Venezuela’s oil revenues rose 47 percent. Last Minute WORLD headlines and events



Oil production increased by 12.5% ​​in Venezuela, which generated $17.3 billion in oil revenue last year, according to official figures. Despite the sanctions, the main driver of income growth is the rise in oil prices.

According to the Venezuelan Chamber of Petroleum (CPV), the South American country’s oil revenues increased by 47 percent compared to the previous year and reached $17.3 billion. The main reasons for the increase in oil revenues are the increase in daily oil production and rising energy prices.

According to the Venezuelan Ministry of Oil, daily oil production increased by 12.5% ​​compared to the previous year and reached 716,000 barrels. According to the Organization of the Petroleum Exporting Countries (OPEC), oil production last year increased by 23.8 percent to 686,000 barrels.

Oil exports increased by 2 percent in 2022, with the price of Venezuelan oil fixed at 616,500 bpd, with an average of $78.73. Experts report that the South American country, which is having difficulty finding buyers due to sanctions imposed on oil trade, could break prices to $30-40 per barrel. The Venezuelan government also uses oil to repay foreign debts or barter.

“The best scenario for this year is 820,000 bpd”

According to the Venezuelan Institute of Economic and Social Research (IIES), the South American country’s best-case scenario for oil production this year is to reach 820,000 barrels per day, but this requires an investment of $7.65 billion.

The IIES study argues that Venezuela does not have the financial capacity for such investments to date, and problems in administrative and technical processes make this goal even more difficult to achieve.

The government’s goal for last year was 1 million barrels of oil a day.

“Oil production has fallen by at least 75 percent in ten years”

In Venezuela, whose economy is almost entirely dependent on oil revenues, the extraction and sale of oil is directly related to issues such as the state management of the economy and the capacity to manage institutions, since oil is under the control of the state.

Oil production, which was about 3 million barrels a day in 2013 when President Nicolas Maduro came to power, fell below 1.5 million barrels in 2018 and fell further in 2019 due to sanctions imposed on the state oil company PDVSA.

Government sources fully attribute the decline in Venezuelan oil production and income to the sanctions. However, according to experts, over the period 2013-2018, oil production has halved; He draws attention to reasons such as the appointment by the government of soldiers supporting the ruling party instead of worthy people at the head of PDVSA, bribery and corruption, lack of necessary maintenance and investment in refinery infrastructure with reduced production capacity, loss of technical personnel.

It was recently announced that Venezuela’s oil exports to all countries except the US and Cuba have been suspended based on the review of oil deals following a change in leadership at PDVSA.

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