• 4 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 10 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 13 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 17 mins More dumbed down? re Hong Kong Act of Congress
  • 21 hours EU has already lost the Trump vs. EU Trade War
  • 16 mins U.S. Shale Output may Start Dropping Next Year
  • 51 mins Winter Storms Hitting Continental US
  • 2 hours U.S. Shale To Break Records Despite Bearish Rhetoric
  • 41 mins Aramco IPO magic trick
  • 24 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 19 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 5 hours Petroleum Industry Domain Names
  • 2 hours Crazy Stories From Round The World
  • 1 day Article: Did Exxon only make $39 Million onshore U.S. last quarter ?
  • 20 hours PennEast Appealing Wacky 3rd Circuit Decision to Supreme Court
  • 1 day Visualizing Pennsylvania Oil & Gas Production (Through September 2019)
  • 1 day Last I Checked
  • 20 hours China 2019 - Orwell was 35 years out

Breaking News:

UK Oil Sector May Be Hit With More Taxes

Alt Text

Oil Sinks As Trade War Sentiment Turns Sour

Oil prices sank on Tuesday…

Alt Text

The Five Biggest Enemies Of Oil & Gas

The oil and gas industry…

Alt Text

The Race To Develop A 50 Billion Barrel Oilfield

China has clearly become the…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Production Paralyzed As Venezuela's Electricity Crisis Worsens

The power supply crisis in Venezuela is highly likely to continue in the coming months, affecting everyday life and paralyzing oil production in the country sitting on top of the world’s largest oil reserves, IHS Markit said in a commentary on Thursday.  

The major power outage in March this year disrupted severely the already crumbling Venezuelan oil production and threatened its oil exports. The massive outages in March may have made the headlines, but Venezuela continues to suffer to this day from frequent significant disruptions to the power supply for the capital Caracas, major cities, and oil processing sites.

Outages in Caracas continue to occur at least several times a week, while other parts of the country, including the oil-rich state Zulia, experience blackouts practically every day, said Etienne Gabel, Senior Director, Gas, Power and Energy Futures, at IHS Markit, and Carlos Cardenas, IHS Markit’s Director, Latin America Country Risk.

Venezuela is unlikely to restore sustainable power supply any time soon, because it lacks money for spare parts and skilled personnel to do the repairs. Technicians have left state power firm Corpoelec and the country’s power system is now in the hands of the military, IHS Markit’s experts say.

“Realistically, the system cannot recover fully without investments and skilled labor from foreign entities—something that appears unlikely under the current economic and political environment,” IHS Markit said. Related: The U.S. Just Doubled Its Natural Gas Exports

The recurrent blackouts further cripple Venezuela’s declining oil production and state revenues. Massive power outages are paralyzing the oil industry, along with the U.S. sanctions on Venezuela, the total economic collapse, and the protracted political power struggle.

Venezuela’s oil production plunged by 82,000 bpd from August to stand at just 644,000 bpd in September, according to OPEC’s latest figures.

Unlike Venezuela’s expectations that it would recover its oil production by the end of 2019, as expressed by its oil minister Manuel Quevedo, IHS Markit said in July that output could drop to below 500,000 bpd next year. According to IHS Markit, Venezuela’s oil industry has deteriorated so much since 2014 that any recovery would be a long time coming.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Rod GILLIS on November 01 2019 said:
    Typical dictator, he used the wealth of Venezuela to do all kinds of good things for the people in order to gain their favor. To do that, he borrowed on oil in the ground at the current prices and took a big risk. The price of oil fell sharply and this left the country with huge bills they couldn't pay. Maduro knew his popularity was waning so the put people in the justice system and military who favored him while jailing opposition leaders. This is what happens when democracy is not fully entrenched. When he lost the election he declared a national emergency in order to stay in power. He doesn't care about the well being of the people, all he cares about is staying in power.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play