Venezuelan oil production may tumble 20% by the end of 2017

Market WatchVenezuela’s oil production is poised for a significant decline in the months ahead—and that has nothing to do with its pledge to cut output as an OPEC member.

As the country with the world’s largest proven oil reserves, Venezuela has the potential to influence the oil markets in a big way.

“While Venezuela has a ton of oil underneath it, unfortunately for them, they have one of the highest costs [a] barrel to lift and process it,” among the Organization of the Petroleum Exporting members, said Tyler Richey co-editor of The Sevens Report.

Venezuela’s proved oil reserves was estimated at 300.9 billion barrels at the end of 2015, according to BP’s BP, +0.10% Statistical Revenue of World Energy June 2016. That’s below Saudi Arabia’s 266.6 billion and much less than the U.S.’s 55 billion.

But it cost Venezuela about $27.62 to produce a barrel of oil and natural gas in 2016, according to a story published by WSJ News Graphics last year, which cites data from Rystad Energy UCube. That ranks it as fourth in terms of major producers who pay the most to get the commodities out of the ground.

And profits have been cut significantly in recent years. Prices for the global benchmark Brent crude LCOK7, +0.51% trade at around $55 a barrel, down by about half from a high of roughly $113 in June of 2014. West Texas Intermediate CLJ7, +0.55% trades close to $53 a barrel, down from about $106 almost three years ago. …



Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletter!

Latest Tweets by @IASecurity

Videos Featuring Our Experts

Kingpins and corruption: Targeting transnational organized crime in the Americas Roger Noriega on the Crisis in Venezuela: The world's response | IN 60 SECONDS

Venezuelan crisis: A brief history by Roger Noriega | IN 60 SECONDS


During the last several decades, the United States has invested billions of dollars in trying to help the governments of Latin America and the Caribbean deliver better lives for their citizens. This has meant helping them increase internal security by combating the illicit growing and trafficking in narcotics and the activities of terrorist groups, as well as helping them to shore up their democratic and free market institutions.

Unfortunately, in recent years, continued progress in these areas has been threatened, not least by the radical populist governments in Venezuela, Bolivia, and elsewhere. These governments have instituted retrograde agendas that include the propagation of class warfare, state domination of the economy, assaults on private property, anti-Americanism, support for such international pariahs as Iran, Russia, and even transnational criminal organizations.

We are a group of concerned policy experts that fear the results of these destructive agendas for individual freedom, prosperity, and the well-being of the peoples of the region. Our goal is to inform policymakers and international public opinion of the dangers of these radical populist regimes to inter-American security.