings on who's driving the price of gasoline DOWN. Will they have hearings if, in the future, the oil companies report "obscene losses", I wonder?
I am certain of one thing, however: The Democrats and their liberal cronies will make every effort to assure that some form of taxation or scarcity or a combination of the two will force gasoline prices back up. One thing liberals cannot countenance is an un-crisis. Especially if it means anyone (but them) feels comfortable driving luxury cars and SUVs.
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