WhatsApp Recently, it has become abundantly clear that the number of drills operating in Venezuela has dropped to levels of a country without oil reserves. It might sound like a truism, but if it is not drilled, there is no way to extract oil. Of course, in an oil state like Venezuela with years of history, there are already tens of thousands of existing wells, and the reconditioning of them can help to boost production.
From North to South: The Rise of a New Strain of Socialist Ignorance Nov 22, By comparison, an oil region with characteristics similar to those of Venezuela and a similar drilling history, the Permian basin of Texas, currently has drilling operations, produces 3.
The projections are that by the Permian will be producing more than 5 million barrels, a figure that PDVSA has been announcing as its five-year goal more than 20 years ago, only to go in the opposite direction on the way to one million barrels.
But the reserves of the Permian pale before ours. They consist of Why is that basin enjoying vigorous production, while ours is in a weakened state? The reason is very simple: There, a company that is interested in drilling in a certain oil field goes to the private financial markets, has a choice between subcontractors, logging suppliers, and geophysical studies and, most importantly, knows that its effort and capital are protected by the rule of law, and sales can be made at prices set in transparent markets such as the NYMEX.
Additionally, you know how much your royalty and tax costs will be without changing arbitrarily. Or, worse, would you put them at the service of PDVSA, a company that is in default on almost all of its debts and is being sued left and right for breach of contracts?
The truth is that the country would have to triple or quadruple the number of drills to see a stabilization and subsequent rebound of oil production, and only if we approach the environment of guarantees that exists in the Permian, will we be in a position to compete with that basin for the service of the equipment that is needed.
Meanwhile, high-minded ads will be pure rhetoric with no practical results and we will continue to be the country with the largest oil reserves, but with the worst governance in the world.Venezuela’s oil industry history can be roughly divided into four periods: the discovery and initial production of oil (), Venezuela’s assertion of control over the oil industry (), the oil boom and nationalization of the oil industry (), and the government’s attempt to regain control over an increasingly independent oil industry ().
A collapsing oil industry could lead to Maduro being overthrown. Given the far reaching grasp of the Venezuelan government, there's a good chance President Nicolas Maduro will hold power through - but after the presidential election could be a different story.
May 07, · Venezuela is one of the OPEC members that has pushed the hardest for production cuts in recent years, as it desperately needs higher oil prices not only to fund further oil industry .
Venezuela’s oil output is collapsing at an accelerating pace, deepening an economic and humanitarian crisis and increasing the chances the country will default on its debts. May 07, · Venezuela is one of the OPEC members that has pushed the hardest for production cuts in recent years, as it desperately needs higher oil prices not only to fund further oil industry development.
May 07, · Venezuela is one of the OPEC members that has pushed the hardest for production cuts in recent years, as it desperately needs higher oil prices not only to fund further oil industry development but to use those revenues to pay for basic needs of the Venezuelan people.