Now, you may wonder what business I have quoting some random group of people from the Internet. But heck, check for yourselves – I can’t see any mistakes in the analysis, but perhaps you can.
The exercise is simple. Starting from the assumption that crude shipped to the Caribbean (er … Cuba) is sold at a 60% discount, and using historical figures from the IEA about Venezuelan oil shipments, they conclude that the subsidy to our “partners” costs some US$ 13 billion every year, or roughly US$ 100 billion since 1999.
I emailed them, and they claim to be oil analysts with advanced degrees who wish to remain anonymous.
I’m a sucker for these kinds of calculations, so let’s debate its merits in the comments section.