Venezuela—the sick man of Opec
Production will continue to collapse, while the spectre of default looms large in 2018
The Venezuelan oil industry is, like the country's economy, in a free fall. Oil production declined by 12% in 2016 and another 10-to-12% in 2017—about 250,000 barrels a day to less than 2m b/d, a level not seen since the late 1980s. The supply collapse is triple Venezuela's commitment under the Opec cut deal. The accumulated output decline amounts to more than 0.7m b/d in the past six years—down a quarter. More than 90% of Venezuela's hard currency is earned through oil sales. As a result, even though the price bounced back in 2017 compared to 2016, the country didn't significantly improve its cash situation and foreign exchange reserves kept declining. The oil industry collapse mirrors Vene
Also in this section
9 January 2026
OPEC+ remains on track as output falls, with only Gabon failing to hit its output targets in December, although Kazakhstan’s compliance was involuntary
9 January 2026
The Latin American producer’s crude prospects rely on a multi-pronged approach where even the relatively easy wins will take considerable time, effort and cost
9 January 2026
While many forecasters are reasserting the importance of oil and gas, petrostates should be under no illusion things are changing, and faster than they might think
8 January 2026
Indonesia and Malaysia are at the dawn of breathtaking digital capabilities. Their energy infrastructure must keep up with their ambitions
