Continuous decline Revenue from foreign currency Venezuela collapsed to the production of Petróleos de Venezuela (PDVSA). Over the past five years, the state-owned company has lost more than half of its raw material and has maintained a downward trend from month to month, according to the Organization of Petroleum Exporting Countries (OPEC) and official data.
While Ministry of Petroleum reports this PDVSA averaged 2,683,000 barrels of oil per day in 2014, the figure has dropped to just 1,488,000 b / d at the end of January 2019. This is not only the lowest oil production over the last six decades in Venezuela, but this is the most pronounced decline among OPEC members.
Venezuela, cataloged by OPEC As the country with the largest oil reserves in the world, it is not even among the top 10 oil producers. Indeed, according to the data of this organization, the United States Energy Information Administration is currently at number 16.
Data on declining oil yields are even worse if we take into account what has been reported by OPEC secondary sources. If in 2014 the production of PDVSA It amounts to 2,373,000 barrels per day for crude oil, and last month it dropped to 1,106,000 b / d.
Manuel Kevedo, president of the oil company in 2017, and governor Nicholas Maduro have repeatedly promised to increase oil production to 2.5 million barrels a day, but have not yet even managed to stabilize the downturn.
PDVSA risks after sanctions
On January 28, the United States Treasury banned the use of North America's financial system for the sale of oil and its derivatives PDVSA and said the funds for crude oil purchases in Venezuela would be frozen at a trust who alone Juan Guido will have access that the Trump government recognizes as president of the country.
But that constraint forced the Venezuelan state to look for new international export-capturing markets previously destined for the United States, said Minister Kevedo. These new receivers are China, Russia and India, major trading partners of Nicholas Maduro.
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But according to economist Francis Monaldi, rising oil exports to these countries do not lead to increased country incomes: transport costs will affect PDVSA exports while Russia and China require payment of debt,
"In short: the income will fall foreign currency of Venezuela, will increase fiscal deficit, hyperinflation and economic contraction, "warned Monald.