Venezeula going over the cliff

[dan_s]

Jobs at PDVSA were once coveted for their generous salaries and benefits, including cheap credit for housing. Now, many PDVSA workers can’t feed their families on wages that amount to a handful of U.S. dollars a month. Over 25,000 workers have quit. Most leaving the country.

Read: https://www.oilandgas360.com/under-mili ... a-stampede

[dan_s]

Venezuela’s oil refineries at 31 percent capacity.
Venezuela’s oil refineries operated at just 31 percent of their combined 1.62 million-barrel-per-day capacity in the first quarter, according to Reuters. PDVSA’s refineries suffer from poor maintenance, a lack of spare parts, a lack of cash, and a declining supply of crude. Meanwhile, Reuters reports that PDVSA is suffering from mass resignations, with workers walking off the job because of low wages and unsafe working conditions. About 25,000 workers quit between January 2017 and January 2018.

This is good news for U.S. refiners as it increases demand (already high) for transportation fuels in South America. The U.S. exports ~6 million barrels per day of light oil and refined products.

[dan_s]

Today: The reported arrest of two Chevron Corp. (CVX) executives in OPEC-member Venezuela comes in the midst of the nation's anticorruption crackdown.

"The arrests in Venezuela could spell more turmoil, setting back any hope for a rebound in their oil production," said Phil Flynn, senior market analyst at Price Futures Group.

[John.A.Hunt]

No surprise after the arrests, Chevron, Total, Statoil, Repsol evacuate staff.
http://fortune.com/2017/08/07/chevron-t ... venezuela/