• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 1 hour Shale Oil will it self destruct?
  • 12 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 2 hours Today in Energy
  • 2 days Excellent Choice: Germany's Von der Leyen Secures Powerful EU Executive Top Job
  • 2 hours Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 2 hours Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 1 day Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 1 day Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 2 days Migration From Eastern Europe Raises German Population To Record High
  • 2 days Washington Post hit piece attacking oil, Christians and Trump
  • 17 hours Why Natural Gas is Natural
  • 13 hours LA Solar Power/Storage Contract
  • 2 days White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment

Venezuela’s Main Oil Refinery Shuts Down After Blackout

Paraguana Refinery

Venezuela’s refining complex CRP has been shut down after a blackout that occurred on Sunday, Argus Media reports, citing union officials from the complex as saying the blackout was caused by a “catastrophic failure” in a turbine at the power plant that supplies electricity to CRP.

The complex, also called Paraguana Refining Center, consists of two refineries with a combined processing capacity of 955,000 bpd. As Reuters noted in its report of the accident, the complex, like the rest of Venezuela’s processing facilities, has been operating below capacity for several years because of the same operational problems that have plagued Venezuela’s oil industry.

Reuters also quoted a refinery employee from the complex as saying restarting operations at CRP would be difficult, which would additionally exacerbate Venezuela’s oil woes, which are already pretty grave.

The United States imposed sweeping sanctions on Venezuela’s oil industry and PDVSA at the end of January to cut off a cash lifeline for Nicolas Maduro and his regime, after Washington recognized opposition leader Juan Guaidó as the legitimate interim president of the Latin American country that sits on the world’s largest crude oil reserves.

As a result, production has been falling faster than before and so have exports, especially to the United States. In March, the EIA reported the first week since records began that the U.S. took no Venezuelan crude at all.

Blackouts have also become more frequent since Washington slapped the latest round of sanctions on Venezuela. A string of blackouts pretty much crippled the country in March. The oil industry suffered a particularly severe blow from the blackouts with all four upgraders turning the local extra heavy oil into a form more suitable for exports shutting down.

However, despite the persistent operational problems and the decline in production, Venezuelan oil exports have been on the rise as the South American country struggles to keep its end of the oil-for-cash bargain with China. Last month, daily exports rebounded to 1.1 million bpd because of this deal, with the amount going to China at 656,000 bpd.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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