Venezuela made an agreement to enhance supply of oil to china and its president Chavez threatened that it would stop supply of oil to the us.Will the economy of the us collapse if Venezuela stops suppling oil to the us?
Ha, not at all, but the economy of Venezuela might collapse. Oil is a fungible commodity, meaning the buyers and sellers would just swap around and the market would slightly reorganize itself. If Chavez sold to country X instead of to the U.S., the the U.S. could simply buy from whoever was previously supplying to country X. Get it? No difference as long as the total amount of oil supplied is the same.
Now the only problem is that I've read that Venezuelan oil is very low quality crap, and only the U.S. has the refineries necessary to refine it into usable gasoline and other products. Not sure if that's true, but if so, that means Chavez has no choice but to sell to us if he wants any money at all because no one else could take it.
Will the economy of the us collapse if Venezuela stops suppling oil to the us?
I agree with Kevin and I have heard few other refineries can turn Venezuelan oil into gasoline. It may be hard to tell from India, but Chavez is more bluster than effective. His bluster is listened to more in Venezuela where he controls the media than the rest of the free world where his leadership has soap opera qualities. His influence is felt more with his immediate neighbors with countries much poorer than his. He projects a sense of grandeur and it may assist his country in the end by getting it more attention, but he is having some problems in Venezuela itself that he is seeking to evade.
The US has the largest economy in the world. If it collapses, the world's economy implodes. It won't be the first time. Maybe we need this destruction so that a beautiful phoenix can arise from the ashes. Maybe I'm dreaming.
well maybe that would be enough to wake america up about domestic drilling but if not it would just make gas prices shoot up
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