• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 3 hours US after 4 more years of Trump?
  • 1 hour Something wicked this way comes
  • 2 days Daniel Yergin Book is a Reality Check on Energy
  • 6 hours Why NG falling n crude up?
  • 3 hours Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 3 days Permian in for Prosperous and Bright Future
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 3 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 3 days Gepthermal fracking: how to confuse a greenie
  • 1 day The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 1 hour Biden NOW says he supports Fracking
  • 2 days Open letter from Politico about US-russian relations
BP Bombshell: India’s Oil Demand May Peak In 2025

BP Bombshell: India’s Oil Demand May Peak In 2025

India’s oil consumption may peak…

Venezuela Boosts Reserves By Granting Central Bank Oil Bloc

Venezuela’s President Nicolas Maduro announced that the government has granted the country’s central bank a concession for an oil bloc in the prolific Orinoco Belt in a bid to boost the country’s crude oil reserves, Reuters reports.

The Orinoco Belt is where most of Venezuela’s abundant heavy crude reserves are located, but simply awarding a concession to the central bank does not automatically mean the troubled country could boost its fast-falling oil production that has turned it into a major swing factor for international prices.

Earlier this month reports emerged that Venezuela’s Oil Minister Manuel Quevedo has discussed plans with state-held oil company PDVSA to raise the country’s crude oil production in the second half of the year. Maduro had earlier announced plans were to boost production by as much as 1 million bpd by the end of the year, adding, however, that the task would be difficult to complete.

China, a staunch ally of Caracas, could become instrumental for Venezuela’s efforts to reverse the inexorable fall in crude production, which has seen it lose more than 40,000 bpd every month for several months now. The latest OPEC monthly production report said Venezuela had shed another 47,500 bpd in June from May, with the daily average at 1.34 million bpd.

Earlier this month, Venezuela’s Finance Minister told media that the China Development Bank had approved a US$5 billion loan for the South American country’s embattled oil company, PDVSA, of which US$250 million were already authorized as a direct investment.

Venezuela has the largest oil reserves in the world, at over 300 billion barrels, but the plunging oil production is nearing the psychological threshold of just 1 million bpd as early as this year, analysts and industry experts say, and don’t see how production can be restored after years of underinvestment and mismanagement.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Oil Technician on July 27 2018 said:
    No surprise. Maduro and his team must promise only lies...Venezuela's oil era will be over because of their lack of management, poor investment and corruption.
  • Earl D on July 27 2018 said:
    @Cannibal,

    Aren't most oil operations in Orinoco Belt jointly operated with non-Venezuelan parties? I assume (maybe incorrectly) that those projects are at least partly staffed with foreign workers' whose pay is denominated in dollars.
  • Cannibal Hector on July 26 2018 said:
    After inflation PDVSA oil workers are paid $3/month. You cannot eat on $3/month. The oil workers steal what they can carry and leave Venezuela. Now you tell me how PDVSA can continue pumping oil without oil workers? Here is a hint. You cannot put boots on a soldier and pump oil.

Leave a comment

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