Venezuela is facing the worst economic and humanitarian crisis in its history. Venezuela has been hit by the 24 months collapse in oil prices. Its economy is expected to shrink 10 percent  at the end of 2016, the biggest contraction in the last 13 years, while inflation has reached more than 700 percent according to the International Monetary Fund (IMF). Other analysts say that inflation has already reach 1,000 percent. Venezuelans are living day-by-day facing a very complicated situation with rising crime and corruption rates, daily electricity blackout, medicines and food shortage (more than 80 percent). Venezuelans can t get even the most basic lifesaving medical supplies as antibiotics. On Monday 22th August 2016 Brent oil traded around $49 a barrel, but two years before Brent was $102 a barrel, and even then Venezuela was already having economic problems. Even with a recovery in crude, higher prices are unlikely to solve the economic, humanitarian and political crisis. In Venezuela 96 percent of foreign currency earnings come from oil industry and with the collapse of the oil prices the income has fallen more 50 percent. But in addition to declining revenues, oil production has also dropped, doubling the pain for Venezuela. The problems could grow worse. Several oil service companies suspended or slowed operations in Venezuela this year due to difficulties in obtaining payment from the state-run oil company, Petr leos de Venezuela (PDVSA). Contractors have cut back on drilling in Venezuela amid rising unpaid debt, which threatens to take Venezuela s output down even further. On June 28th 2016, Baker Hughes reported that the number of oil rigs in Venezuela dropped from 69 to 59 in May of this year. The CEO of the Italian oil and gas contractor Saipem SpA said that in April the company had suspended 89 percent of its operation rigs in Venezuela ( 25 of its 28 rigs ). Other companies as Schlumberger or Halliburton Co are reducing their activities in Venezuela because of unpaid services bills. Venezuela s active rig count, a good indication of future production, fell from 71 to 49 in July according to Baker Hughes, the lowest since the end of 2011. Related: Oil Plunges After EIA Reports Builds Across The Board   Since 1998, oil production in Venezuela has been reduced by 750,000 barrels per day, with output falling by 250,000 barrels per day  in the first half of 2016 alone, according to Dr. Francisco Monaldi, a fellow in Latin American Energy Policy at the Baker Institute at Rice University in Houston. Luisa Palacios, a senior managing director at Medley Global Advisors LLC, said  that exports in Venezuelan crude has fallen by more than 300,000 barrels per day in June 2016, compared with 2015 average. PDVSA is in talks with oil services companies to turn unpaid services into financial instruments, a process known as securitization. Venezuela s oil minister Eulogio Del Pino last month said that PDVSA had signed financing agreements with Weatherford International Plc and Halliburton and was close to a deal that would allow Schlumberger to boost its presence in the OPEC nation. This mechanism enables to trade commercial debt for financial debt, improving cash flow holding instruments with financial return, in order to manage the low oil price environment said Del Pino. These mechanisms allow the contractors to continue local operations. The statement describes these operations as a plan in development that was supported by important drilling and services companies, without naming which ones were involved in the discussions. In recent years PDVSA s debt has increased from $3 billion to more than $43 billion, Dr. Monaldi said on C sar Miguel Rond n s radio program from Union Radio, Caracas Venezuela in August 16th this year. Related: Like A Rollercoaster Hyper-Volatile Oil Funds See Popularity Spike   Even if oil prices increase, the situation is very complicated for Venezuela s economy. PDVSA has no cash, it is struggling to pay its debts and the oil industry needs huge investments to keep oil production from falling, leaving aside investments in new operations. For the moment the Venezuelan government has prioritized meeting debt payments even if that means deteriorating conditions for its populace. It seems like an odd choice, but for a country that depends on oil exports for 95 percent of its revenue, the government is certainly concerned about exposing itself to legal actions by bondholders in international courts. Also, the cost of default could be higher than the payment of his obligations. Furthermore, the non-payment will add a more negative image for the government bonds, which puts it in uncomfortable position to renegotiate any new lines of credit. Venezuela, so far, is still solvent. However, this issue is badly managed by the government with the erroneous policies. Venezuela must learn from past mistakes and needs massive reforms to put the country in the right direction. See Luis’ LinkedIn page  for more stories on Venezuela’s oil industry By Luis Colasante for Oilprice.com More Top Reads From Oilprice.com: References ^ 10 percent (www.bloomberg.com) ^ 25 of its 28 rigs (www.bloomberg.com) ^ Related: Oil Plunges After EIA Reports Builds Across The Board (oilprice.com) ^ 250,000 barrels per day (oilprice.com) ^ said (www.globaltrademag.com) ^ said (www.mixcloud.com) ^ Related: Like A Rollercoaster Hyper-Volatile Oil Funds See Popularity Spike (oilprice.com) ^ Luis’ LinkedIn page (www.linkedin.com)
Reference Library – European Union – Sweden
Date: 13.09.2016 The 2016 winner bested the global field in a slightly revamped competition The winner: Tom Hor i ka. The Volvo Trucks Drivers Fuel Challenge 2016 has been run and won with Tom Hor i ka from the Czech Republic taking the crown as the most efficient driver. Besting 12,000 global applicants and the finals other 27 competitors, Hor i ka used only 2.90 litres of fuel to complete the challenge in just 10 minutes and 40 seconds. “Winning The Drivers Fuel Challenge means the world to me,” the 34-year-old driver says. “And since I am both a truck driver and a company owner, I know how important fuel-efficient driving really is.” Testing drivers on their ability to travel efficiently, Volvo Trucks challenge required them to traverse a 6.9km test track in Gothenburg, Sweden, in less than 12 minutes and 30 seconds and save as much fuel as possible.
The drivers were judged on the fuel used and were awarded bonus points for finishing the course inside the allotted time. Volvo Trucks product manager in charge of the challenge Lene Larson says the test highlights the skills required by today s drivers. “Through the Drivers Fuel Challenge we want to show the difference a good driver makes,” Larson says. “A fuel-efficient driver can make a substantial difference and save as much as 10 per cent in fuel costs. “In the long run, that means huge cost savings for transport companies. “And I am truly impressed by how well the drivers utilised the potential and techniques of the trucks.” This year s event added the bonus point twist, making driver s juggle speed versus fuel. Volvo Trucks senior vice president of product and vehicle sales Ricard Fritz says it was in an effort to further match real-world requirements. “Meeting delivery deadlines is critical for today s transport companies,” Fritz says. “By including time constraints, the skills to prove in the Drivers Fuel Challenge are even more practical and relevant to the driver s day-to-day work. “To win, the driver needs to drive in an exceptionally well-planned, forward-looking and fuel-efficient way.” Rounding out the challenge s top four was Stanislav Martynov from Russia, Emir Salihovi from Bosnia and Herzegovina, and Kjetil Dale from Norway.
On top of being crowned Volvo Trucks most fuel efficient driver, Hor i ka won a trip to the Formula 1 race of his choice.
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28 finalists from around the world competed for the title World s most fuel efficient driver in Volvo Trucks Drivers Fuel Challenge 2016. The winner was Tom Hor i ka from the Czech Republic. In this year s challenge competitors were evaluated on both fuel savings and time, setting a high bar for the drivers skills as well as for the trucks.
On Friday 9 September, 28 truck drivers from all over the world gathered at Volvo Trucks test track in Gothenburg, Sweden to participate in the Drivers Fuel Challenge. The competition consists of driving a Volvo FH around the 6.9 km long track while using as little fuel as possible. This year s set up also included a twist: participants that managed to complete the course with time to spare were given extra points.
Meeting delivery deadlines is critical for today s transport companies. By including time constraints, the skills to prove in the Drivers Fuel Challenge are even more practical and relevant to the driver s day-to-day work. To win, the driver needs to drive in an exceptionally well-planned, forward-looking and fuel-efficient way, says Ricard Fritz, Senior Vice President, Product and Vehicle Sales, Volvo Trucks.
To succeed the drivers needed to achieve a high average speed while keeping fuel consumption to a minimum, which was made possible thanks to a Volvo FH equipped with the recently enhanced powertrain. Our updated powertrain enables the engine and gearbox to utilise their full combined potential to deliver even more efficient transportations, says Mats Franz n, Product Manager Powertrain Components Engines at Volvo Trucks. Fuel accounts for around a third of a transport company s costs.
That is why Volvo Trucks works continuously to meet the customer s growing needs for fuel-efficient transport. But to be a truly fuel-efficient transport company, a modern truck is not enough; a good driver is a necessity. For this reason Volvo Trucks puts strong emphasis on vehicle handovers and professional driver training.
Through the Drivers Fuel Challenge we want to show the difference a good driver makes. A fuel-efficient driver can make a substantial difference and save as much as ten per cent in fuel costs. In the long run, that means huge cost savings for transport companies.
And I am truly impressed by how well the drivers utilised the potential and techniques of the trucks, says Lene Larsen, Project Manager, The Drivers Fuel Challenge, Volvo Trucks. Clinching a spot at the Drivers Fuel Challenge 2016 final was no small feat. The 28 competing drivers in the global final qualified through national and regional Drivers Fuel Challenge competitions held across the world, which involved over 12,000 drivers.
Of the 28 participant in this year s Drivers Fuel Challenge, Stanislav Martynov from Russia, Emir Salihovi from Bosnia and Herzegovina, Tom Hor i ka from the Czech Republic and Kjetil Dale from Norway made it to the grand final. In the end, it was Tom Hor i ka who brought home the title. Winning The Drivers Fuel Challenge means the world to me.
And since I am both a truck driver and a company owner, I know how important fuel-efficient driving really is. says Tom Hor i ka. Along with the title of world s most fuel efficient truck driver , the winner also received a VIP-trip for two to a Formula 1 race of their choice, where they will gain unique insights into the F1 racing world.
How the Drivers Fuel Challenge works From 42 participating countries, 28 drivers qualified for the Drivers Fuel Challenge global final. The competing drivers had 12 minutes and 30 seconds to drive a Volvo FH truck around the 6.9 km long competition course. The main goal was to use as little fuel as possible.
Additionally, bonus points were given to the drivers that finished the course in the shortest amount of time. Factoring in time in the overall results, ensured that it became even more important to keep high average speed. Facts about the winner: Name: Tom Hor i ka Age: 34 Nationality: Czech Occupation: Tom Hor i ka Result: Fuel (litres): 2,90.
Fuel with bonus (litres): 2,04.
A selection of Volvo Trucks recent fuel-efficiency efforts: Presentation of the Volvo Concept Truck which uses 30 per cent less fuel Enhanced Euro 6 engine Improved aerodynamic design of the Volvo FH cab Weight reductions on the Volvo FH and FM I-Shift with crawler gears offers an outstanding startability for heavy haulage and in severe conditions and increased fuel efficiency Tandem Axle Lift, which allows the second driven axle to be disengaged and raised when not fully loaded in order to reduce fuel consumption