Venezuela Oil Exports and Production in 2023-24

Venezuela's oil exports accounted for $4.04 billion in 2023. In 2023, Venezuela exported an average of 550,000 barrels of crude oil per day with a price of $64.37 per barrel, with 248,000 barrels going mostly to Asia (apart from China). In 2023, this accounted for 45% of the nation's oil exports; Latin America received about 28,000 barrels daily. Once a major market for Venezuelan oil exports, the United States saw a sharp decline in sales following the imposition of sanctions by the US government in 2018. Since 2015, Venezuela's oil exports have been declining yearly as a result of a mix of bad government and US sanctions brought on by political unrest. Less than 12% of Venezuela's overall export value in 2022 comprised crude oil and refined petroleum products, a decrease from nearly 96% in 2013. 

Once a powerhouse in the oil industry, Venezuela has seen a decline in both areas due to internal and external factors. Oil has the 4-digit HS code 2709. This article will delve into Venezuela's oil exports and production, examining key statistics and trends shaping the industry.

Key Insights on Venezuela’s oil exports and production

• Venezuela exports oil to more than 206 nations worldwide.
• Venezuela's oil exports had a total value of $4.04 billion in 2023.
• Venezuela’s oil production totaled 550.2 thousand barrels per day in 2023 i.e. 200.57 million barrels of oil or 27.36 million tons produced by Venezuela in 2023.
• The latest statistics on Venezuelan exports indicate that from March 2023 to February 2024 (TTM), Venezuela exported 370 shipments of oil.
• 44 Venezuelan exporters shipped oil to 113 buyers, representing a 26% increase in exports over the previous 12 months.
• During this time, 26 shipments of crude oil were exported from Venezuela in February 2024 alone. This is an increase of 73% year over year from February 2023 and an 18% consecutive growth from January 2024.
• China, Turkey, Spain, Colombia, Brazil, and India are the countries to which Venezuela sends the majority of its crude oil.

Venezuela's Oil Exports and Production by Year in the last 10 years

Venezuela’s oil export partners: Where does Venezuela export oil?

The countries and continents to which Venezuela might export its oil in 2023 include the following:

• China: China accounted for 16.3% of Venezuela's oil exports in 2023, making it its principal trading partner.
• Turkey: With 13.9% of total shipments in 2023, Turkey ranked as Venezuela's second-biggest oil export partner.
• Spain: With 12% of total exports, Spain ranked as Venezuela's third-biggest oil export partner in 2023.
• Brazil: With 8.3% of total exports, Brazil ranked as Venezuela's fourth-largest oil export partner in 2023.
• Asia, excluding China: The primary destination, taking in 248,000 barrels daily on average, or 45% of Venezuela's total exports
• South America: received approximately 28,000 barrels daily
• Europe: Acquired 4% of Venezuela's oil exports
• Cuba: Acquired 8% of Venezuela's oil exports
• Panama and Colombia are the other major oil export partners of Venezuela.

Background on Venezuela's Oil Industry

Venezuela is home to the largest oil reserves in the world, with an estimated 300 billion barrels of proven reserves. The country has historically relied heavily on oil exports to fuel its economy, with oil accounting for around 95% of Venezuela's export revenue.

A decline in Venezuela’s Oil Production

Over the past decade, Venezuela's oil production has plummeted to its lowest levels in decades. The country's oil output has fallen from a peak of 3.5 million barrels per day in the late 1990s to just over 1 million barrels per day in recent years. This decline can be attributed to a variety of factors, including mismanagement of oil resources, lack of investment in infrastructure, and political instability.

Impact on the Economy

The decline in oil production has had a devastating impact on Venezuela's economy. The country is facing hyperinflation, widespread poverty, and a shortage of necessities. The government has been forced to implement austerity measures and seek financial assistance from international partners to keep the economy afloat.

Challenges in Venezuela's Oil Exports

In addition to the decline in production, Venezuela has additionally faced challenges in exporting its oil. The nation's predominant oil purchaser, America, imposed sanctions on Venezuela's state-owned oil agency, PDVSA, to strain the Venezuelan authorities to enact political reforms. These sanctions have confined Venezuela's potential to export its oil and have similarly exacerbated the nation's financial woes.

Efforts to Revitalize the Oil Industry

Despite those challenges, the Venezuelan authorities have made efforts to revitalize the nation's oil industry. In recent years, Venezuela has sought partnerships with nations like Russia and China to put money into its oil quarter. The government has additionally announced plans to boost oil production to 1.5 million barrels per day through the end of the 12 months.

The Future of Venezuela's Oil Industry

The destiny of Venezuela's oil enterprise stays uncertain. The nation continues to face political instability, financially demanding situations, and sanctions that have hampered its ability to export oil. However, with the proper investments and reforms, Venezuela ought to potentially rebound and regain its popularity as a chief player in the global oil marketplace.

In June, Venezuela’s crude oil production set a new high for 2024

According to a monthly report released by the Organization of Petroleum Exporting Countries (OPEC) on Wednesday, Venezuela produced the most oil in June of this year. Venezuela produced 922,000 barrels of crude oil per day (bpd) this month, up 12,000 barrels from the previous peak output of the year, which was recorded in May, according to direct OPEC sources. The OPEC report cites secondary sources that show Venezuela produced oil with a quantity of 851,000 barrels per day in June, 21,000 higher than the previous month and a record for 2024.

Venezuela's main source of foreign income has historically come from oil exports, but throughout the last five years, the country's supply of crude oil has drastically decreased. The government attributes the downturn of Venezuela's oil industry to the sanctions imposed by the United States against Petroleos de Venezuela S.A.

Conclusion

To conclude, Venezuela's oil exports and production have seen a massive decline in recent years, posing demanding situations for the nation's economic system and destiny. Despite those demanding situations, there may be nonetheless a desire for Venezuela to revitalize its oil enterprise and emerge stronger in the years to come.

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