Posted on 05/28/2017 1:04:09 PM PDT by 2ndDivisionVet
“”The King might think it was rude, and even the Saudis don’t have enough money to put much of a dent in the $20T debt that Obama piled on our children.””
I thought of that but heck - Trump gets accused of all manner of improprieties so every little bit might help - even a skosh.
Okay, wait a minute. A bit of confusion here.
Not all oil imported to the US is burned here. Particularly for Venezuela. They have very heavy, viscous oil. The Gulf Coast refineries can handle it but other refineries often cannot. So Venezuela does indeed import oil to the US, but the products from refining mostly just go back out.
There’s another subtle item you’re likely not aware of. There is an item called “refinery gain”. Almost no other country than the US has this, because not many do as much refining. It works like this. Crude arrives and it has a certain density and thus, volume. A barrel is 42 gallons, by definition.
When you refine it — that is, heat it up and extract its constituent parts (gasoline, diesel, kerosene) the total volume of these less dense liquids exceed the volume of crude oil that flowed into the refinery. So X barrels of liquid come in, and X plus 30% come out.
The EIA counts this increase as “oil production”. I swear to God. Look up Refinery Gain. If you bring in 10 million barrels per day, an imaginary additional amount is claimed to have been “produced” — as if it came out of US territory oil wells.
Venezuela’s very dense oil has this effect in it. Big refinery gain, and even though the crude is foreign sourced, the refinery gain is counted as US oil production.
Bizarre. True.
#25 “My first wife sold jewelry to Arab potentates.”
Ah you must have a harem : )
Yes Owen,I am familiar with oil in vs. product out “gain”. Very infact.
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The greater, and perhaps finer point was that if the USA refining companies, and the foreign owned,but located in the USA didn’t run their crude they wouldn’t have X amount of money to further fund their failed communist (by all accounts) social experiment the world still calls Venezuela.
Oh heck, I didn’t even notice your name. Ya, you would know about refinery gain and how it corrupts US production claims.
As for the evils of Venezuela, I’ll get controversial and wonder about “success”. You do realize the Fed created $4.1 Trillion out of nothingness over a 6 yr period. 25% of GDP. The Bank of Japan (BOJ) is still doing that as is the European Central Bank (ECB). Currencies don’t collapse because all the CBs cooperate to keep the wheels turning. My point being:
The correct measure of “failure” or “success” cannot be money. Money gets created on a whim. How can that be a valid measure. It’s not Physics or anything real. Quoting things like GDP . . . that’s measured in money. Has to be bogus.
The only possible legitimate measure would be population growth. Venezuela has food problems, but last I heard they are attacking those primarily. As for money, their national debt is about 50% of GDP, and that GDP is shrinking so that’s even harder to achieve 50%. This is far superior to the US’s 100% of GDP debt.
I don’t want to be pushed into a corner as the defender of Venezuela. The people are not happy there. But aligning themselves into a configuration where the become slaves of US banks can’t be a good thing. This would just try to make them Greece, with oil.
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