Venezuela halted oil production crash

Venezuela has managed to halt the fall in its oil production, which is evident in the support of its level of production for the fourth consecutive month, shown in the hydrocarbon generation figures published in the Opep Bulletin, corresponding to July 2019.

The report reveals the stability achieved both at the levels directly delivered by the Bolivarian Government, and by the data collected by the same Organization, obtained from secondary sources.

Direct data shows that at the end of July Venezuela produced one million 47 thousand barrels per day, in meantime in June last one million 50, in May one million 37 and in April a million 45.

According to secondary sources, in July the founding country of Opep produced 734 thousand barrels, in June 750 thousand, in May 776 thousand and in April 753 thousand.

Venezuelan production data are in line with the stability achieved by the Organization, which during the last four months reported threw 29 million 830 thousand barrels per day, 29 million 898 barrels, 30 million 123 and 29 million 950 to the world market, Respectively.

The Organization explains that, according to secondary sources, OPEC’s preliminary total crude oil production averaged 29.83 million barrels per day in July, down from 68,000 barrels per day compared to June. “Crude oil production declined mainly in Iran, Libya and Angola, while it increased in Nigeria and Saudi Arabia,” he said.

OPEC is an international body founded in Baghdad, Iraq, in 1960. It is composed of 14 countries, of which 5 are founding members (Saudi Arabia, Kuwait, Iran, Iraq and Venezuela). Since 1965 it has been based in Vienna, Austria. It was created on the initiative of the Venezuelan government, under the energetic leadership of Juan Pablo Pérez Alfonso, and Saudi Abdullah al-Tariki, both responsible for the oil portfolios of their respective countries.

According to the Ministry of People’s Power for Foreign Affairs portal, the initiative to create the agency began, in 1959, from the need to develop long-term plans, which would include greater control of the Oil Industry by the Venezuelan State, as well as the stabilization of crude oil prices. When a year later there was a fall in the price of oil, the government froze licenses granted to international oil companies established in the country, inciting them to employ and train local labor.

“Because it was not feasible to in isolation increase the price of oil, because of strong competition in the international market, the Venezuelan government invited all oil-exporting developing countries to form an organization that would contribute to stabilize the swinging fossil fuel prices. That’s how the Organization of the Petroleum Exporting Countries was born,” he says

Opep’s importance in the global oil market stems from the fact that Opep’s member countries have the world’s largest crude reserves, and a production capacity capable of meeting their own and other countries’ demand. Member States thus came together to agree on the volume of crude oil production. It currently produces 42% of the world’s crude oil.

OPEC set a goal of coordinating the policy of promoting Member States in such a way as to influence the performance of the price of crude oil, and to ensure and increase the revenue from this productive activity. Twice a year, the Ministers of Energy and Mines of all Member States meet to establish the guidelines for the promotion policy; it’s the so-called Conference. Decisions must be approved unanimously. Avn

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