Venezuela’s oil production has increased to near 1.9 million barrels per day (MMbbl/d) after hitting a historic low last year, according to Manuel Quevedo, oil minister and head of state oil firm PDVSA, who vowed 2018 will see output rise to more than 2.4 MMbbl/d.
The OPEC country is facing an economic crisis, with millions suffering food and medicine shortages. Venezuela relies on oil for about 95 percent of export revenue though output has fallen significantly in recent years.
“The year 2018 will be one of recovery, after having touched a historic low. We are now near 1.9 million barrels of oil per day, thanks to the workers,” said Quevedo, a military general, speaking in a television interview.
He gave few details, sticking to general aims like eradicating corruption and placing power in workers’ hands as a means to revive Venezuela’s oil industry.
Venezuela told OPEC it produced 1.834 MMbbl/d in November, the lowest figure for the year so far. Quevedo implied that December's figure, to be published by OPEC on Jan. 18, would be higher.
Analysts, however, expect the precipitous decline in output to continue, given the country’s economic crisis.
Quevedo blames U.S. sanctions and corruption for the problems, echoing President Nicolas Maduro who says Venezuela is suffering from an “economic war” waged by Washington.
Critics blame a crumbling oil sector, tight and failing currency and price controls and an authoritarian government doubling down on a decade and a half of inept policy.
Recommended Reading
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.
Ohio Utica’s Ascent Resources Credit Rep Rises on Production, Cash Flow
2024-04-23 - Ascent Resources received a positive outlook from Fitch Ratings as the company has grown into Ohio’s No. 1 gas and No. 2 Utica oil producer, according to state data.
E&P Highlights: April 22, 2024
2024-04-22 - Here’s a roundup of the latest E&P headlines, including a standardization MoU and new contract awards.