• Although one of the original five large oil-producing countries that created the Organization of Petroleum Exporting Countries (OPEC) in 1960, Venezuela fell to the fourth-smallest producer among OPEC’s 13 members in 2019, ranked higher than only Congo-Brazzaville, Gabon, and Equatorial Guinea.
• Reduced capital expenditures by state-owned oil and natural gas company Petróleos de Venezuela, S.A. (PdVSA), along with increased U.S. sanctions, have resulted in foreign partners continuing to cut activities in the oil sector, making crude oil production losses increasingly widespread.
• Venezuela’s revenue from oil exports is severely constricted because few of the exports generate cash revenues. The remaining crude oil exports are sold domestically at a loss or sent as loan repayments to China, Russia, and European companies Repsol and ENI.
• In January 2019, the United States imposed further sanctions, making it increasingly difficult for foreign companies to conduct business in Venezuela. Further U.S. sanctions in February 2020, May 2020, and June 2020 have placed further restrictions on foreign companies.

• In January 2020, Venezuela had 303 billion barrels of proved oil reserves, the largest in the world.¹

• Venezuela’s crude oil production has declined rapidly to historically low levels. In 2019, Venezuela’s average crude oil production (including condensates) was 877,000 barrels per day (b/d), a decrease of more than one million b/d since 2017, when the United States first imposed sanctions on crude oil exports (Figure 1).

• Several compounding factors have contributed to this steep decline in oil production:
• A lack of maintenance
• The faltering financial state of national oil company PDVSA
• A diminishing workforce
• National power outages in 2019 that continue to affect western Venezuela’s production
• Sanctions imposed in 2019 and 2020 that have reduced foreign investments and markets for Venezuelan oil
• Shortages of diluents needed for heavy oil
• As of August 2020, Venezuela’s crude oil production (excluding condensates) was 360,000 b/d, the lowest level since EIA started recording production in 1973 (Figure 2).

• The number of active rigs fell from 69 in the first quarter of 2016 to 2 reported rigs in May 2020 (Figure 2), although news sources state that the last active drilling rig left Venezuela in early August.² Several factor continue to drive down crude oil production:
• Missed payments to oil service companies
• A lack of working upgraders
• A lack of knowledgeable and able managers and workers
• Declines in oil industry capital expenditures will continue to drive down crude oil production³

• Venezuela had 1.3 million b/d of domestic nameplate crude oil refining capacity in 2019, which PdVSA operated.⁴ However, actual refining throughput in 2019 was at an estimated 10% of its nameplate capacity, or 135,000 b/d, down from approximately 40% in 2017.⁵ Refining throughput fell because of a lack of refinery maintenance, power blackouts, and feedstock availability after the 2019 sanctions. With its refinery infrastructure in this state, Venezuela must import petroleum products for domestic consumption.
• In 2019, the Puerto La Cruz refinery was formally shut down after two years of low processing rates.⁶
• PdVSA also operates significant refining capacity outside the country. The largest share of Venezuela's foreign downstream operations is in the United States, followed by significant operations in the Caribbean and stakes in Europe.

Exports

• Venezuela exported an average of 772, 000 b/d of crude oil (including lease condensates) in 2019, or about 40% lower than the 2018 level.
• Europe is now the largest destination for Venezuelan crude oil exports, with ENI and Reliance lifting crude oil for debt repayment.
• The United States had historically been the primary destination for Venezuela’s crude oil shipments, and at its peak in 2007, U.S. imports of Venezuela’s crude oil averaged 1.1 million b/d. In January 2019, the United States placed sanctions on Venezuela that prohibited crude oil imports from the country,⁷ and all U.S. imports of Venezuela’s crude oil ceased in March 2019 (Figure 3).
• In the beginning of 2019, in anticipation of future sanctions, other countries began to wind down imports of Venezuela’s crude oil. In 2019, Venezuela exported primarily to India (321,000 b/d), China (147,000 b/d), and Malaysia (119,000 b/d) (Figure 3).
• In the first half of 2020, exports of Venezuela’s crude oil fell to an average of 500,000 b/d, based on tanker loadings data.
• The United States had been a significant importer of petroleum products from Venezuela (Figure 4), but sanctions resulted in the halt of all petroleum product trade after March 2019 as well.
• In 2019, Venezuela exported crude oil from seven loading points. Venezuela’s largest terminal by barrels loaded is the Jose Terminal, located offshore of the Jose industrial complex in northeast Venezuela (Table 1). The Jose Terminal consists of two berths that can accommodate 300,000 deadweight tons at an average of 55,000 barrels per hour.⁸

• In addition to crude oil, PdVSA has exported refined products from Curacao. However, Curacao is pursuing a $162 million arbitration claim against Venezuela’s state-run PdVSA oil firm over its management of the island’s oil refinery. NuStar Energy operates the loading terminal at St. Eustatius, and PdVSA rents storage tanks for exporting crude oil. PdVSA and Citgo lease a refinery and a storage terminal in Aruba, but crude oil is not exported from that island.

Imports

• In 2019, U.S petroleum product exports to Venezuela fell to 12,000 b/d on average because of sanctions that took effect mid-year (Figure 5).

• Venezuela had 200 trillion cubic feet (Tcf) of proved natural gas reserves at the beginning of 2020, the tenth-largest in the world.⁹

• Natural gas production has been falling since 2016. In 2018, Venezuela produced 2.6 billion cubic feet per day (Bcf/d) of natural gas and consumed 2.4 Bcf/d of natural gas.
• Historically, 90% of the country’s natural gas production has been associated with oil (mostly in eastern Venezuela). As oil production has declined, natural gas production has also declined. Other factors such as operational and maintenance issues and decreased domestic gas consumption have contributed to a lack of further production increases.¹⁰
• In early 2020, Trinidad and Tobago canceled an agreement with Venezuela for the joint development of the Loran-Manatee natural gas field on their shared maritime border because of U.S. sanctions on Venezuela’s state energy company PdVSA.¹¹

• In 2019, Venezuela generated more than 85 billion kilowatthours of electricity, a decrease of more than 19% compared with the previous year.¹² Lower electric generation in 2019 was primarily the result of power blackouts throughout the year and subsequent electricity rationing.
• Recent declines in generation are the result of technical failures affecting both the hydropower and thermal electric power generation plants. These issues include the government’s inability to repair or maintain facilities that are vital to electric power generation.