Crude oil production in Texas sets record, besting previous mark from 1970s.
Crude oil production in Venezuela, already at a multi-decade low, could fall another 50 percent by 2020, adding to the woes of Venezuela’s battered economy and citizens, according to a new report.
Venezuela’s crude output has plunged to about 1.3 million barrels a day from 2.4 million as recently as 2015, according to the Norwegian research firm Rystad Energy. Production is expected to fall below 1 million barrels a day by the end of this year and potentially to less than 700,000 barrels a day next year.
Venezuela has the largest proven oil reserves in the world, but the neglect of a Venezuelan government mired in political and economic crises, and policies that have driven off foreign investment have crippled the nation’s oil industry. In addition, U.S. sanctions on Venezuelan crude exports are expected to further undermine production as the Trump administration aims to topple the socialist government of President Nicolas Maduro in favor of opposition leader Juan Guaido, who recently declared himself acting president.
In a best-case scenario, which would include regime change and lifting of sanctions, Venezuela’s production would stabilize at about 1 million barrels a day over the next two years, according to Rystad.
About half of Venezuela’s crude exports go the United States, with most of it bought by Gulf Coast refineries designed to process heavier crude from Latin America, Canada and the Middle East.