Venezuela’s oil output plunges to 13-year low..Army takes control over 5 seaports
Crude production in Venezuela is at its lowest level since February 2003 as the economic crisis affects the country’s oil industry, according to the monthly report from the International Energy Agency.
“While Iran is clearly OPEC’s biggest source of supply growth this year, Venezuela is notching up the largest decline,” the report says.
Output fell to 2.18 million barrels per day in June, down 240,000 barrels per day from a year earlier. The agency expects a further drop of 200,000 barrels a day, doubling the deterioration it projected last month.
The country’s oil output fell by 120,000 barrels per day from April through June due to electricity cuts.
Venezuela is seen as the poorest OPEC performer with Saudi Arabia and Iran showing a steady boost and Nigerian and Libyan output recovering, according to an S&P Global Platts survey. The output from the cartel was 32.73 million barrels a day – the highest since August 2008.
The projected drop for the current year “looks unavoidable” for Venezuela as foreign oil service providers limited operations in the country with international contractors facing delayed payments as well as “daily operational challenges,”the IEA says.
The drop in global crude prices has seriously wrecked the country’s economy. Some 95 percent of Venezuela’s export revenues come from oil. The price of the country’s crude currently stands at $39.6 per barrel, which is 61 percent lower than the $100.64 in June 2014.
Venezuelan President Nicolas Maduro announced on Tuesday that the country’s seaports will be taken under the army’s control as part of government’s plan to combat the economic crisis marked by severe food and medicine shortages.
“Today we take control of the main five ports — Guanta, La Guaira, Puerto Cabello, Maracaibo and Guamache,” Maduro said in a speech on the Venezuelan national television.
Earlier on Tuesday, Maduro signed a decree in which he ordered the army to co-ordinate the production and distribution of food by monitoring both food processing plants and ports.
Venezuela has been in a state of an economic emergency since January. Up to 96 percent of Venezuela’s budget depends on oil which price is in the lowest in years. Venezuela’s opposition has blamed Maduro for the economic crisis in the country, having gathered enough signatures in favor of a recall referendum.
we are watching a country imploding..
“Crude production in Venezuela is at its lowest level since February 2003”
army controlling the ports now..they need to control what comes in and what goes out..although i dont think much is going out..