Venezuela is on the cusp of achieving a significant milestone in its oil production, nearing one million barrels of crude oil per day.
This level of production has not been seen in over five years due to U.S. sanctions and the deterioration of its extraction infrastructure, plagued by corruption and mismanagement.
Official Announcement and Optimism
Petroleum Minister Pedro Tellechea, who also serves as CEO of the state-owned oil giant Petroleos de Venezuela (PDVSA), announced, “We can officially say that we have surpassed 950,000 barrels… this month, we will have more surprises as we continue to increase and are very close to one million barrels.”
He expressed optimism about reaching the million-barrel mark in the coming days, emphasizing the significance of Venezuela’s continued production, refining, and marketing of its crude oil.
Production Trends and Sanctions Impact
According to OPEC, Venezuela’s production reached 910,000 barrels per day by the end of May.
The country, which once boasted a production of 3.5 million barrels per day in 2008, fell below one million in 2019 due to U.S. sanctions, including an oil embargo aimed at ousting President Nicolas Maduro.
Production further plummeted to below 400,000 barrels per day in 2020, marking a three-decade low.
Sanctions Reimposed After Brief Easing
Following a six-month easing of sanctions from November to May, Washington reimposed restrictions, citing concerns about the democratic legitimacy of the July 28th presidential election in which Maduro sought a third term.
The reimposition of sanctions reflects the ongoing political and economic challenges facing Venezuela’s oil industry.