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Author
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Topic: Energy Crisis? Venezuela gas is cheaper than water!
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Wildfire532FB
CAFords OG
Member # 1482
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posted
 
 
CARACAS, Venezuela (Reuters) - Taxi driver Jaime Tinoco works the streets of Caracas in a 1976 Chevy Nova that guzzles 19 gallons (72 liters) of gas a day. But he doesn't worry about fuel efficiency -- filling his tank costs just
$2.30.
While U.S. consumers struggle with soaring energy prices, Venezuela's gas is now the world's cheapest at 12 cents a gallon and Washington's regional foe, President Hugo Chavez, vows to maintain subsidies that keep fuel dirt-cheap.
"Those gringos have everything -- so why does their gas cost so much?" asked Tinoco between chuckles as he navigated a midday traffic jam. "Don't they have oil reserves?"
Chavez, a self-proclaimed socialist and critic of
President Bush, has even begun subsidizing fuel for poor U.S. neighborhoods as U.S. consumers brace for average summer gas prices of $2.71 a gallon -- 34 cents higher than last summer.
In Venezuela, the world's No. 5 oil exporter, drivers fill their tanks for less than the price of a cheap breakfast, and love to point out that gasoline costs less than mineral water.
The nation's gasoline is now the world's cheapest, according to an
International Monetary Fund report released in April that shows Venezuelan gas prices as about a third of those in oil-producing giant Saudi Arabia.
Shiny SUVs and rusty 1970s-era sedans share the streets of Venezuelan cities as drivers shrug off fuel costs.
Low-priced fuel is considered a birthright in Venezuela, which sells 1.2 million barrels per day of oil to the United States -- the world's biggest gas guzzler.
"Gasoline should stay cheap the way it is, that's why we have oil in Venezuela," said Maria Rosa Pinero, 55, a housewife, filling up a Volkswagen Gol at a gas station in eastern Caracas.
Chavez has extended Venezuela's fuel subsidy to poor Americans through a well-publicized jab at the U.S. government that offers 40 percent discounts on heating oil distributed by Venezuelan-owned refiner Citgo.
Flush with cash from high oil revenues, Chavez has also shored up regional alliances by providing low-priced fuel to Central American and Caribbean nations he says have been snubbed by the United States.
'HOOD ROBIN' SUBSIDY
Venezuela's gas subsidy is the subject of endless grumbling by economists who say it promotes consumer waste and costs the state billions of dollars in lost revenue.
Critics say the subsidy largely benefits middle and upper-class vehicle owners at the expense of government income that could be spent on the poor.
"They call it the 'Hood Robin' subsidy," said Jose Luis Cordeiro, a petroleum engineer who writes about energy issues. "Instead of stealing from the rich to give to the poor, it's the opposite."
He estimates Venezuela would have taken in at least an additional $8 billion last year -- almost 8 percent of the nation's
GDP -- if Venezuelans had paid market rates for fuel.
The subsidy also encourages rampant fuel smuggling to neighboring Colombia and leads to huge lines of Brazilian drivers waiting to fill up along the southern border.
But past efforts to raise gas prices have not gone well. Authorities in 1989 raised fuel prices at the height of a recession, leading to three days of rioting during which at least 300 people were killed. Human rights groups say troops may have killed several thousand people.
The event marked a turning point in Venezuelan history, and served as inspiration for Chavez -- at the time a young army officer -- to lead a coup attempt three years later. The coup failed but helped propel Chavez into the presidency in 1998.
Chavez has maintained popularity by channeling oil revenues toward social programs for the poor, and has often criticized U.S. dependence on cheap gasoline. Washington says he is using his oil wealth to threaten regional democracy.
At Venezuelan gas stations, however, there are few complaints about low-cost fuel or fuel efficiency.
"People buy a car because it's comfortable or because it's big," said Isidro Rodriguez, 30, an accountant, as he filled up a new 4-wheel-drive Ford in southern Caracas. "It's not for the price of fuel, because that's never been a problem."
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Posts: 17578 | From: 530 | Registered: Jun 2002
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98slowhoe 'FIFTYLX'
Uncle Frank
Member # 895
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posted
WOW, thats all I have to say. It has never maid much sense to me why its like that. But on the other hand how much money do they get paid compared to americans? Whats the inflation difference compared to America?
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AKA Franky Freaking 5 liter
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Posts: 4206 | From: Folsom | Registered: Feb 2002
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CLEEN 50
CAFords OG
Member # 5867
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posted
Have you heard that in Brazil they are using ethanol for gas made from the sugar cane fields. ![[Eek!]](eek.gif) ![[worship]](graemlins/worship.gif) The US is trying to find out if it would work over here. Brazil is one of the only countries that does not buy oil from oversees. if this works, the oil industry would plummet
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91 GT
(cafords reg date: 6/02)
Posts: 2534 | From: Peninsula | Registered: Jul 2005
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TRIXSNK
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Member # 2844
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posted
quote:
Originally posted by 98slowhoe 'FIFTYLX':
WOW, thats all I have to say. It has never maid much sense to me why its like that. But on the other hand how much money do they get paid compared to americans? Whats the inflation difference compared to America?
When i hear stuff like this i ask myself how is the average persons quality of life over there in comparison to ours??
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9 Sec EVO 9 is GONE!
New project in the works.......
Posts: 3740 | From: Bay Area | Registered: May 2003
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Wildfire532FB
CAFords OG
Member # 1482
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posted
Well since that taxi driver was driving in a traffic jam it sounds like a lot of people can afford cars.
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Posts: 17578 | From: 530 | Registered: Jun 2002
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onesicklx
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Member # 285
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posted
venezuela is a oil producing country, so it does not surprise me...
Posts: 1955 | From: san jose, CA | Registered: Jun 2001
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2stangs69-91
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Member # 1951
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posted
The USA is a oil producing country ![[Frown]](frown.gif)
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69 Mustang on hold
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Posts: 3711 | From: Redding | Registered: Oct 2002
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FoRdGiRl
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Member # 6279
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posted
I SAW TWO DIFFRENT SHOWS ABOUT THAT AND ONE AWHILE BACK HOPEFULLY WE GET THAT GOING OUT HERE SOON BC I KEEP HEARING PEOPLE SAY GAS IS GONNA BE LIKE 4 OR 5 DOLLARS SOON AND THATS ![[BS flag]](graemlins/bs_flag.gif) AND THEN WE WILL ALL HAVE TO REALLY GET HONDAS OR SOMETHING
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Creativity is allowing yourself to make mistakes. Art is knowing which ones to keep.
Posts: 1881 | From: rescue | Registered: Dec 2005
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98slowhoe 'FIFTYLX'
Uncle Frank
Member # 895
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posted
quote:
Originally posted by 2stangs69-91:
The USA is a oil producing country
Producing it for who?
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AKA Franky Freaking 5 liter
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Posts: 4206 | From: Folsom | Registered: Feb 2002
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5OHS5OH
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Member # 4665
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posted
quote:
Have you heard that in Brazil they are using ethanol for gas made from the sugar cane fields. The US is trying to find out if it would work over here. Brazil is one of the only countries that does not buy oil from oversees. if this works, the oil industry would plummet
It would work over here. Nothing has to be changed to our cars or pumps. What wouldn't work is the giant oil companies going along with it. If you saw ethanol plants starting to open to produce, the oil companies would make the price of gas plummet and cause the ethanol plants to shut down. Then, up go the prices. I don't complain about the prices though, I could always walk to work. 58 miles ![[Mad]](mad.gif)
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89 Convertable GT
BBK Headers, cai
Posts: 1044 | From: San Bruno | Registered: Jul 2004
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Wildfire532FB
CAFords OG
Member # 1482
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posted
quote:
Originally posted by FoRdGiRl:
I SAW TWO DIFFRENT SHOWS ABOUT THAT AND ONE AWHILE BACK HOPEFULLY WE GET THAT GOING OUT HERE SOON BC I KEEP HEARING PEOPLE SAY GAS IS GONNA BE LIKE 4 OR 5 DOLLARS SOON AND THATS AND THEN WE WILL ALL HAVE TO REALLY GET HONDAS OR SOMETHING
Its going to be 4 dollars a gallon this summer.
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Posts: 17578 | From: 530 | Registered: Jun 2002
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DLo
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Member # 6133
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posted
12 cents a gallon! I remember when I thought the hike to $1.50 was expensive. When is the US going to go for alternative solutions? I thought I read somewhere that if the prices go high enough, the US will start goin to Canada for oil?
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94 GT
Posts: 1876 | From: Bay Area, CA | Registered: Oct 2005
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DRIVINFST
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Member # 2430
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posted
Simple supply and demand. Venezuela is an oil rich producing nation with only a population of 25.3 million people. US buys its oil and imports it over 80% of it and we have 295.7 million people. See the difference? The US has only 5% of the worlds population, but consumes 25% of the worlds oil. I say we use as much as we want, but be prepared to pay for it. It is how our economy works. People should just quit bitching about it, it won't do a damn thing about it.
[ May 11, 2006, 11:26 PM: Message edited by: DRIVINFST ]
Posts: 555 | From: San Jose, CA | Registered: Feb 2003
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92stangLX
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Member # 3252
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posted
quote:
Originally posted by CLEEN 50:
Have you heard that in Brazil they are using ethanol for gas made from the sugar cane fields. The US is trying to find out if it would work over here. Brazil is one of the only countries that does not buy oil from oversees. if this works, the oil industry would plummet
Ethanol.. what a concept. It's been around for a long time even in the US but never caught on here. They are actually starting to blend ethanol into gas now instead of the MTBE bullshit. Ironically they are blaming the rising gas prices (in part) on an ethanol shortage
What will they come up with next ![[Roll Eyes]](rolleyes.gif)
Check this shit out http://www.svo-kit.com/technology.php
Posts: 5302 | From: San Francisco | Registered: Sep 2003
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CDT
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Member # 5004
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posted
quote:
Originally posted by 5OHS5OH:
quote:
Have you heard that in Brazil they are using ethanol for gas made from the sugar cane fields. The US is trying to find out if it would work over here. Brazil is one of the only countries that does not buy oil from oversees. if this works, the oil industry would plummet
It would work over here. Nothing has to be changed to our cars or pumps. What wouldn't work is the giant oil companies going along with it. If you saw ethanol plants starting to open to produce, the oil companies would make the price of gas plummet and cause the ethanol plants to shut down. Then, up go the prices. I don't complain about the prices though, I could always walk to work. 58 miles
that's not true, to get the same power you have now you would need 2-3 times more ethanol than gasoline. So your mileage will plummet, and your fuel system would need to be upgraded. It is also very corrosive pumps have been known to fail very rapidly. E85 stations are all over the east and Midwest. Which is still 15% gas. The government really has no reason to lower prices, they are making more money too. We pay something like $.50 plus sales tax per gallon.
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Posts: 1053 | From: Hayward | Registered: Nov 2004
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F8LPONY
NORCAL-LS1
Member # 11
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posted
Oil demand has been on a huge upslope while iil production is maintaining its downslope its been experiencing for the last 30yrs. Gas prices will likely never be very low again unless alternatives displace the need for it which I hope they one day will.
For me I am actually happy gas prices are as high as they are. Maybe then people will stop buying stupid ass gas guzzling vehicles to drive to work, stop buying imported food which cost more to produce and transport than local grown foods, and ultimately push the market for fossil fuel alternatives.
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Posts: 1292 | From: Sacramento, CA. | Registered: Aug 2000
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UKCobra
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Member # 1240
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posted
quote:
Originally posted by CDT:
quote:
Originally posted by 5OHS5OH:
quote:
Have you heard that in Brazil they are using ethanol for gas made from the sugar cane fields. The US is trying to find out if it would work over here. Brazil is one of the only countries that does not buy oil from oversees. if this works, the oil industry would plummet
It would work over here. Nothing has to be changed to our cars or pumps. What wouldn't work is the giant oil companies going along with it. If you saw ethanol plants starting to open to produce, the oil companies would make the price of gas plummet and cause the ethanol plants to shut down. Then, up go the prices. I don't complain about the prices though, I could always walk to work. 58 miles
that's not true, to get the same power you have now you would need 2-3 times more ethanol than gasoline. So your mileage will plummet, and your fuel system would need to be upgraded. It is also very corrosive pumps have been known to fail very rapidly. E85 stations are all over the east and Midwest. Which is still 15% gas. The government really has no reason to lower prices, they are making more money too. We pay something like $.50 plus sales tax per gallon.
Thats not entirely true for all bio-gas products. Koenigsegg have produced a new super car, that can be tuned to 700 bhp on US pump gas, tuned to 750 bhp on UK gas, and can be tuned to 800+ bhp on bio gas.
Top Gear on BBC tested one in last weeks programme, they believe with a rear spoiler to keep the back end down, it could be 4 seconds faster round their track.
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Posts: 436 | From: Reading, UNITED KINGDOM | Registered: May 2002
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