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Oil production fell because of the problems with energy supply in Venezuela

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Oil production fell because of the problems with energy supply in Venezuela
March 12
13:00 2019

According to the Bloomberg agency, there has been a strong decline in oil production due to power outages in Venezuela. In some regions, the production was stopped completely; the wells were closed, because this industry depends on the energy supply.

There are no specific details at the extent of production cuts. It is only known that the production has been “significantly” reduced.

There have been difficulties with the energy supply in Venezuela for several days. Because of this, a lot of enterprises do not work.

The source said that the consequences of the current problems would be reflected in the March report of the Ministry of Oil. He also added that the assessment of the situation by the Minister of Oil Manuel Quevedo would be already known that week.

Due to the decrease in investment and the large skills drain, the Venezuelan oil industry has been experiencing great difficulties in the past few years. The sanctions imposed by the United States have become a serious blow too. 5 years ago, the country mined 2.4 million b/d, now the production has fallen more than twice – to the level of 1.1 million b/d.

The Executive Director of the IEA Fatih Birol believes that the situation will only get worse. “Even before the current problems, we expected that production would fall by 500 thousand barrels per day,” notes Dr. Birol. This means that the production may fall by about half.

According to the sources from the Bloomberg agency, the production in the west of the country has suffered the greatest losses. The production is still relevant in the Orinoquia region. Its basin accounts for about half of all production.

 

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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