Tag Archives: oil

May
31
2011
Posted by
editor
Comments

In Case You Missed It… Differing views on U.S.-imposed sanctions on Venezuela

Below are two differing views on the sanctions the U.S. recently imposed on Venezuela’s PDVSA.

US Oil Sanctions Against Venezuela May End Up Helping Chavez
The Wall Street Journal
By Ezequiel Minaya and Kejal Vyas
May 30, 2011

U.S. sanctions against Venezuela’s state oil company may benefit rather than hurt President Hugo Chavez’s government by providing fuel for anti-U.S. rhetoric as the leftist leader rallies supporters ahead of next year’s presidential elections. Slamming Washington is a timeworn strategy for winning votes in many parts of Latin America, and it could provide a boost to the re-election bid by Chavez, who in his 12 years in power has become the region’s loudest U.S. critic. “Chavez is using [the sanctions] as a weapon to consolidate his base, to put the opposition in an uncomfortable situation and to rally support for his election campaign,” said Anibal Romero, a Caracas-based retired professor of political science. While analysts don’t expect the recent sanctions to have much effect on Petroleos de Venezuela SA, or PdVSA, as the state oil company is known, the reaction from the Chavez government has generated unease among holders of Venezuelan debt, weighing on bonds trading in New York in recent days.

Read more…

Hugo Chavez in the U.S. Crosshairs
Foreign Policy
By José R. Cárdenas
May 27, 2011

Finally, Hugo Chavez is being held accountable for his reckless efforts to aid and abet Iran’s illegal pursuit of a nuclear capability and evasion of international sanctions. This week, the Obama administration announced it was imposing sanctions on Venezuela’s state oil company PDVSA and the Venezuelan Military Industries Company CAVIM for their illicit dealings with Iran. The sanctions are admittedly minimal, but one hopes they signal a new vigor on the part of the administration towards further exposing and countering the nefarious Venezuelan-Iran axis.

Read more…

 
May
27
2011
Posted by
editor
Comments

In Case You Missed It… Articles Roundup Week of 5/27/11

In this week’s roundup…The United States enforces economic sanctions on Venezuela’s state owned oil company, PDVSA, for violations to the restrictions imposed on trade with Iran, prompting a war of words between Caracas and Washington; and Venezuela to acquire space age reconnaissance technology with the help of China by 2012.

U.S. to sanction Venezuela’s PDVSA on Iran trade: sources, Reuters

The United States will sanction Venezuela’s state oil company PDVSA on Tuesday for dealing with Iran in violation of a U.S. ban on such trade, sources briefed on the matter told Reuters. Deputy Secretary of State James Steinberg was expected to announce the sanctions, which could include tough penalties such as being banned from the U.S. financial system or being denied U.S. contracts, the sources said.

Venezuela Official Says US Sanctions To Have Little Impact On Oil Exports, The Wall Street Journal

Venezuelan Foreign Minister Nicolas Maduro Thursday downplayed the possibility that the country would cut oil shipments to the U.S. because of sanctions slapped on state oil giant Petroleos de Venezuela by Washington.

OPINION: What can U.S. sanctions on Iran do?, Politico

After months of being eclipsed in headlines by the Arab spring, the Iranian nuclear front came alive again Monday. For the first time, the United States imposed sanctions on companies selling gasoline to Iran.

Venezuela condemns US sanctions against state oil firm, BBC News

The Venezuelan government has condemned US sanctions against state oil company PDVSA for trading with Iran. The moves were “imperialist aggression”, Venezuelan Foreign Minister Nicolas Maduro said. Washington imposed the sanctions on PDVSA and six other firms on Tuesday as part of a campaign to tighten sanctions on Iran over its nuclear program.

Mack: The Next Step Will Be Boycotting CITGO, PR Newswire

Responding to Hugo Chavez’s threats against the U.S. for taking action to eliminate Chavez’s support of the Iranian terrorist regime, Chairman of the Western hemisphere Subcommittee Connie Mack (FL-14) made the following statement: “The insulting and arrogant comments of the Chavez government in response to the U.S. which finally called out Venezuela for aiding Iran, by illegally selling prohibited materials, is unacceptable.

Venezuela threatens to interrupt US oil supply, Christian Science Monitor

Maduro threatened to interrupt US oil supply after Washington placed sanctions on the Venezuelan state oil company, this week. Venezuela’s foreign minister warned late Tuesday that it could no longer guarantee regular oil shipments to the United States after Washington placed sanctions on the Venezuelan state oil company, Petroleos de Venezuela SA (PDVSA), this week. The spat underscores long-running tensions over what Venezuelan President Hugo Chávez sees as America’s disproportionate, unjust exercise of power on the world stage.

Venezuela, China to launch satellite next year, AFP

Venezuela and China will develop an observation satellite to be built in Asia and launched from South America in 2012, according to Venezuela’s science and technology minister. Ricardo Menendez said Thursday that the earth-observation satellite, to be built at a cost of $140 million, would be used to monitor troop movements and illegal mining as well as study climate change and the environment.

 
May
25
2011
Posted by
editor
Comments

U.S. State Department Fires off Warning Shot to Venezuela: Imposes Sanctions on PDVSA

Yesterday, in a shot across the bow at the Venezuelan government the U.S. State Department sanctioned seven foreign companies that it deemed in direct violation of international agreements over Iran. Among those listed is Venezuela’s state-owned oil company, Petroleos de Venezuela, S.A. (PDVSA).  “By imposing these sanctions, we’re sending a clear message to companies around the world:  Those who continue to irresponsibly support Iran’s energy sector or help facilitate Iran’s efforts to evade U.S. sanctions will face significant consequences,” Deputy Secretary of State James Steinberg explained in the announcement.

The sanctions prohibit PDVSA from gaining access to financing from U.S. financial institutions and make U.S. government contracts inaccessible. Notably, however, it does not impact Venezuelan oil exports to the U.S. and exempts PDVSA subsidiaries, mainly CITGO, from any sanctions. Steinberg said the Obama administration had carefully considered any affect on oil markets before making the decision.  U.S. Rep. Connie Mack, a Florida Republican who has been pushing for sanctions against the South American country, said he thinks they are “not going to have an immediate, drastic effect” on Venezuela’s petroleum industry or weaken Chávez’s government. [But it’s] a step in the right direction,” he added.  U.S. Senator Richard Lugar (R-IN), ranking member of the Senate Foreign Affairs Committee,  welcomed the announcement saying “that the Venezuelan government is not likely to back away from these relationships [with Iran] without more explicit international exposure and action.”

The reaction from Venezuela was predictable. Its Foreign Minister Nicolas Maduro warned that given these measures he could not guarantee regular shipments to the U.S., and that the Chávez government was currently evaluating proposals in response. These are likely empty threats that the Chávez government will not follow through on given the significant revenues it receives from its oil sales to America.  Shipments from Venezuela currently account for about 10 percent of all oil imports to the U.S. and 40% of the South American country’s oil exports.

These are the first sanctions imposed by the United States for refined petroleum products under the Iran Sanctions Act since it was amended last year.  According to reports, PDVSA has delivered at least two cargoes of refined petroleum products to Iran between December 2010 and March 2011, worth approximately $50 million.