In Quito, Ecuador a while back, while providing a risk assessment workshop for officials from Latin American oil companies, I was able to spend several days in private conversations with Venezuela’s Minister of Oil.
Now heading up the national oil company PDVSA, he was considered one of the most knowledgeable and able of the region’s execs at the time.
During our talks, he shared some useful advice on how to integrate the national oil company budgetary requirements with the vortexes of national politics.
At one point, over a late-night drink, he confided the following: “You are always in a no-win situation when it comes to insulating working capital from central budgets,” he declared. “You have to provide for the next round of drilling. For that, proceeds from sales must be segregated. But the politicians can only see buying the next election.”
We were to renew the conversation later when I was scheduled to provide a similar seminar at the invitation of PDVSA.
However, by the time that was to take place, the domestic civil strife in Venezuela had intensified.
The government admitted they could not provide sufficient security for my appearance in the eastern, oil-producing region where the meeting was to take place, while the U.S. Department of State chimed in advising that I should not go.
And yesterday, my “drinking colleague,” – or Eulogio Del Pino, as the world knows him – was arrested at his home in Caracas.
This is one of the latest in a series of arrests orchestrated by embattled President Nicolas Maduro.
These arrests will only further fuel the financial crisis in the country, constrict access to the working capital needed to drill for oil, and exacerbate PDVSA’s production decline.
That means a large chunk of the almost two million barrels of oil that Venezuela supplies every day could disappear…
And send oil and gasoline prices skyrocketing with it when they do.
Fortunately, a mysterious “superfuel” that was recently discovered already has experts predicting it will eventually replace gasoline as the primary source of fuel.
That’s because, based on my estimates, it could be 1,693-times more powerful than the gasoline that runs your car.
Ever since it was first discovered, one of the only places on earth known to contain high accumulations of this superfuel was 13,000 feet up in the Andes Mountains.
But I’ve just uncovered a tiny miner that has stumbled upon a treasure trove of it.