Juan Guaido will open Venezuela oil deals to private foreign companies - Polidicks

https://www.independent.co.uk/news/world/americas/juan-guaido-will-open-up-oil-deals-to-foreign-private-companies-a8763821.html?utm_source=reddit.com Venezuela’s government-in-waiting will allow foreign private oil companies a greater stake in joint ventures with its state-owned oil giant, Juan Guaido’s envoy to the US has said. Currently, Venezuela’s socialist government has requirements that Petroleos de Venezuela (PDVSA) keep a controlling stake in any joint ventures with other energy companies. But Carlos Vecchio, a representative for National Assembly leader Mr Guaido, who has been recognised by the US as the interim leader of Venezuela, told Bloomberg Mr Guaido's government would look to open up the economy to increase oil production. “The majority of the oil production that we want to increase will be with the private sector,” he said on Monday. Venezuela under Mr Guaido would honour all “legal” and “financial” debt, Mr Vecchio said, but suggested it may not honour debt agreements signed by the current regime under Nicolas Maduro in which the country pays creditors with oil.

Good. They'll need to inflow of cash to fix their fucked economy.

Agreed, before when the PDVSA owned the oil fields the people were getting a meager 100% of the revenue. With privatization they will get none of the revenue and multi-national corporations with no interest in the people will get it all!

What do you think their odds our of getting the true value of the oil if they sold it under these conditions? I have a suspicion that this deal might end up being more favorable for the US then Venezuela.

Great!!! An other reason to hate this guy and not searching for different techincally de facto the Interim President, after technically de jure the President/'Dictator' Maduro will be put down for Venezuela's future.

Gee, it's almost like they already solved this problem with a thing called royalties.

You're never going to get enough "royalties" to make a private owned oil industry more equitable for the society than a public one.

The more I read about Venezuela the more it seems like yet another a no-win situation. Guaido's parliamentary faction represents is this loose alliance of the revanchist right and center right selling itself as neoliberal to foreign audiences, in keeping with the theme of the time, and Maduro's executive faction is delusional ideologue and murderer. Everything just sucks right now, doesn't it?

Welcome to the crux of the matter. The US doesn't give a flying fuck about Venezuelan democracy or the plight of the Venezuelans. They don't care about the crimes of Maduro. All they care about is having a pliant South American government who lets multinationals gut the country of resources on the cheap. The entire outrage has been a convenient foil to mask this. The envoy's just telling them what they want to hear.

That's some traditional south american conservative galaxy brain logic right there. Get rid of state corruption by pawning national resources dirt cheap to foreign capital, so that instead of an ineficient source of public revenue you have no resources and no revenue.

how about you just remove the corrupt military heads appointed to run the pdvsa and reform its management, allowing it to return to striking deals with foreign companies while respecting the shared ownership of the resources. wait, he needs those very same corrupt military heads to oust muduro

it's almost as if history has shown us what happens every time we go down this route

So, reading up more on this, you start realizing that what they're offering was pretty much inevitable. If it didn't happen through privatization it would have happened through simply seizure by the foreign entities Maduro is in bed with, which would have equally resulted in PDVSA being fractured and in Venezuelan oil being taken from our hands with us not seeing a penny, due to the onerous debt Maduro is teethering on defaulting on with Russia and China. Privatization is bad, by all means, but understand the current situation: PDVSA is beyond broke, production is on a 70 year low, we can't even meet OPEC quotas, and according to current trends production will dip under 1mb this year. We have a brain drain we simply cannot revert, in no small part because Chavez fired 19000 skilled workers from PDVSA due to political reasons. PDVSA currently lacks any sort of workable management, they all have to be fired, they're all military men appointed by Maduro who have been personally responsible for a 20% dip in production just last year. Infrastructure is crumbling, and we don't even have enough tankers to satisfy the current demand. There's a very obvious problem here in that Venezuela needs money, it needs foreign investment and it needs it quick. It also needs to prevent that PDVSA is used for political purposes ever again, such as in 2001 when the oil strikes put the entire country on hold, or in 2002 onwards when the Lista Tascon was used to weed out opposition voters from the company. It needs skilled workers which are abroad and will not return in short notice. This was the way that Venezuela's oil production began, actually. In the 1970's, when PDVSA was created, it was formed by buying off Shell, Mobil and Standard Oil operations in the country. This can happen again in the long run, and it would more directly lead to a revitalization of the decimated Venezuelan economy than any attempt to bring PDVSA back to where it was with only what we have.

But oil is such a worn out scapegoat that I, personally, am tired of hearing about every time the United States orchestrates a regime change through unbelievable bloodshed!