Venezuela has one active oil rig according to the Baker Hughes international oil rig report. Venezuela is producing 367,000 barrels of oil per day. In 2016, Venezuela’s economy needed about 600,000 barrels per day. Venezuela depends upon oil import shipments from Iran. Venezeuela had oil production levels of 2.4-3.5 million barrels per day and was able to export about 2 million barrel per day.
Iran is pumping less than 2 million barrels per day which is about half of its post-1980 four million barrel per day peaks. Iran had 6 million barrel per day production under the Shah.
Both Iran and Venezuela are under US economic sanctions. Venezuela’s economy collapsed under the socialist mismanagement of Chavez and Maduro.
Cuban advisors were able to teach the authoritarian leaders in Venezuela how to stop uprisings and maintain control in spite of a terrible economy. The agreements and training with Cuba have lasted for twelve years.
90% of Venezuela’s population now lives in poverty and are barely getting enough to eat. 4 million people have fled the country.
Venezuela’s oil industry will probably never recover. All of the deterioration in infrastructure means it would cost many billions of dollars and technically skilled resources to repair and restore the facilities. However, Venezuela’s 300 billion barrels of oil are mostly heavy oil with high sulfur content. COVID has caused a drop in world oil demand from 100 million barrels per day down to 91 million barrels per day. There is more valuable and climate change friendly oil resources in the USA and Saudi Arabia. Any recovery in the world economy will tap into those other sources of oil.
There will also be a flattening of oil demand during the 2020s with increasing electrification of cars and trucks. this will lead to declining world oil demand starting around 2030.
SOURCES – Opec, Reuters, Oilprice, Baker Hughes
Written By Brian Wang, Nextbigfuture.com
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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