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Page added on May 27, 2018

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Maduro Vows To Double Oil Production

Production

Venezuelan President Nicolas Maduro has promised to start increasing the crisis-stricken country’s oil production during his second six-year term in office.

AFP reports that during his inauguration speech, Maduro said he will seek the help of OPEC to double Venezuela’s oil production, which is currently at 70-year lows and much below its production quota under the OPEC cut agreement. Maduro said the current production rate—about 1.5 million bpd—would need to increase by 1 million barrels daily by the end of this year.

Further in his speech, Maduro said that Venezuela will defeat the U.S. sanctions and its economy will reverse its course to a more positive one, admitting, however, that it will be a tough job because of the sanctions and the ruinous state of its oil industry.

“I cannot deceive anyone, they are going to create serious difficulties for us, painful difficulties, that we will face gradually — we will defeat them. Trump’s sanctions will be nullified and defeated,” Maduro said.

Venezuela has been teetering on the brink of collapse for months now, and the thing that could push it over the edge would be further sanctions from the U.S, whether banning Venezuelan oil exports to Gulf Coast refineries or U.S. light crude exports to Venezuela, which it needs to mix its heavy crude with lighter grades to make it marketable.

President Trump has made it clear that both those options are on the table as he seeks to punish the Caracas regime.

If the United States were to slap sanctions on Venezuela’s oil industry, it could accelerate its already swift decline. In April, Venezuela lost 41,700 bpd of oil production and its output averaged 1.436 million bpd, according to OPEC’s secondary sources. This compares to average oil production of 2.154 million bpd for 2016 and to 1.911 million bpd for 2017, and was the lowest production level since 1949.

oilprice.com



7 Comments on "Maduro Vows To Double Oil Production"

  1. Davy on Sun, 27th May 2018 6:13 am 

    It will be interesting to see if higher oil prices will solve some of Venezuela’s systematic problems or is the country too far gone. This talk of doubling production is more desperation. The only thing left for Venezuela is to take the traditional IMF medicine and in the process loose sovereignty over its economy. How long until that happens or is the country too far gone?

  2. Duncan Idaho on Sun, 27th May 2018 10:33 am 

    Well, Russia and China are betting Ven will pull this off.
    I have no primary sources currently, but media delivered to the capitalist west is far from being remotely accurate.
    We shall see—

  3. BobInget on Sun, 27th May 2018 10:38 am 

    Unless Venezuela gets another 20 Billion $,
    a few thousand Russian and Chinese oil workers,
    Maduro must be hoping for divine intervention.
    (almost all talent has moved on to Brazil, Columbia, etc where the pay is fantastic compared to Venezuela).

    Judging from late-breaking news, China has grown impatient, Russia militant. Maduro can’t ‘invite’ Chinese or Russians in for fear of US intervention.

    Bottom line, production is dropping so quickly
    it’s doubtful domestic consumption can be satisfied.

    Trump believes we Americans will inherit the entire mess, debts and all.
    He may be correct.

  4. rockman on Sun, 27th May 2018 3:16 pm 

    Feb 2018 oil imports from Vz was 472,000 bopd. Or about 5% of US total imports. Or about 2.5% of total US oil consumption. Or about as much oil as the US imported from Columbia that same month.

    Venezuela who? LOL.

  5. Davy on Sun, 27th May 2018 3:46 pm 

    Shhh, Rock, Bob thinks the US will collapse without Venezuelian oil.

  6. Boat on Sun, 27th May 2018 4:01 pm 

    In a couple years the US won’t need anything from Venz. Unless to make a buck by refining and resale to other countries.

  7. DMyers on Sun, 27th May 2018 6:18 pm 

    Boat, there’s another aspect to US/Venezuela connection. Recall that our “shale miracle” produces a light product. That light product does not compute in our refineries, so it must be blended with heavy oil, e.g. Venezuelan, in order to bring the product to an acceptable consistency. We are not independent from heavy oil sources. Venezuela is not the only source, but we could evolve into a situation where we really need their stuff.

    Venezuela is the basket case poster child for Socialism. I don’t see Venezuela producing anything until Maduro goes. No way he’s going suddenly to turn things around, when the momentum is all pushing toward total collapse.

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