Thursday, October 22, 2009

Cuban oil dependency: Venezuela's importance

Authors:
Luis Alberto López Rafaschieri and José Alberto López Rafaschieri
www.morochos.net

In another article we show that Venezuela is not a vital oil supplier to the U.S. economy. But if we want to know about a country truly in need of Venezuela's energy resources, we must direct our gaze toward Cuba.

To function, the weak Cuban economy must import about 120 000 barrels of crude daily, according to IEA. But fortunately for the Cuban government, since Chavez is in power, Venezuela sends to the communist island -under very favorable conditions for Cuba- an approximate of 100 000 barrels of oil per day. What represents 83% of the Castro regime's imported oil requirements.

Cuba is supposed to pay for this oil through a confusing barter that goes something like this: Venezuela exports the oil, in return Cuba sends physicians, then, Venezuela must pay to Cuba a salary in dollars for each Cuban doctor. And what Cuba calls for each physician is so high that in the end Venezuela owes money, without Cuba having to spend a single dollar.

Thus, given the high percentage of Cuban oil demand supplied by Venezuela, and the unusual conditions under which Cuba acquires Venezuelan oil, it makes more sense to talk about energy dependence in the Venezuela-Cuba relationship than in the case of Venezuela-USA.


Related articles:

- Venezuelan oil myth: The vital supplier

- The post-financial crisis: Oil with less risk?

- Defects of Chavez's electricity policy

4 comments:

  1. Do you have any sources?

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  2. A significant number of Cuban "technicians" are defecting each year, every day. They are being organized to help stiffen resistance and to take the battle back to Cuba! Valdes has not been demoted, inwhat way is there evidence of that? He was promoted from being titular older generation leader of Cubas G2to Satrap over colonized Venezuela. Valdes ensures the flow to Cuba of Venezuelan resources: oil, gold, diamonds, food, bandwidth, embargoed technology, dollars, Swiss Francs, and Euros, and Valdes is also required to maintain the country as a marshalling and training site for irregular forces they have given cedulas and citizenship to from allover the Middle East and Asia. It's a kind of phoenix rising from the ashes for a political-military philosophy--Marxist Leninism/bolshevism, whose own founder repudiatedits' prime tenets in his latter life. Valdes commands more troops,operatives, weapons and real estate than Cuba ever has had...Fidel jealously made many unsuccessful attempts to subvert and conquer the country through violence and terrorism. He succeeded with treasonous help from a charismatic half-educated moron and the huevo sin sal who has come after him. How do you feel now that your nation's gold reserves are in Havana? That Cuban satraps make all strategic decisions about resources,policy, and the end of democracy? My ancestor O'Leary never dreamed that would happen, and I am fairly certain the Bolivar never intended that his envisioned Gran Colombia would become Cubazuela>

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  3. Raoul sent Valdes to Venezuela to apply an old proven method and tool to a problem he and his brother had found very frustrating: howto eliminate democratic processes in an educated and relatively affluent society possessed of resources they strongly coveted and felt very desperate to control. Valdes is being relieved back home by newer blood, which Raoul is spinning as newer blood, more pragmatic, "progressive." It seems that influencers in my nation's government and wealthy elite have been convinced this signifies that Raoul is preparing to loosen controls and institute long needed reforms. It is untrue, as his police forces are actually increasing repression and oppression of dissidents and so-called undesirables,and widening the racial gap. this was the reason Raoul's daughter was permitted by the US State Department to recently travel in the US.That mistake, rest assured, will not be repeated.

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