Venezuela July 2018 oil production half of 2015 levels

Venezuela was producing oil at about 2.6 million barrels per day in 2015. OPEC estimates Venezuela produced 1.278 million barrels per day in July. This is down from 2.15 million barrels per day in 2016 and 1.91 million barrels per day in 2017.

Analysts expect Venezuela’s oil production to fall to below 1 million bpd by the end of 2018.


source: tradingeconomics.com

Venezuela has signed a US$430 million joint service agreement with seven companies that they hope will help them to increase its crude oil production by 641,000 barrels per day. Others have estimated it will cost about $10 billion per 100,000 barrels per day of production restoration.

China lent Venezela $5 billion in 2015 to boost oil production, but that effort clearly failed and was not enough.

$430 million will do nothing to stem

Problems moving what is being produced with port closures and asset seizures

The closing of a dock at Venezuela’s main oil export port could delay as much as 5 million barrels in crude deliveries to Russian company Rosneft, further complicating oil-for-loan agreements between state-run PDVSA and Rosneft.

PDVSA has fallen behind on its export contracts this year, raising the prospect of temporary cancellation of shipments under force majeure if it cannot recover production and export capacity.

Venezuelan production in July fell to its lowest level in over 60 years because of a lack of investment, legal disputes with creditors and sanctions imposed by the U.S. government on PDVSA.

Also, oil workers are starving along with the rest of the country. Many are fainting from lack of food. Workers are leaving their jobs and taking trucks and key equipment. This is further complicating the problem of keeping the oil facilities operational.

27 thoughts on “Venezuela July 2018 oil production half of 2015 levels”

  1. Worse for Venezuela their assets will be legally seized in the US to compensate for what they stole. So they destroyed what they nationalized and their productive overseas assets will be confiscated. Its lose-lose for them.

    Reply
  2. Worse for Venezuela their assets will be legally seized in the US to compensate for what they stole. So they destroyed what they nationalized and their productive overseas assets will be confiscated. Its lose-lose for them.

    Reply
  3. Maybe the Venezuelans are being good Malthusians and are trying to reduce their carbon footprints by starving their people? In all honesty the problem isn’t just Maduro. It is all the people in the bureaucracy who support him because they live good lives. Of course at a certain point it will all just collapse.

    Reply
  4. Maybe the Venezuelans are being good Malthusians and are trying to reduce their carbon footprints by starving their people?In all honesty the problem isn’t just Maduro. It is all the people in the bureaucracy who support him because they live good lives. Of course at a certain point it will all just collapse.

    Reply
  5. Worse for Venezuela their assets will be legally seized in the US to compensate for what they stole. So they destroyed what they nationalized and their productive overseas assets will be confiscated. Its lose-lose for them.

    Reply
  6. Maybe the Venezuelans are being good Malthusians and are trying to reduce their carbon footprints by starving their people?

    In all honesty the problem isn’t just Maduro. It is all the people in the bureaucracy who support him because they live good lives. Of course at a certain point it will all just collapse.

    Reply
  7. In this blog it has been said that Venezuela would see a military coup before the end of the year Still4 months to go, Brian..

    Reply
  8. I wonder if the Venezuelan government is going to say “Uncle”, “remove” the bozo in charge or just let everyone in the country starve to death.

    Reply
  9. I wonder if the Venezuelan government is going to say Uncle”””” “”””remove”””” the bozo in charge or just let everyone in the country starve to death.”””

    Reply
  10. Venezuelan production in July fell to its lowest level in over 60 years because of a lack of investment, legal disputes with creditors and sanctions imposed by the U.S. government on PDVSA.” No it has fallen due to Socialism. They are Socialists who nationalized their oil industry and that is what happened. Once the oil industry was nationalized Socialism worked its magic and here we are.

    Reply
  11. Venezuelan production in July fell to its lowest level in over 60 years because of a lack of investment” legal disputes with creditors and sanctions imposed by the U.S. government on PDVSA.””No it has fallen due to Socialism. They are Socialists who nationalized their oil industry and that is what happened. Once the oil industry was nationalized Socialism worked its magic and here we are.”””

    Reply
  12. I get that China is “investing” in Venezuelan oil production for geopolitical reasons but at a certain point in time you need to cut the losses. It is easier to build a colony on the Moon than it is to fix Venezuela.

    Reply
  13. I get that China is investing”” in Venezuelan oil production for geopolitical reasons but at a certain point in time you need to cut the losses.It is easier to build a colony on the Moon than it is to fix Venezuela.”””

    Reply
  14. “Venezuelan production in July fell to its lowest level in over 60 years because of a lack of investment, legal disputes with creditors and sanctions imposed by the U.S. government on PDVSA.”

    No it has fallen due to Socialism. They are Socialists who nationalized their oil industry and that is what happened. Once the oil industry was nationalized Socialism worked its magic and here we are.

    Reply
  15. I get that China is “investing” in Venezuelan oil production for geopolitical reasons but at a certain point in time you need to cut the losses.

    It is easier to build a colony on the Moon than it is to fix Venezuela.

    Reply

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