@CSIS, the Center for Strategic and International Studies, looks at whether Oil can save Venezuela...
The Oil Industry Won’t Save Venezuela
March 28, 2019
Venezuelan oil production plummeted by over 50 percent from 2.3 million barrels per day (b/d) in January 2016 to 1.1 million b/d in January of this year. Production continues to collapse and is now well below the 1 million b/d mark following the implementation of U.S. sanctions on PDVSA, and more recently in the aftermath of widespread electrical blackouts.
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Until recently, most of the production losses in Venezuela came from Maracaibo and Maturin, while Orinoco output remained relatively flat until 2017. In addition, most declines centered at PDVSA-operated assets. As a result, at the beginning of 2019, Orinoco mixed company production accounted for more than 40 percent of total output. That picture continues to evolve, however, and under the current political situation, Orinoco production is beginning to collapse as well.
Problems range from shortages in diluent used to make the heavy oil exportable, operational issues at upgraders and processing facilities (exacerbated by recent power outages), and a once again disrupted export picture, impacted by the latest round of sanctions. Absent of major investment and operational improvements (all tied to political change), things will likely deteriorate further.
Read the whole report here: The Oil Industry Won’t Save Venezuela
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