Venezuela Repowers Itself as a Key Actor in Global Energy Stability
A Venezuelan worker at the PDVSA oil facilities, 2024. Photo: X/ @OrinocoTribune
July 12, 2024 Hour: 10:24 am
The Venezuelan oil industry revitalization occurs at a time when geopolitical events force the U.S. to reconsider its policies.
The resurgence of Venezuela as one of the world’s leading crude oil producers makes this South American nation a key player in global energy stability given that its production contributes to the predictability of international price and output trends.
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With its vast reserves of over 300 billion oil barrels, the Bolivarian nation plays a crucial role in global energy geopolitics. Its strategic location in South America, with ports oriented towards trade routes of priority interest to Western nations, gives Venezuela a unique centrality in global market dynamics.
Despite the impacts of the U.S. sanctions, Venezuela never lost its prominent role in the Organization of Petroleum Exporting Countries (OPEC). “We are fighting together to stabilize the oil market, and Venezuela has played a significant role in this work,” OPEC Secretary Haitham Al-Ghais said in July 2023.
Since OPEC’s founding in 1960, Venezuela has been a pillar of this organization, decisively influencing policies that shape the global oil market. Its active leadership within OPEC has facilitated the search for stability in oil prices, often acting as a mediator between the divergent interests of member countries.
Within OPEC, Venezuela has consistently defended the interests of developing countries and smaller-scale producers, striving to maintain fair and sustainable prices that benefit all actors in the global energy market.
On May 24, Venezuelan Oil Minister Rafael Tellechea expressed that his country’s oil industry is in “full revival,” highlighting that Venezuelan production has exceeded one million barrels daily so far this year. Regarding this process of increasing productivity, President Nicolas Maduro assured that three million barrels are expected to be reached in the short term.
The recovery of Venezuela’s oil industry occurred despite the over 930 sanctions that the United States and its allies have imposed on this South American country. It was also made possible through cooperation with nations seeking to articulate common interests for mutual benefit.
In 2018, for example, Chinese investments were foundational for developments towards achieving energy stability. Mutual cooperation with nations such as Iran and Russia allowed Venezuela to break the blockade and export its oil towards international markets. This South American country has also established alliances with nations such as Mexico and Türkiye.
The comprehensive productive recovery plan for the state-owned national oil company PDVSA has allowed Venezuela to adapt and revitalize its oil sector by strengthening internal capacities and reducing vulnerabilities derived from dependence on foreign companies.
Through strategic alliances with major multinationals like Shell, ENI, Repsol, and Maurel & Prom, Venezuela has not only diversified sources of investment and technology but has also highlighted its place in the global market.
In April, President Maduro announced the signing of 20 new strategic alliance contracts with international investors, marking a milestone in the diversification and expansion of Venezuela’s oil and gas sector. Through policies like these, Venezuela reaffirms its determination not to depend on external licenses or interventions to develop its energy potential.
“We will continue to grow with or without sanctions,” said Oil Minister Tellechea, who assured that the increase in production advances independently of what the U.S. government does.
Additionally, the revitalization of Venezuela’s oil industry is happening at a time when geopolitical events have forced Washington to reconsider its interference policies.
“The United States needs Venezuelan oil… For national security reasons, it cannot sustain an oil dispute with Venezuela, especially now that the Ukrainian conflict has made access to Russian oil difficult,” said Argentine analyst Simon Colmenares.
“In a global crisis, the United States cannot miss the opportunity to access the world’s largest oil reserves,” said William Castillo, Venezuela’s Vice Minister of Anti-Blockade Policies.
Autor: teleSUR/ JF
Fuente: PDVSA - OPEC
