Venezuela OIl Aff

Topics: Venezuela, Petroleum, Oil reserves Pages: 12 (4754 words) Published: August 14, 2014

Contention 1 - Inherency
A) Venezuelan Oil exports to the US are on the decline
Epperson and Domm 13 (CNBC.com, March 6, 2013 http://www.csmonitor.com/Environment/Latest-News-Wires/2013/0306/With-Hugo-Chavez-gone-US-oil-industry-eyes-Venezuela) ConocoPhillips CEO Ryan Lance, who spoke Tuesday morning at the Houston energy conference prior to news of Chavez's death, noted how the global energy landscape has changed dramatically. "The new landscape is like someone picked up the energy world and tilted it," he said, as countries with great demand for energy and those with ample supplies has changed. The U.S. is now exporting more of its natural resources than ever before, he said. Those exports include shipping record supplies of US gasoline to Venezuela. Meanwhile Venezuela oil exports to the U.S. are on the decline.

Plan –The United Stated federal government should substantially increase its economic engagement towards Venezuela by giving PDVSA (Petróleos de Venezuela, S.A.) Up to 5 billion annually for 7 years to open the Orinoco Belt

Contention 2 - Solvency
A) 5 billion dollars sufficient to open up the Orinoco Belt Gue 13
(Elliot H Gue, masters of finance form University of London, Energy and Income Advisor, Venezuelan Oil Production: No Overnight Recovery, March 21 2013, http://www.energyandincomeadvisor.com/venezuelan-oil-production-no-overnight-recovery/ unlike Saudi Arabia, heavy oil accounts for much of Venezuela’s resource wealth. Exploiting these complex deposits requires significant investments in infrastructure and the technical expertise of major international oil companies and services firms. Industry observers estimate that maintaining production from Venezuela’s Orinoco Belt and other fields would require annual capital expenditures of between USD3 and USD5 billion. But Chavez’s plethora of social programs robbed PDSVA of the necessary capital to fund ongoing development of the nation’s considerable hydrocarbon resources.

B) Investment in oil results in better relations and economy, Canada Proves Government of Canada 13
(Government of Canada, Canada–U.S. energy relations, Government of Canada, it is the government of Canada http://www.canadainternational.gc.ca/san_diego/bilateral_relations_bilaterales/energy-energie.aspx?lang=eng, January 24 2013) Canada’s stable economic and political environment attracts businesses from around the world. The oil sands represent significant business opportunities for Canadians and Americans. U.S. firms are significant investors, producers and developers of new technology in Canada’s oil sector. In the oil sands alone, close to 1,000 U.S. companies of all sizes, from almost every state, and from all sectors of the economy, including engineering, high-tech, and financial services, directly supply goods and services to companies producing oil in Canada. In fact, between 2010 and 2035, oil sands development is anticipated to support, on average, an estimated 93,000 jobs per year in the U.S. With increased pipeline capacity, this could grow to, on average, 160,000 jobs per year. Oil sands development is also anticipated to contribute, on average, US$8.5 billion (CAN$8.4 billion) per year to the U.S. gross domestic product over the same time period, and US$14.6 billion (CAN$14.4 billion) with increased pipeline capacity. Finally, Canada’s regulatory framework is among the most stringent in the world.

Advantage 1 - US Economy
A) Oil prices are rising and will continue rising
Xinhua 2013
(Xinhua, Global Times, US oil price rises as crude supplies fall, http://www.globaltimes.cn/content/830024.shtml#.UqFkM_RDuzs December 5, 2013) US oil...
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