IRONY: Now America Is Supplying OPEC With Oil

Getty Images

Getty Images

Venezuela, a member of the Organization of Petroleum Exporting Countries (OPEC), has been forced by its failing economy to accept its first shipment of American crude oil Sunday despite having some of the world’s largest petroleum reserves.

Venezuela is buying American oil to supplement its own supply as the country faces total economic and social collapse. American oil is cheap by global standards and President Barack Obama recently signed legislation lifting a ban on oil exports.

“They’re desperate, they’re really desperate,” Carl Larry, head of oil and gas for the market research company Frost & Sullivan LP, told Bloomberg. “It’s well known PDVSA [Venezuela’s state oil company] has had issues running their refineries in recent years. It really raises a red flag about their economic situation and where their oil company is situated.”

Venezuela’s oil-fueled economy is now on the verge of complete breakdown. The country’s inflation rate is more than 808 percent, according to Forbes — and the country’s economic czar doesn’t even believe in inflation. Venezuela is essentially bankrupt and faces massive shortages of food and many consumers products. To make things even worse, Venezuela is widely regarded as one of the most corrupt countries on Earth and has the world’s second-highest murder rate.

Venezuela’s socialist government was defeated in legislative elections for the first time in 17 years in December, but the country’s socialist stacked Supreme Court has attempted to invalidate the election. The country’s government is extremely divided, but the president remains committed to socialist economic policies.

America is now exporting crude oil after effectively repealing the 1975 Energy Policy and Conservation Act in December. The original purpose of the act was to reduce the impact of potential oil embargoes by OPEC. Exporting oil is expected to boost U.S. gross domestic product (GDP) by $38 billion, reduce the trade deficit by $22 billion and add 300,000 new jobs by 2020, according to another study by ICF International and the American Petroleum Institute.

In 2015, Venezuela imported roughly 40,000 barrels a day from Russia, Nigeria and Angola. Venezuela was the 12th largest producer of crude oil in 2014, according to the Energy Information Administration.

America surpassed Russia early last year as the world’s largest and fastest-growing producer of oil and natural gas. U.S. oil exports could also reduce the influence of unstable petrostates like Russia, Iran and Saudi Arabia.

Posted by The Daily Caller.



2 Comments on "IRONY: Now America Is Supplying OPEC With Oil"

  1. Enjoy it as long as you can, soon the shale oil and gas companies will go broke and the USA will start to import again

  2. Artemio Reategui | February 10, 2016 at 5:57 pm | Reply

    It is not ironyc; this is a result of seventeen corrupt social government; including Cuba, Brasil; Argentina; Bolivia, Ecuador; Nicaragua and some other countries in Asia, Africa and Rusia.

    Common poor people from Venezuela are the most detrimental; Hugo Rafael Chávez Frias as a redentor will not appear neither as a bird to help at president Maduro. There is no money to give people because they spent more than 140M MM USD from the reserves fund to win election buying votes.

    They have divided venezuelan people between comunist and the others.

    Hoping that this people will stand up to build a better country soon.

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