Category Archives: PDVSA

My AQ piece: “Russia Is Beating China to Venezuela’s Oil Fields”

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Russian Production & Stakes in Venezuelan Oil Projects (40% stake is limit)

Last October & November I succeeded in interviewing several people in the Venezuelan private sector directly knowledgeable of Russian oil projects with PDVSA. Many Venezuelans wonder what all the Russians-known for their secrecy-are up to there.  Some of my key findings are in Americas Quarterly‘s Winter 2016 edition. Read on … 

Russia Is Beating China to Venezuela’s Oil Fields – By THOMAS W. O’DONNELL

The profits, politics and luck behind Russia’s growing footprint.

Russian companies produce more oil in joint projects with PDVSA than their Chinese counterparts This article is adapted from our 1st print issue of 2016. 

The late Venezuelan President Hugo Chávez, had long envisioned China becoming Venezuela’s biggest oil-sector production partner. So when Rafael Ramírez, then president of Petróleos de Venezuela, S.A. (PDVSA), announced in January 2013 that Russia would produce enough oil with PDVSA by 2021 to become “the biggest petroleum partner of our country,” very few people believed him. It sounded like empty hype.

Yet it turns out that Ramírez was serious. Three years later, Russian companies are already producing more oil in joint projects with PDVSA than their Chinese counterparts. Official figures are either unreliable or unavailable, but according to field data provided by Global Business Consultants (GBC), a Caracas-based energy consulting firm, Russia-Venezuela production as of late 2015 was 209,000 barrels per day (bpd), compared to China-Venezuela’s at a bit over 171,000 bpd.

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Venezuela: Default risks grow (I’m quoted in Platts)

PDVSA president, Eulogio Del Pino, leads a meeting to

PDVSA president, Eulogio Del Pino, meets to “consolidate the new PDVSA.” (‏@delpinoeulogio Aug 11)

Mery Mogollon quotes me several times on PDVSA’s trajectory in Platt’s September Energy Economist.  Here it is:

Venezuela, South America’s biggest oil producer, has seen the value of its oil exports fall to its lowest level since 2004. The economy faces hyperinflation and increasing shortages of basic goods. Debt default seems highly likely. State oil company PDVSA has neither the institutional capacity nor the funds to expand oil production. It is a downward spiral that will lead to political change.  Continue reading

Paralyzed on Economic Reforms, Venezuela Will Mortgage Citgo [My Americas Quarterly analysis]

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Photo:: Listverse.com

[My post at Americas Quarterly, 5 Feb 2015]  Since before the death of Venezuelan President Hugo Chávez in March 2013, his successor, Nicolás Maduro, has remained paralyzed to enact reforms needed to escape the economic dysfunction Chávez left behind.

In his latest national address on the economy on January 21, Maduro finally acknowledged the recession and shortages faced by Venezuelan citizens. Yet, he failed again to clearly implement any of the pragmatic economic reforms[1] advocated by Rafael Ramírez, the former minister of energy and former president of Petróleos de Venezuela, S.A. (Petroleum of Venezuela—PDVSA)— such as a de facto bolívar-to-dollar devaluation via unification of Venezuela’s multi-tier foreign exchange (FX) system, measures to attract more foreign financing for oil production, and removing internal price controls, especially for gasoline.  Meanwhile, in September 2014, Ramírez was demoted to foreign minister, and then to UN ambassador several months later.

According to insiders, Maduro’s failure to implement pragmatic reforms stems principally from two sources.
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Oil Price Collaterals: Saudi strategy shakes Russia, Iran & Venezuela, but they’re not targets

Obama and Saudi King in Saudi Arabia after the death of previous king

Falling oil prices are not a US-EU-Saudi plot against Russia, Iran and Venezuela… though their effect is certainly not unwelcomed..Foto: REUTERS/Jim Bourg

 

[Printed in IP Journal, German Council on Foreign Affairs] Pin-pointing the reason for the dramatic – and continuing – fall in the price of oil is relatively easy: OPEC held its 166th conference in late-November 2014 to decide on a strategy to address oil prices, which had been falling at five to ten percent per month since July. Rather than pursue a production cut

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[Spanish] Mi opinión en Petroquía: China se involucra en los principales proyectos de América Latina

Here’s my piece [in Spanish] in Petroguía 2015, the oil-&-gas sector catalog for Latin America  Note: Hemispheric integration (e.g., energy infrastructure) was endlessly promoted by Hugo Chavez.  In the end, he built none. The region’s resources continue going mainly to develop other regions, such as China. Continue reading

“Venezuela: Petroleum, Politics & Economics in the Post-Chavez Era”–My Columbia U. talk, with Luiz Pinto, 9 October

If you’re in New York:  Luiz Pinto and I speak at Columbia University’s Institute for Latin American Studies (ILAS) on post-Chavez Venezuela, 12-noon, Thursday, 9 October: ilas_venezuela_columbia_talk_09oct14

Aside

Last week, I was quoted in the Wall Street Journal on why Petróleos de Venezuela SA (PDVSA) is looking to sell its Citgo refining affiliate in the USA. The key motivation, in my estimation, is to finance projects critical to … Continue reading

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