Several U.S. refineries have been specifically calibrated to work with Venezuela's sludgy high-density, high-sulphur crude oil. Last year, $10 billion of Venezuelan crude oil was imported and refined, helping keep gas prices low. But with the political and economic turmoil in Venezuela, as well as the possibility of sanctions against Venezuela's government, U.S. consumers and refiners could face adverse consequences.
Companies like Chevron, Citgo, Phillips, and others are facing the prospect of supply disruption for the Venezuelan crude oil that feeds their refineries along the Gulf Coast. How significant is the risk, and what should accounting reports disclose about the pending risk?
Russia and China are using investments, loans, and aid to court countries in a region once considered off-limits to them. Russia has reinvigorated its relations with Cuba by sending oil and building military infrastructure. Chinese companies and the government have poured $6 billion into the Central American and Caribbean area since 2012.
Venezuelans have been emigrating to the United States in greater numbers. This new wave of migrants is arriving with college degrees and not much else. Escaping a failing economy and persecution, many of these Venezuelans do not plan to return home.
Venezuela is experiencing inflation rates in excess of 200 percent. While economists may ask why and wonder about the solution, the problem is also daunting for accountants. This kind of inflation rate invokes special rules on accounting for subsidiaries which have financial statements denominated in the country's Bolivar.
Oil production from wells in the U.S. has increased to the point that it can be exported, but heavy crude oil from foreign sources is still being imported. Refineries are finding it to be very profitable to import foreign crude and store it for later use instead of buying directly from U.S. sources and processing domestic oil.
HSBC Holdings Plc, fined for providing banking to money launderers and sanctions-dodgers, promised U.S. officials it would clean up its act. Unfortunately, some HSBC executives mounted a campaign of bullying, foot-dragging, and discrediting against internal auditors.
Venezuelans sell price-controlled goods for more in Colombia.
By boosting production and lowering prices, Saudi Arabia has helped create a bear market in oil.
The U.S. shale oil boom has kept markets calm.
Bosses flee, cinemas close early, and foreign capital goes elsewhere in Venezuela.
TransCanada plans to increase the amount of oil the Keystone Gulf Coast will carry to 830,000 barrels a day.
Research shows working-age populations are slipping in the U.S. and other industrialized nations while those of other countries are growing faster.
Although the relationship between BP and Russia has been tense at times, both now seem to see the benefits of working together
Lower oil prices are putting pressure on the Venezuelan oil industry, which is trying to squeeze oil services contractors.
The Saudis are concerned with maintaining worldwide demand for oil. Hence, the are working to keep a lid on oil prices.