Here is update on the Falling Oil prices mean to Venezuela & Chavez social programs and the dual impacts on revenue from reduced volume & price of crude oil exports. And it couldn’t happen to a more deserving guy!
The drop from $147-100/Bbl has put a lot of projects in financially troubled L. America countries in a great deal of doubt. The same of course will be true for other financial or credit troubled countries like Cuba & Argentina refinery projects.
And the article indicates other projects underway & current Venezuelan/Chavez largess are already in trouble below the $92-95/Bbl that the Deutsche bank estimates Chavez needs to balance his budget for its import of goods & services, export subsidized oil and for current social programs / refinery projects.
The article mentions that additional pressures are not likely to be felt until the current $70/Bbl falls below $65/Bbl. My past estimates put a price tag of $52/Bbl just for Chavez to finance social programs within Venezuela and that is without the cost needed to keep capacity from dropping off as it has during the last 4 years.