• 6 minutes Will the trade war hurt US project builds? Not if the US does it right.
  • 12 minutes OIl Targets from Experts to $300, vs. imho $52
  • 18 minutes Oil prices going down
  • 19 hours U.S. Challenges 5 WTO Members imposing Illegal Tariffs Against U.S. Products
  • 5 hours Chile Becomes The Latest Country To Commit To 100% Renewables
  • 16 hours Germany: We Can No Longer Fully Rely On U.S. White House
  • 14 hours Well from $74 we hit 67.xx now what?
  • 12 hours Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 4 hours Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 1 hour Chartist predicting a $1 fall, after WTI drops $10
  • 11 hours Where 3 Million Electric Vehicle Batteries Will Go When They Retire?
  • 16 hours Trade War of 1930s, Extended the Great Depression
  • 12 hours Rio Tinto Says $4-Million Goodbye to Coal
  • 20 hours Is Libya the current Iran for oil markets?
  • 19 hours Iran's President Warns Over U.S. Push For Countries To Stop Buying Oil From Iran
  • 19 hours Total Trade War: U.S. Threatens Tariffs On $200 BN of China Goods
  • 19 hours Apple's $300 fund in China
  • 16 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy

PDVSA: Venezuela Will Struggle To Recover Lost Oil Production

Refinery Cuba Cienfuegos

Venezuela will be hard put to recover by end-2018 the crude oil production that it lost in the last couple of years, the country’s Oil Minister said during OPEC’s meeting in Vienna.

Reuters quoted the official as saying, “We hope that by year-end, we will have recovered the lost production, we have the capacity to do so, we’ve said so. This is a goal for 2018 that is very challenging for PDVSA ... but it’s the goal we’ve set ourselves.”

In May, President Nicolas Maduro said Venezuela will try to increase oil production by 1 million bpd by the end of the year and will rely on assistance from Russia, China, and OPEC for that.

To date, Oil Minister Manuel Quevedo said, Venezuela is pumping 1.5 million bpd, which is a lot less than the 2.37 million bpd it was producing just two years ago, before the years of mismanagement and lack of cash for maintenance brought about by the U.S. sanctions really started to bite in.

According to some observers, Venezuela’s oil production could slump to about 1 million barrels daily this year, which would be the lowest ever in its history.

It was precisely because of this production slump that OPEC managed to exceed its overall compliance with the production cuts agreed at the end of 2016, whose future the cartel is discussed today.

Related: NAFTA Rift Could Be A Boon For Canadian Oil

The joint monitoring committee last night recommended a production increase of 1 million bpd, to be distributed proportionately among members and non-OPEC signatories to the deal, but Saudi Arabia’s Oil Minister Khalid al-Falih said the actual increase would be lower, at around 600,000 bpd, because not all members had the spare capacity to tap. The actual outcome of the meeting has OPEC increased production levels of the cartel back to the original levels set under the November 2016 quota.

However, according to Quevedo, “We have a recovery plan with the refineries to use the capacity that we have ... we have a lot of spare capacity that we will use as (crude) output increases.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Vishwas on June 25 2018 said:
    Venezuela oil industry recovery? OPEC, Venezuela, Russia are all major oil producer countries controlled by vested interest. Their talk has little credence. The rate will depend on their budget constraints. If America succeeds in forcing them spend more on defence we may see lower oil rates.
  • Ralph on June 23 2018 said:
    You can order a general to pump 1.5mm bbl/day and you can order him to increase production by 1mmbbl/day. The general will always say "Yes, Sir!" Reality is a different story.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News