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Venezuela's oil situation is a Venezuelan government inflicted wound. The production declines due to governmental mismanagement are bigger than the oil price ch
by danielvf 8y ago
Venezuela's oil situation is a Venezuelan government inflicted wound. The production declines due to governmental mismanagement are bigger than the oil price changes.
Crude oil production is down to 50% of what it was when Chavez took power. The refining side is even worse, with gasoline production was down to 17% of rated capacity mid-2018, and much worse since then. The latest report I could find had their biggest refinery operating at 5% of rated capacity, and often completely out of action.
It's not uncommon from late 2018 to now for Venezuela to be unable to export oil for periods because of pipelines and processing plants breaking down from atrocious maintenance.
For just a few of the issues, see:
https://en.wikipedia.org/wiki/PDVSA https://en.wikipedia.org/wiki/PDVSA