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
21 April 2026
After overcoming a COVID-induced demand collapse with several years of successful market management, geopolitical events have conspired to provide the pact’s biggest test to date
21 April 2026
The regime’s policy of using nuclear ambiguity as a deterrent may have failed but it has realised it has other cards to play, while its neighbours are reappraising their approach to security
21 April 2026
As the global energy system undergoes a fundamental realignment, Algihaz Holdings has established itself as a critical player bridging conventional energy markets and the next generation of renewable infrastructure.
21 April 2026
The 25th WPC Energy Congress is taking place from 11-15 October 2026 at the Riyadh Front Exhibition & Conference Center.
